Beyond the ills that afflict the country, the end of the year is usually a period of high commercial flow because a part of Peruvians, in addition to their salary, receive Compensation for Time of Service (CTS) and the December bonus.
Now that the panic over the coronavirus has dissipated, the prudent thing now is to stretch our money to the maximum with the products offered by the financial system, and thus, in a context where the GDP will close on the 0% edge—or even negative—, having an ace up your sleeve for future efforts.
Term deposits
Jorge Carrillo Acosta, professor at Pacífico Business School, recommends recognizing the risk we want to take before making any investment. The safest thing is a term deposit in some financial, municipal or rural savings bank, which have annual rates of up to 7% and have a Deposit Insurance Fund (FSD) for S/124,199; That is, if the entity declares itself in liquidation or dissolution, your savings up to that threshold are safe.
“In the background you have the cooperatives, which usually give rates of between 12% to 13%, but they do not have the FSD. Only in the middle of next year will they have one of 5,000 to 10,000 soles,” he mentioned to La República.
According to the Superintendency of Banking, Insurance and AFP (SBS), profitability ranges between 7.85% and 0.25%, and some cooperatives reach 10% (see infographic for examples according to the risk to be taken).
Arturo García, professor of Finance at ESAN Graduate School of Business, argues that it is key to “diversify the currency” and also save in dollars to get ahead of any risky scenario and thus generate a cost effectiveness adequate average on both fronts.
Likewise, it warns that given the reduction in the BCRP’s reference interest rate, term deposit rates for more than one year will be lower than those currently registered.
Gamble on mutual funds?
It is also one of the most common options (for the most daring). Both specialists agree that part of the capital can be lost due to the nature of this investment market, but You have to have enough courage not to give in to volatility since the investment periods are longer.
The Association of Peruvian Mutual Fund Administrators points out that in October the profitability of all types – each with a different temperament – were positive, as well as in year-on-year terms. These, in soles, range from 0.05% to 5.36%; and in dollars, from -0.35% to 1.68%.
For example, if you are looking to invest S/20,000, the product of several months or years of effort, some funds will give you an annual profit of up to S/2,471. If you aspire for more, it can reach up to S/8,648 in a year with a investment from S/70,000 or in two years, to S/5,247 with S/20,000. García recommends the same formula: bet on soles and dollars to succeed in the face of volatility.
I have other options to stretch my money
The AFPs can also help us increase our capital with their endless pension portfolio, which is freely available. She is no stranger to risks, take note.
According to the SBS, as of September, the net profitability of voluntary contributions reaches peaks of 7.40% (Fund 0), 12.91% (Fund 1), 8.44% (Fund 2) and 3.90 (Fund 3 ). “They are a good alternative but it depends on the risk profile. They replicate the investment structure of the funds that performed well this year,” García noted.
CTS deposits, given the free disposal authorized until December, offers rates up to 7.5%. If your free withdrawal is not extended, your rate would rise again and would be more beneficial.
Source: Larepublica
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