In an exclusive interview for Dinero.com.sv, Crecer's Senior Investment Specialist, Ingrid Segovia, provided details about the investment markets and the current situation so that people can obtain better results with the Fondo Previsional Voluntario Crecer Balanceado in a volatile situation.
During 2022 the Fondo Balanceado faced a very challenging period, due to the instability of the international markets due to the drop in investment returns, especially due to some risks such as: a high inflation environment, interest rate hikes, the war between Russia and Ukraine, among others. These situations affected the entire investment market with downward returns.
For the expert, Ingrid Segovia, the opportunities to build more attractive returns occur when assets are down, which is like having a "Black Friday" type offer; but in this case it is in the international markets. She added that markets are cyclical by nature, experiencing ups and downs over time.
In the last three months, the Fondo APV Crecer Balanceado returned to growth after a period of volatility. The return recorded by a person who had joined the Fund as a participant on october 1 to february 3 would have generated a return of 7.18%. It is important to point out that the fund's profile is medium and long term and has a mix of instruments that seeks to balance risk and return; therefore, it is subject to market variations.
During january, international assets showed a remarkable recovery from the lows observed during the past year. Studying the historical returns, it mentions that 10 of the 12 times he has closed a negative year in equities, the following year it has had a positive return.
At the end of february, different international assets faced volatility, reducing the gains obtained during January. However, Crecer increased exposure to local fixed income and to a lesser extent to international fixed income in order to achieve a better return in the long term.
"On average, history shows that after a negative year, possibilities open up for a return of more than 25% the following 12 months. Taking into account the fluctuations that occur in the international market, it is important to have a diversified portfolio such as the one offered by the Plan Dinámico de Crecer and to maintain the investment. With this, volatility can affect short term returns, but benefits are received in medium and long term returns during the recoveries that occur in each cycle", said Ingrid Segovia.
In the investment world, information is always the best ally. That is why learning more, knowing more about the industry you are entering and having expert allies like Crecer will always give you the best tools to make the right decisions to achieve your future goals.
Crecer promotes its Fondo Previsional Voluntario Crecer Balanceado among people who wish to invest their money with prospects of obtaining interesting returns in the medium and long term, for the construction of goals such as the future education of their children, pension supplement, and the construction of patrimony, among others.
To determine the strategy to achieve your medium and long term goals, Crecer provides expert advice that you can request free of charge on its investment site or by clicking here https://crecerplandinamico.com/
Translated by: A.M