A combination of fixed income and equities depending on your risk profile
Mixed funds are ones that invest in both fixed-income assets and equities. Therefore, they can be a valid solution for all kinds of investors covering all risk profiles, both the most conservative and the riskiest.
The percentage of investment in fixed-income and equities will vary depending on the investment policy for each fund. You can choose the combination that best adapts to your risk profile.
Banco Santander's mixed investment funds include various ranges such as the Income Generation Range, which offers periodic income1, and the Global Management Range, an option for efficiently diversifying your investment.
Why invest in Mixed Funds?
- Diversification: mixed funds are a way of trying to mitigate risk, as, besides investing in different types of assets, they are usually also in different geographical areas, sectors, etc.
- Adaptability: given the wide range of mixed funds, you are likely to find one that adapts to your investor profile, either by risk level, term during which you want to invest for, capital you are considering investing or other.
- Management by Santander Asset Management: a global asset manager with more than 200 specialists, a presence in over 11 countries and a high capacity for analysis and strict control of risk.
In addition, our investment funds have:
The liquidity of our funds means you can withdraw the amount you need almost immediately.
Funds are tax-exempt until they are redeemed for individuals who are resident in Spain2. Therefore, it allows you to carry out tax planning adapted to your needs.
Spread risk among different financial assets as a measure to try to reduce the risk of a market decline.
What risk is involved in investing in mixed funds?
Investing in mixed investment funds implies assuming a certain level of risk that will depend on the composition of each fund, market fluctuations and other factors associated with investing in securities, so there is a risk of losing all or part of your investment.
In general, investing in funds involves assuming the following risks:
- CREDIT RISK
Due to the quality of the assets in which it invests, as well as its issuers, this is the risk that the issuer will not be able to meet the payments.
- MARKET RISK
The possibility that financial instruments are listed or have a value below the price we have paid for them. In this regard, the investments may be affected by:
Interest rate risk: interest rate fluctuations affect the price of fixed-income assets. The sensitivity to this risk depends on the duration of these assets.
Foreign exchange risk: fluctuation of the exchange value in the case of assets denominated in currencies other than the reference currency of the participation.
Market risk due to investing in equities: derived from variations in the price of equity assets.
Risk from investing in emerging markets: political changes or economic circumstances can affect the value of investments.
Geographical or sectoral concentration risk: the concentration of our investment in the same area or sector increases market risk.
- FROM INVESTING IN DERIVATIVE FINANCIAL INSTRUMENTS
Investing in derivatives (futures, options, etc.) may incorporate higher risk given the nature of these products.
- LIQUIDITY RISK
The risk that no counterparty is found in the market and, therefore, a product cannot be sold.
- SUSTAINABILITY RISK
These risks correspond to environmental, social or governmental events or conditions. The sustainability risk of the investments will depend, among others, on the type of issuer, the sector of activity and its geographical location.
How are they arranged?
You can arrange different mixed funds online. If you are already a Banco Santander customer, you can arrange an investment in mixed funds online.
If you prefer, you can contact us at your nearest Santander branch.
1. WARNING: neither the returns nor the initial investment in these funds are guaranteed, meaning that the investor could lose money even though periodic payments may be received. The periodic payments for Santander Defensivo Genera, FI are quarterly reimbursements of your shares, i.e. they are not the yield or return obtained by the fund. With the Santander Eliquibrado Income, FI fund, the unitholder may receive, via semi-annual dividend payments, a variable amount at the discretion of the fund manager, subject to the legally applicable withholding tax. On the day the dividend is paid, the net asset value of the fund will be reduced by an amount equivalent to the amount of the profit paid out.
2. In the case of Collective Investment Undertakings (CIUs), individuals subject to personal income tax can benefit from the tax deferral regime on transfers between CIUs, which take place in accordance with current legislation. The taxation of returns obtained from investments will depend on the tax legislation applicable to the personal situations of investors, and may vary in the future.
Investment funds involve certain risks (market, credit, liquidity, currency, interest rate, sustainability risk etc.), and therefore some or all of the investment may be lost. The risks are set out in the fund's prospectus and Key Investor Information Document (KIID).
Before taking the decision to invest, you must consult the fund's prospectus and KIID, available from the supervisory body concerned, and also from the fund manager's website. The decision to invest in the fund must be taken in due consideration of all the characteristics or objectives of the fund described in the fund's prospectus and KIID. The investment hereby promoted refers to the acquisition of units in an investment fund, and not in a certain underlying asset. Past performance is not a reliable indicator of future results, and if the fund is denominated in non-euro currencies its performance may rise or fall in response to monetary fluctuations.
The taxation of returns obtained from investments will depend on the tax legislation applicable to the personal situations of investors, and may vary in the future.
Management Company: SANTANDER ASSET MANAGEMENT, S.A., S.G.I.I.C., registered in the CNMV under number 12. Depositary Institution: CACEIS BANK SPAIN, S.A., filed with the CNMV under number 238. Fund marketed by: BANCO SANTANDER, S.A., filed with the CNMV under number 49.
This is an advertising communication, for commercial purposes. It is not information that is contractually binding, it is not information that is required by any legal stipulations, nor should it be considered an investment recommendation or any form of advice, and it is not sufficient information to base an investment decision on.
© BANCO SANTANDER, S.A. All rights reserved – registered office: Paseo de Pereda, 9-12. SANTANDER. Tax ID A-39000013.