Financial education and the importance of saving Essay

Within the framework of the month of financial education, organized by the Superintendency of Banks and Financial Institutions (SBIF), and this year also came to La Serena with a meeting for the youngest, the general manager of the Association of Mutual Fund Administrators of Chile, Mónica Cavallini, spoke with El Día newspaper about the importance of saving in the economic life of people.

In terms of figures, from the union reveal that the total accounts of the industry are 2",398",653, which is equivalent to approximately one and a half million people who have mutual funds. And projections at the local level estimate that close to 35 thousand people have mutual funds in the Coquimbo region.


According to Cavallini, there are 20 women managers in Chile who offer more than 500 mutual funds, so people should be able to find one that suits their needs. "The first thing is to get informed and for that you can check the websites on the internet of the administrators or go in person to them. It is important that in order to define the alternatives, there is clarity about the objective (what I want to save or invest in), the investment horizon (time in which I want to fulfill my objective) and the risk profile, "he said.

The specialist said that you do not need to be an expert in finance, or have a large amount of money to invest in mutual funds. Regarding the returns, these will depend on the specific fund that is hired, so it would not be prudent to indicate an average return for the entire industry. "Debt funds have lower potential returns, but with less fluctuations, so they are chosen primarily by people with a more conservative profile. Stock funds are prone to greater volatility, which is usually rewarded with greater profitability, and these are chosen by people whose risk profile supports the swings of the market, "said Cavallini.


For the manager of the Association of Mutual Fund Administrators, each person or family has objectives or goals, for example, going on vacations, buying a car, a house, university studies, etc. In order to achieve each proposed goal, it is important to clearly define what is to be achieved, what is needed and what will be done to achieve it, and the time that is or will be delayed, that is, to establish a strategy to be followed, and In this sense, financial planning generates the bases to achieve it.

"Within this planning, saving must be a fundamental part, set aside a part of the income before spending on goods or services that are not vital, and not save only what is left over, if it is left over"," he estimated. And is that according to the expert, saving is a reserve for the future (contingencies, always be prepared, allows cushioning variations in income and consumption and helps increase capital through savings and investment instruments, ie "Take advantage of money."


A mutual fund gathers the contributions in money of a group of people or companies that have similar investment objectives in a common fund. According to the executive of the country's mutual fund industry, this money is managed by a team of professionals (administrators) who invest in financial instruments from various countries, sectors and in different currencies and thus make up a diversified portfolio of assets. In each administrator there are specialists who monitor the markets and adjust the composition of the funds in order to take advantage of the opportunities presented by the market.

"Broadly speaking, there are three types of profiles: conservative, moderate and aggressive, which range from low to high associated risk." Cavallini explained. Thus, depending on the profile of the investor, a type of mutual fund is chosen. And in addition to this, you must know the objective and the investment horizon. "We must consider that there is no universal investment strategy, and that the following questions should always be taken into consideration in order to choose the appropriate fund: Why do I want to save or invest? How much time do I estimate that I will have my money saved or invested? ? How much risk am I willing to take? The answers to these questions will limit the supply of funds, aligning the product to the profile or needs of the participant, "he concluded.

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