Spaniards keep their savings at home

The real estate sector remains in first place, for the fifth consecutive year, as a recipient of investments by Spanish savers. It is a serious competitor for investment funds

living place

Spaniards keep their investments concentrated in the real estate sector, according to the report published by the Inverco Observatory, the association that groups collective investment institutions.

And it is that, according to the survey, for the fifth consecutive year the properties remain in first place (43%), exactly since 2016. In 2015 the house ranked second.

Direct financial investment, both in the stock market and in fixed income, has ranked second since 2018, displacing deposits, which until then had been one of the preferred assets.

It is followed by savings insurance, while pension plans are in fourth place and deposits are in fifth place.

Housing: the preferred asset of families

According to him Bank of Spain, the weight of the home represents 43.3% of the value of total real assets. Although the peso has dropped slightly since 2014, since it went from 57.3% to 54.2% of total assets.

Furthermore, 75.9% of households still owned their main home, compared to 80.4% in 2014.

Insurance boom

The survey shows that savings insurance has become the third rival of mutual funds despite offering minimal returns.

The explanation is very simple: it is due to the fact that Spanish savers are looking for safe assets that give some peace of mind and profitability. Thus, during the first quarter of the year, both SIALP how the unit linked have increased their positions.

The latter incorporate into the portfolio a percentage of variable income that allows increasing the profitability of the investments. In addition, both insurers and managers are betting on these products with aggressive campaigns since it allows them to transfer the risk of the investment to the client.

Despite the loss of position, deposits continue to concentrate the savings of families and companies, regardless of the low interest rates.

They lose positions compared to 2014, when they led the ranking thanks to the possibility of offering attractive returns.

The funds will register subscriptions

48% of the managers consider that in 2020 investment funds will register net subscriptions despite the pandemic, while 52% affirm that there will be net repayments.

However, 57% of the managers foresee that the net redemptions will be recovered in the second half of the year, while 33% believe that it will occur in the first half of 2021.

“Despite being in a context of maximum volatility in financial markets, savers have demonstrated their ability to remain calm in the face of uncertainty and maintain their positions in funds with a medium and long-term investment horizon, which will favor latent losses in times of crisis become profits in the future ”, says the director of studies at the Inverco Observatory, Jose Luis Manrique.

“At this time, the advice, training and diversification of portfolios according to the profile of the participant are key to take advantage of the opportunities that the market offers us in the long term,” he maintains.

The categories with the highest subscriptions

In relation to the categories in which higher subscriptions are expected, the surveyed entities mention fixed income, guaranteed and monetary and mixed fixed income. Fourth, passive management and global funds are positioned.

In relation to the profiled funds, 28% of the management companies indicate that the equity invested in this type of products exceeds 40% of the total of the management company, while for 23% it represents between 11% and 20% (the 21% of the entities do not have equity invested in this type of product).

Likewise, by 2020, 78% of the entities that have profiled funds foresee that their importance will increase within their manager.