There are upsides and downsides to having investment funds in Italian Banks.
You may want to invest in Italian real estate or any other business in Italy and might be wondering if an investment fund in the bank is a wise move.
What it means to have Investment funds in Italian Banks
When you invest in a fund, it means having your money and those of other investors being pooled together.
The fund manager, who in this case is a bank, holds and sells your investment on your behalf.
While not entirely the best practice, there are a lot of benefits associated with investment funds.
Banks in Italy, including online banks such as HelloBank, offer other services in addition to holding investment funds. They can also help with financial advice on how to manage your finances and invest in things that are likely to give you a good return on investment.
You might ask, why Italian banks? Italy has the best banks in Europe. Foreign investors around the globe trust these banks.
This article will give the benefits of having an investment fund in Italian Banks and advise on whether it is worth it to have the fund in these Banks.
PROS OF HAVING ITALIAN BANKS AS INVESTMENT MANAGERS.
Your money is safe.
The Banks assure investor protection. The investor is protected against insolvency.
In case anything happens to the bank, your fund assets will not be affected.
Transparent.
You get to know every action by the fund manager. You are the one who controls your shares all the way through.
Rest assured that there will be no mischief in the management of funds.
Most banks in Italy operate transparently.
Flexible.
You can invest once or regularly pay into the investment fund.
Expect it to be flexible, where you can access your funds any time you want. Remember, you are the one in control of your shares.
This however does not apply to open-ended real estate funds.
Diversification.
All the eggs are not put into one basket. The investment funds are spread.
This means your money is spread across multiple assets. By doing this, the risks are reduced.
Some investments will do better while others will be worse over time. The risk is this spread.
Investment fee
How about the fee? Is it as costly as other Italian investments? Not at all.
Having an investment fund in a bank costs less than investing on your own. Opening it up requires little amount of fee.
This makes it easier to start an investment fund.
Professional management.
Be rest assured that the funds will be professionally managed by the bank.
Most Italian banks have professional fund managers who will actively manage your investment.
The banks are also result-driven.
Liquidity.
Need cash immediately and have only fund assets? You won’t have to worry about that with an investment fund.
The funds can be liquidated with ease when necessary.
You can quickly sell your fund assets for cash.
While there are several benefits to it, there can be downsides to having an investment fund in Italian banks. High performance is not guaranteed.
There are different types of funds in Italy that are regulated by different laws.
We have retail funds and hedge funds. All types of investment funds in Italy are under the supervision of the Bank of Italy.
The benefits are enjoyed depending on the investment fund chosen.
With retail funds, you register either as open-ended or closed-ended funds.
Retail open-ended funds do not have any limitations as to the level of shares that can be issued.
Retail close-ended funds, on the other hand, have a limit to the number of shares issued.
With hedge funds, you can get more opportunities since the fund avails different investment policies which run concurrently.
While registering an investment fund in Italy, be sure to provide the fund’s name, the duration of the fund, and the custodian bank. This information will be analyzed by the Bank of Italy.
Is it worth it?
Yes. It is worth opening an investment fund in Italian banks. Every investment carries its risks and an investment fund is no different.
The upsides of having an investment fund outweigh the downsides. It will not make you rich within a short period, but as you might have heard, easy come easy go.
Your profits will unveil over a long period, and with time you will see the beauty of an investment fund.
Opening an investment fund in an Italian bank might be the best choice you will ever make this year. Go for it!