Spanish investors continue to invest too cautiously to protect themselves from inflation

The latest data published by INVERCO at the end of 2025 show a historic year for investment funds in Spain. Total assets reached a new high, net subscriptions set a record, and the average return was positive. However, beneath these encouraging headlines lies a structural reality that deserves deeper reflection: the Spanish investor remains conservative, probably excessively so.

A year of record figures

22025 closed with:

• €450,889 million in assets (+13% year-on-year).
• €32,427 million in net subscriptions, the best figure since 2014.

Considering foreign UCIs, the figure rises to €810,737 million (+11.2% year-on-year with data available until September) and the number of participants increased to 26.6 million (+10.7% year-on-year).

At first glance, the outlook is very positive. But the key is not only how much assets grow, but how they are invested.

Good returns in 2025, but low in relative terms

The average return for all funds was 4.9%.

This return can be considered good because it stands out over the TAE of the last 25 years (1.99%).

However, in reality it remains moderate, considering that all equity and fixed-income indices were positive. For example, inbestMe’s indexed fund portfolios (>€5k) achieved much higher returns in 2025, averaging 8.7% (3.8 percentage points higher), and the average inbestMe investor (profile 7/10) reached 9.6% (4.7 percentage points higher).

The underlying problem is that the Spanish investor, with a TAE of 1.99%, falls below the 25-year average inflation rate, which has been 2.3%. Cumulative inflation over 25 years is around 75–80%, meaning prices have risen in that range. This implies a loss of purchasing power of almost 45%.

Even the average Spanish investor, despite investing part of their savings, has not fully protected themselves from inflation, registering a slightly negative real return (–0.33% per year), which represents an accumulated loss of around 8% over 25 years.

The great imbalance: excess fixed income

More than half of assets (62%) are concentrated in products designed to preserve nominal capital rather than purchasing power: money market funds, guaranteed funds, fixed income, and target-date funds.

At the opposite end, equities—which truly allow for growth—represent only 38% of assets.

The paradox of 2025

This conservative bias is particularly striking given the context of the year:

• The IBEX 35 rose nearly 49% in 2025.
• European and international equities posted clearly double-digit returns.

In the long term, historical data show that equities have been the main driver of real wealth growth. Yet, flows in 2025 continued to be directed mainly toward fixed income and money market products.

Misunderstood prudence

Being prudent does not mean avoiding volatility at all costs. It means:

• Aligning investments with the time horizon.
• Protecting against real risks, such as inflation or failing to meet financial goals.
• Understanding that the greatest long-term risk is not achieving objectives, and this risk, though less visible, is more damaging over time than equity volatility.

Many investors accept a silent risk: not growing their capital enough in exchange for a false sense of short-term security.

The importance of proper asset allocation

2025 data reinforce a key idea: successful investing is not about timing, but about designing a coherent asset allocation.

A well-constructed portfolio:

• Diversifies globally.
• Adjusts risk levels to the investor’s profile and objectives.
• Maintains discipline even when the environment generates noise or fear.

Spain saves more and invests more than ever, but continues to invest too conservatively. The challenge is not only to channel savings into financial markets, but to do so intelligently and with a long-term perspective.

Because investing is not about chasing extraordinary returns in a single year, but about maximizing the probability of achieving our financial goals over a lifetime.

inbestMe clients achieve higher returns than the average Spanish investor because:

• We apply an independent indexing model, free from conflicts of interest.
• We operate with significantly lower real costs, which is key to long-term performance.
• We implement indexed management actively supervised by an investment committee.

The average inbestMe investor has a 7/10 profile, practically the opposite of the average Spanish investor, who continues to concentrate their assets in very low-risk, low-real-growth products.

It is not about taking more risk, but about taking the right risk.