The funds are an alternative diversified investment, as they invest in several assets, which reduces the risk compared to investing in a single asset.
There is a wide variety of investment funds with very varied risk profiles.
Funds offer the opportunity to invest in different types of assets, geographical areas, currencies, etc. You can choose the funds that best fit your goals and needs.
Investment funds offer the advantages of professional management for amounts within reach of the retail investor.
One of the characteristics of the investment funds is their liquidity, since you can usually buy and sell shares at any time without a subscription or reimbursement fee. However, with some products this possibility may be limited by the application of subscription or reimbursement fees at certain times or for certain amounts. You should therefore read the documentation and characteristics of each fund.
Under current legislation, individuals with tax residence in Spain make transfer investments to other funds with no repercussions on their person income tax, and deferring taxation until it is redeemed in full, so long as the requirements of tax regulations are met.
As with any other investment product, investing in funds entails assuming a certain level of risk. All funds involve a level of risk (depending on their specific characteristics and the assets invested in), which means that losses may be incurred on the capital invested. You can check the specific risks of each fund in the brochure available at BBVA.