How to make investment decisions?

All investment products incorporate a certain level of risk. Therefore, the financial intermediary must correctly explain the characteristics and risks that will be assumed before the acquisition of the product that is being offered or requested.

To find a product that suits your needs, you will need to be informed primarily about your profitability, risk and expenses.

Profitability: It is the remuneration will be obtained for the investment. Profitability depends on several factors: the economic situation, interest rate levels, market circumstances, the issuers financial situation, etc.

Risk: Investing always assumes some type of risk. It should be taken into account that the higher the profitability offered by a product, the higher the level of risk.

Expenses: It is important to know the commissions, fees and other expenses associated with any operation, as they influence their final profitability.

When you adhere to a financial institution to invest in products such as shares, investment funds, fixed income or derivatives, the entity will ask you a series of questions in order to know you better and thus to be able to help you to make your investment decisions and provide the most appropriate services.

The entity must only offer the right products for you, taking into account your knowledge and your experience, to correctly assess the nature and risks of these products.

In addition, when you are provided with personalized advice or your portfolio is managed, the entity will also ask you a series of questions to make sure that the service is in accordance with your knowledge, experience, financial situation and investment objectives.

Entities are required to request all of this information. This obligation is linked, to both the type of service they provide and to the class of product in which the client is interested. The aim is to better understand the customer so they can guide you to through your investment decisions.

Always watch your investments!

The circumstances under which an investment has been made may change over time.