The context for financial investments looks positive for 2024. Interest rates have risen in the last year and are now at or very close to their maximum peak. With the price of money at 4.5% in Europe, fixed income offers numerous interesting investment opportunities. For its part, in equities you can also find numerous securities with excellent profitability prospects. In both cases, one of the best options to achieve a diversified portfolio is to invest through investment funds. The range of assets is very wide, so knowing how to choose well is crucial. From Mutuativos, the first fund manager by asset volume independent of banking groups, they share the following investment ideas with us.
Following the interest rate increases that have occurred in the last year, many assets have improved their fixed income profitability expectations. At Mutuativos, Mutua Madrileña's asset management entity, they estimate that there are good opportunities in this segment, which can be taken advantage of by contracting specialized investment funds. “A portfolio of very conservative assets can offer an annual interest rate of more than 3%, which can rise to 5% if we add a little more risk.
For example, banking sector bonds are one of the assets in which we see the most value compared to the risk assumed,” says Ignacio Dolz de Espejo, director of Investment and Product Solutions at Mutuáculos. “On the other hand, the current profitability expectations of fixed income are attractive, but it is advisable to make decisions now to capture those returns. If rates start to fall, we may lose the opportunity. The central banks may take time to lower them, but the market can discount it much sooner,” adds the expert. Among the fixed income funds with interesting profitability prospects, in which you can invest from 10 euros, the following stand out:
Mutuafondo, FI is the first fund that Mututrabajos launched, in 1987. It invests in both public and private debt with a high credit rating, denominated mainly in euros, without taking into consideration any reference index. It is one of the most consistent financial products with the best returns over time, within the short-term fixed income category. The fund has the highest rating, five stars, from Morningstar and is classified as article 8, which implies that it is managed taking into account sustainability criteria.
Mutuafondo Bonos Financieros, FI is a fund specialized in financial debt, one of the segments in which they bet with the most conviction in Mutuáculos. This vehicle, with a risk level of 2 on a scale of 1 to 7, has an estimated one-year implicit return of more than 6%. Since the beginning of the year its performance has exceeded 5%, above the average for its category.
Mutuafondo Subordinados V, FI is an international mixed fixed income fund maturing in March 2028. It invests mainly in corporate hybrid bonds and financial subordinated debt, including CoCos (convertible contingent bonds). The manager launched the fund after the Credit Suisse crisis, which generated an investment opportunity for fixed income issued by the banking sector. So far this year it has accumulated a profitability of more than 9%. The implied profitability for the next financial year currently stands at 7%.
In variable income, Mutuativos also see investment opportunities, although they believe that you have to be selective when choosing the securities to bet on. Ignacio Dolz de Espejo believes that it is time to invest “prudently.” He likes the most defensive sectors and those most impacted by interest rate increases. By activity segments, he highlights the opportunities that the technology sector and that linked to the energy transition continue to provide, among others.
Mutuafondo España, FI is a Spanish equity fund, a market that, according to the managers, offers an interesting investment opportunity with a view to the long term. “It is advisable, however, to be selective with the values chosen. Currently, at Mutuativos we see opportunities in sectors that have little correlation with the economic cycle and in securities with high asset quality that, in our opinion, have been excessively penalized by the rise in rates,” says Dolz de Espejo. They are betting, for example, on companies linked to the energy transition, such as Grenergy or Solaria, and on companies in the real estate sector, such as Colonial, which stands out for having unique assets. They also like infrastructure companies with differential businesses, such as Cellnex.
Mutuafondo Tecnológico, FI is one of the leading funds in profitability in its category, this year. In 2022, the sector was one of the biggest victims on the stock market, but this year it has already recovered practically all the lost ground, driven above all by companies linked to artificial intelligence. The proximity of the end of the rate increase cycle and the efficiency plans of large companies by cutting costs are other factors that explain the excellent performance in 2023. Despite the revaluation of this year, at Mutuáculos they continue to believe in the potential of the sector. “Technology is a fundamental investment for diversified and long-term portfolios. We see value in the great American giants. Our main bets are Meta and Amazon, followed by Apple, Microsoft, Google and Nvidia. In addition, other of our favorite stocks are Infineon and ASML, in Europe,” explains Dolz de Espejo.
Mutuafondo Energy Transition, FI. This fund is managed following sustainable investment criteria. Its portfolio is made up of companies whose activity contributes, directly or indirectly, to the reduction of CO2 emissions.
Specifically, the fund invests in three large groups of companies: renewable energies, electrification and mobility, and energy efficiency, to which are added other themes, such as hydrogen, batteries and digitalization. “The energy transition is another of the bets that we are playing with a view to the medium-long term,” says the director of Mutuocitos.
