What is a mixed investment fund?

These are investment funds that invest in fixed income and equity instruments.

Each fund has its own investment strategy, varying the percentages of capital invested in fixed income and equities.

One of theadvantages of mixed funds is that the expected return and risk exposure vary, depending on the composition of the portfolio – i.e. the percentages invested in fixed income and equities - making them suitable for various investor profiles. They are a very attractive way of diversifying your investments for the same reason, with higher expected returns than fixed income funds without having to assume the risk of investing entirely in equities.

The Spanish National Securities Market Commission classifies mixed income funds into two groups:

Mixed fixed-income funds

Funds in which exposure to equities is less than 30%.

Mixed equity funds

Funds where equities represent between 30% and 75% of the portfolio. Mixed funds are recommended for medium-term investments of between two and five years.

The main advantages of mixed investment funds are:

• Their ability to adapt to all risk profiles.
• Flexibility that allows investors to adapt to market trends and changes.
• Portfolio diversification, combining the stability of fixed income with the risk of equities.
• Higher expected returns than fixed income funds.

There is a wide range of mixed investment funds. The key is to find the most suitable options for your investment needs. You can always move your investment to another fund if necessary.