How to make a transfer of investment funds

An investment fund transfer is a great alternative for investors, since in addition to allowing them to find products that improve the current conditions, both in terms of profitability and costs, it does not incur tax expenses.

However, if you want to leave an investment fund, keep in mind that this operation requires you to carry out a series of steps to take it correctly, and also forces you to look carefully at the market to find the fund manager and the product that best suits your needs.

So, if you are interested in making an investment fund transfer and benefiting from its advantages, keep reading because this is of interest to you.

Transfer of investment funds: what is it?

An investment fund transfer consists of a transaction in which simultaneously a redemption (total or partial) of the units of your current investment fund takes place together with the purchase of units of the new fund for the same amount for which the previous ones have been sold. The great advantage of this movement is that it is not necessary to pay tax on the capital gains generated.

Please note that in Spain all investment funds are transferable, i.e., you can make a transfer of investment funds regardless of the product, the conditions, or the fund manager. However, there is one exception: SICAVS, which operate under different regulations.

How long does an investment fund transfer take?

The duration of an investment fund transfer varies between five and eight days. In this case, the simplest and quickest operation is the one that is executed within the same fund manager, so that you only change your money from one fund to another, which can take a maximum of five days, although it can be less. The most complex and longest process occurs when you also need to change fund managers, since in this case the transaction can take up to eight days.

Reasons for a change of funds

Investment fund pass-through is a great option for investors for two reasons:

• Change the conditions of the product: in this case, if we do not like the fund we are in because it is generating losses or low profitability, the transfer of funds is a good option to find a better one. If what you dislike are the costs imposed by the fund manager or the lack of transparency or any other disadvantage you see, you should not only change the fund, but also the fund manager.
• Balance your portfolio: you can not only execute an investment fund transfer because you dislike your fund or manager, but also because you want to readjust your portfolio. For example, if the fund has yielded a lot and has a high risk, you may want to send part of the gains to more conservative vehicles. With this operation, you will be able to do so at no cost.

Benefits of making an investment fund transfer

As we have seen, there can be several reasons for an investment fund transfer. But, in addition, there are also a number of important benefits:

• Improve conditions and performance: remember, investing in an investment fund is a tool to help you achieve a financial goal. Therefore, you should use the investment fund transfer to help you do so, thanks to higher returns and/or lower fees. Both allow our assets to grow faster.
• Access new funds or more attractive strategies: sometimes, investment opportunities arise (such as thematic funds or funds that benefit from the economic context) that are conducive to higher returns. In this case, the transfer of investment funds is a perfect option because we do not have to assume any costs as would be the case with other assets.
• Adjust financial objectives: as time goes by, our objectives may change and with them obviously the funds we use. A recurring case is, for example, when approaching retirement, as it is preferable to go for more conservative funds.
• Adjust to the market: there are a number of funds that take advantage of certain economic conditions. For example, with interest rates currently high, fixed income bonds are a better option than years ago, so we could take our money into them.
• Risk management: the most important aspect that we must always take into account with respect to our portfolio is whether it is adjusted to our risk profile. Therefore, the option of adjusting risk through investment fund transfers is a must for every investor.

Steps to carry out an investment fund transfer

If you have decided to make an investment fund transfer, remember that they can be of different types: between different fund managers or within the same fund manager. This implies that the steps to follow in each case are different.

In the case of the first option, the most complex, the steps will be:

1. Contact the issuing institution of the fund you have chosen: in this case, you must indicate the fund you currently have, the one you wish to transfer to and the amount or number of units.
2. The institution will send a request to your institution: once you have completed the first step, the new fund manager must be the one to start the transfer. In this case, it must first send a notification and/or request to your fund manager so that both can carry out the pertinent verifications.
3. Sale of the units: once the request has been confirmed, the home entity will have to carry out the sale of our units and will send this amount and the investor’s tax information.
4. Entry into the new fund: once the money arrives at the new fund manager, the acquisition of the units in the new fund takes place. Once this is done, this will be your purchase price and as the profitability increases, you will benefit from it.

In the second case, the transfer of investment funds in the same fund manager, the steps are even simpler, since you only have to contact your fund manager and first indicate the two funds with which you want to carry out the transaction and the amounts. With that, it will be enough and in a few days the transaction will be completed.

Choose inbestMe: simplicity, transparency and total cost-effectiveness

El traspaso de fondos de inversión es un proceso sencillo, como has visto, ya que solo tienes que preocuparte de encontrar la mejor plataforma y los mejores productos. Dentro de esa búsqueda, una buena opción es la de inbestMe, un roboadvisor con más de un lustro de experiencia. Con la plataforma podrás llevar tus fondos sin coste y beneficiarte de su amplio abanico de productos de inversión elegidos por su gabinete de expertos. Además, también te beneficiarás de sus costes reducidos. 

La suma de ambas, junto a otros atributos como la transparencia o su intuitiva interfaz, harán no solo que tus ahorros crezcan de forma más rápida, sino que todo sea mucho más sencillo. Así que, si quieres tener un mejor control sobre tu capital y ver cómo crece de forma más rápida para tu jubilación, no lo pienses más y entra en inbestMe para beneficiarte de sus ventajas.

The transfer of investment funds is a simple process, as you have seen, since you only have to worry about finding the best platform and the best products. Within this search, a good option is inbestMe, a roboadvisor with more than five years of experience. With the platform, you will be able to carry your funds free of charge and benefit from its wide range of investment products chosen by its cabinet of experts. In addition, you will also benefit from its reduced costs.

The sum of both, together with other attributes such as transparency or its intuitive interface, will not only make your savings grow faster, but also make everything much simpler. So, if you want to have a better control over your capital and see how it grows faster for your retirement, do not think twice and enter inbestMe to benefit from its advantages.