Mutual funds offer returns of up to 5.36%

Mutual funds offer a return of up to 5.36% in structured funds and 5.27% in debt funds on average in 2023, according to the Association of Fund Administrators of Peru.

Thus, the industry shows a recovery compared to 2022 and it is expected that returns will remain attractive at least until the first half of 2024. Then it will depend on the adjustments made by the Federal Reserve (FED) of the US to the reference rate, and precisely the current discussion among analysts is when these cuts will begin, explains Antonio Cevallos, general manager of Fondos Sura.

“There seems to be a consensus that, going forward, the next big move is no longer up, but probably down. And the markets are beginning to get ahead of themselves, they are beginning to take this news optimistically.and that is why we have seen positive returns, in different types of assets,” he said.

Thus, in the last 12 months, on average the industry in the short-term debt category generated returns of over 7% in soles and over 4.5% in dollars.

In this regard, Diego Icaza, general manager of BBVA Asset Management Peruadded that the majority of industry participants have historically invested in this type of funds, which is why they have been able to benefit from a situation of high interest rates with low volatility.

Despite the optimism, specialists recalled that participants must be guided by two factors in addition to profitability, before starting an investment: risk appetite and the investment term. “There is no correct investment instrument in general,” he said. Oscar Zapatageneral manager of Credicorp Capital.

Funds diversify

To be more competitive and reduce the risks for participants, the industry has diversified and increased its investment options, reaching 213 mutual funds as of October 2023, compared to 177 the previous year.

This way, There are more options to invest more abroadin mixed funds, in dollar funds, at different terms and with different risk profiles, the union explained.