The mutual bottoms

A mutual bottom or investment fund is an investment alternative that consists of a bottom conformed by the voluntary contributions of money of contributor denominated natural and/or legal people, which is reunited by a Society Administrator of Bottoms.

This Society Administrator of Bottoms, in exchange for a commission, is in charge to administer and to invest to the money of the bottom in a diversified portfolio of financial instruments such as action, bonds, promissory notes, accounts of saving, deposits on credit, etc., by account and risk of the contributor ones.

When investing in a mutual bottom, the investor acquires a number of quotas of participation, which have a value that turns out to divide the patrimony of the bottom (the sum of the money of all the contributor ones) between the number of quotas in circulation. This value varies every day according to the fluctuations of prices of the instruments that compose the portfolio of investment of the bottom.

The gain (or loss) of the investment turns out to reduce the value of the quota of participation at the moment at which the investor decides to sell them, except the value of the quota at the moment in it bought which them, multiplied by the number of quotas that it owns.

The value of each quota is a information that investor can to accede at any time, which allows to know him which is the yield that it is obtaining by his investment, and to help it in the decision to retire its money of the mutual bottom (to sell its quotas).

The decision to retire (to rescue) its money of a mutual bottom, is a decision that the investor can take at any time, although, generally, she is asked for to him that she remains at heart by a minimum period of time, unless pays a penalty.

Others of the characteristics of the mutual bottoms are that, besides being a form fast and simple to invest that does not require of majors financial knowledge on the part of the investor, to begin to invest in them, it is not required of a great amount of money.

As far as the yield of the mutual bottoms, this one usually occurs in the long term. Its yield usually is greater than the offered one by traditional methods of saving (had, among others reasons, to that the amount invested by the bottom are product of the sum of several contributions), although smaller than other alternatives of investment such as stock-market of values.

As far as the risk, the risk exists of which the investor loses part or the total of his money, although, generally, this risk is minimum because the investments that realizes the Administered Society of Bottoms usually are made by investors professions which invest of diversified way.

The risk of the mutual bottoms generally is minimum, although it can vary a little following the basic type, since, for example, usually there are bottoms that have majors yield objectives that others, and that, therefore, present/display a greater risk.