In the next edition of Funda Investimentório de Investión (FII) we will be looking at the opportunities to invest in opportunities zone funds.
With that in mind, we will look at how to choose funds for each fund and where to invest it.
Investment options for opportunities zone fund A) Index funds A fund is an index fund that is defined by its asset allocation.
A fund with a target price is usually defined as the amount that would be expected to be paid in a given year for a given share of the fund.
The fund is intended to invest into stocks with a high dividend yield and that is where most funds focus their money.
Index funds have different goals and requirements, including being able to manage risk and return to a stable price in the market.
This means that the fund’s portfolio has to cover a wide range of market risk factors and the fund is also limited in its assets to only the largest investments.
In this way, an index funds are ideally suited to fund growth stocks, which can be seen as being a diversified portfolio that will cover a range of different sectors of the economy.
B) Short-term funds A short-term fund is a fund that has a specific strategy in mind.
Funds that are specifically designed for short- term investments are usually defined by the number of years they have been open.
For example, the Funda Estado de Investividad (the fund which invests in the UK) is designed to return more in a shorter period of time than an index or a fund designed to invest globally.
If the target is to earn 5% in the next year, then it is probably a short-Term fund and you should not invest in it.
If the target value is higher than 5% then it may be a long-term or even a speculative investment.
C) Non-index funds A non-index fund is another fund that does not have an investment strategy in place and focuses on certain sectors of economy.
For example: The Funda Nacional de Investivión y Ciencias Economísticas (the non-Index fund) is a non-expert fund that focuses on sectors of agriculture and manufacturing.
When the Fundo Estado Nacual de Investicion (the Index fund) was launched in 2011, it focused on a broad range of sectors, which is why it has an investment range of 6-8% of the overall market.
The Fundo Naciliar de Investición y Tecnologia (the Non-Index Fund) is different.
This fund focuses on the sector that has been the most important for the economy in recent years.
Its focus is on specific sectors and companies that have made an impact on the economy and have been undervalued.
You can see an example of the difference between an index and a non index fund in the example below.
Fidelity has developed a portfolio that invests in more sectors and sectors with higher yields.
Investing in a nonindex fund means you are limited in what you can invest in and you have to choose between different types of stocks and bonds.
There are three main types of non- index funds: