Syndicate
Government Debt Investment Funds
They are funds in which the investment is centered in the securities of the public treasury: treasury bills and government debentures. The commercialization of this kind of product is accorded between the treasury and of the different management associations. The first objective is to contribute to improve its diffusion and its distribution.
There exist two types of funds:
- Government debt movable investment funds: that invest a minimum of 50% of their capital in government bonds and debentures or any other kind of government debts that the treasury issues with an initial term of amortization superior to a year. The rest of the investments are centered on treasury bills or in operations with re-buying pacts, that is, in short-term debt operations.
- The type of investors that acquire this kind of fund is that which pretends that its investment endures a long period of time, due that the oscillation that is profitability may suffer tend to compensate themselves with time.
- Government debt assets on the money market investment funds:
- They require that the capital invested be totally centered on short-term government debt. So they are based then, on securities of short-term expiration, inferior to the six months.
- The ideal investor is that its profitability remains stable on short period terms.