The range of investment funds lifecycle BBVA My goal seeks to adapt to different horizons s temporale, usually linked to a vital milestone, a need or a specific savings goal. The life cycle investment funds in this range have three time horizons: 2021, 2026 and 2031 . In all three cases, the investment is global and diversified, combining different classes of financial assets and adapting to market conditions and, above all, to its defined time horizon. Thus, as the date is approaching, the exposure to assets with more risk and greater possibilities for profitability is decreasing, while the portfolio’s assets gain more weight and offer more security to the expected returns. Thus, in the three cases when the set date is reached, the maximum volume that will be invested in variable income will be 10% of the total. This range benefits from the tax advantages of investment funds.
The three backgrounds of the range
- BBVA Mi Objetivo 2021, FI . The maximum amount that will initially be invested in equity financial assets will be 30% (mainly from developed markets). Its exposure to emerging markets will be, at most, 10% of total assets. Within the risk scale, BBVA Mi Objetivo 2021 is currently at a level 2 of 7 (considered low-medium risk).
- BBVA Mi Objetivo 2026 FI : In the case of this life cycle fund, equity assets can reach half of the portfolio at the beginning of the investment. Investment in emerging markets can be, at most, 15%. Within the risk scale, BBVA Mi Objetivo 2026 is currently at a level 3 of 7 (considered low-medium risk).
- BBVA Mi Objetivo 2031 FI : The initial exposure to the stock market can reach a maximum of 70%, while the exposure to emerging markets will be at 20% as the maximum limit. Within the risk scale, BBVA Mi Objetivo 2031 is currently at a level 4 of 7 (considered medium risk).
In all three cases, the part of the portfolio that is not invested in equities will be mainly destined to fixed income, both public and private. At least 90% will have medium or high credit quality and, in any case, not inferior to the Kingdom of Spain. That is, a maximum of 10% could be invested in issuers of inferior quality, without qualification or from emerging countries.
Due to its global nature, it may have the portfolio invested in currencies other than the euro.
The minimum initial investment in all these life cycle funds is thirty euros. For its philosophy, oriented to saving that seeks to achieve a specific objective, an adequate way to invest in them is through periodic contributions.
The investment in the funds of the BBVA Mi Objetivo range can be settled at any time , given that they do not have a refund commission.
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What are life cycle funds?
Also known as funds with an objective date , life cycle funds are managed based on a pre-fixed time horizon, so that the investor finds it easier to meet the savings target that was set. Therefore, in the early stages of the investment they will have greater exposure to risky assets such as equities, in search of greater profitability. And, as the end of the investment term approaches, the risk is progressively reduced with investments in fixed income (for example, bonds) and liquidity, in order to preserve the savings obtained.