The answer is what all of us as investors want: to obtain profitability. However, and unlike other investment products or instruments, investment funds combine a series of advantages in a single instrument that have given them their current success. Perhaps the most significant thing is that it allows the individual investor access to investments that would otherwise be very difficult or that are reserved for large corporations or investors with large amounts of capital. Furthermore, since they are diversified investments, the risk is minimised.
Amongst all the financial instruments in which they are invested, some carry more risk than others, so some compensate others and the risk is lower for the investor. This is coupled with the fact that all investment portfolios are managed by professionals who are in charge of diversifying the investment, always seeking the maximum profitability based on the risk that each investor is willing to assume.
Another very interesting advantage that investment funds offer is liquidity. The funds allow you to redeem the shares acquired, at any time without penalties.
And of course, their taxation: Investment funds are taxed only when the bank wants to redeem our shares (which can be total or partial) and, unlike other products such as deposits, the capital gains obtained are taxed as income on assets, that is, progressively in line with that obtained.
And finally, investment funds allow us to organise a plan of periodic investment, in other words, to invest small amounts, but in a systematic way, making contributions without modifying our standard of living, but which, in the long term, can form capital.