Peru’s Mutual Funds See Record Growth Amid Economic Recovery
Peru’s mutual funds market is experiencing a remarkable resurgence, wiht a record-breaking influx of 70,000 new participants in the last 12 months, according to data from the Superintendence of the Securities Market (SMV). This surge marks a meaningful recovery from the downturn following the election of Pedro Castillo as President of the Republic in 2021. By the end of 2023, the number of investors had climbed to 417,425, nearing the all-time high of 441,109 recorded in March 2021.The growth isn’t just in numbers. Assets managed by mutual funds soared by S/ 15,324 million in 2024, reaching a total of S/ 48,221 million—a staggering increase from the S/ 32,897 million reported at the end of 2023. This milestone underscores a renewed confidence in Peru’s financial markets, as highlighted by the Central Reserve Bank of Peru (BCRP).
Fernando Osorio, General secretary of the Association of Fund Administrators of Peru (FMP), described the year as transformative. “It has been a great year for mutual funds, we have grown almost 50% in managed amount and 20% in number of participants, a strong recovery after tough years in this market,” he told Gestión.
A Shift in Investor Preferences
The resurgence has been driven by a renewed interest in both renta variable (variable income) and fixed income markets. While stock markets outperformed debt instruments like bonds, the real story lies in the changing profile of investors. Many who had withdrawn their capital years ago are now returning, but the market is also attracting new participants with larger assets to invest. This shift is reflected in the rising average ticket size, signaling a more robust and diversified investor base.
Breaking Down the Numbers
To better understand the growth trajectory, here’s a summary of key metrics:
| Metric | 2023 | 2024 | Change |
|————————–|——————-|——————-|——————-|
| Number of Investors | 347,425 | 417,425 | +20% |
| Managed Assets (S/) | 32,897 million | 48,221 million | +46.6% |
| New Participants | – | 70,000 | Record High |
What’s Driving the growth?
Several factors have contributed to this recovery. The stabilization of Peru’s political landscape, coupled with favorable economic policies, has restored investor confidence. Additionally, the performance of renta variable markets has drawn attention, offering higher returns compared to conventional fixed-income instruments.Osorio emphasized that the market’s appeal extends beyond seasoned investors. “We’re seeing more new participants with greater assets to invest, which is supported by an increase in the average ticket,” he noted.
Looking Ahead
As Peru’s mutual funds market continues to grow,experts predict further expansion in 2025. The focus will likely remain on diversifying investment options and enhancing openness to sustain this momentum. For those considering entering the market, now may be an opportune time to explore the potential of mutual funds and other investment vehicles.
Engage with the Market
Are you ready to take advantage of Peru’s booming mutual funds market? Whether you’re a seasoned investor or just starting, understanding the dynamics of renta variable and fixed income can definitely help you make informed decisions. Stay updated with the latest trends and insights to maximize your returns.
What’s your take on Peru’s financial recovery? Share your thoughts and join the conversation below!Mutual Funds Surge in Popularity as Interest Rates Decline in Peru
The mutual fund market in Peru has experienced significant growth, driven by a cycle of cuts in the interest rate initiated by the Central Reserve Bank of Peru (BCRP) since September 2023. This shift has made mutual funds a more attractive investment option compared to traditional bank savings alternatives,which saw lower performance in 2024.
Renzo acervo, general manager of Grupo Coril SAF, highlighted the impact of these changes. “Two years ago, we could find rates of term deposits up to 9%, because we had a reference rate of 7.75%, a scenario that was detrimental to the returns we could offer in the funds. As rates fell last year, we saw a migration towards mutual funds that became more attractive,” he explained.
According to data from the Superintendency of banking, Insurance and AFP (SBS), the average profitability of deposits between 181 and 360 days dropped to 3.71% by the end of 2024. This decline in returns from traditional savings options has pushed investors to explore mutual funds, which offer the potential for higher yields.
The growing confidence in the Peruvian economy has also played a crucial role. In the second half of 2024, improved economic indicators and positive prospects encouraged more participants to invest. Acervo noted that this trend was already visible in 2023, when 6,494 new investors entered the market. The momentum continued into 2024,solidifying mutual funds as a preferred investment vehicle.
Key Factors Driving Mutual Fund Growth
| Factor | Impact |
|———————————|—————————————————————————-|
| Decline in interest rates | reduced returns on traditional savings, making mutual funds more appealing. |
| Economic confidence | Improved indicators and prospects boosted investor participation. |
| Migration from term deposits | Lower deposit rates led to a shift towards mutual funds. |
The mutual fund market’s growth reflects a broader trend of investors seeking diversified and potentially higher-yielding opportunities. As the BCRP continues its monetary policy adjustments, the landscape for investment in Peru is likely to evolve further, with mutual funds remaining a key player.
For those considering their investment options, understanding the dynamics of interest rates and their impact on financial products is essential. Mutual funds, with their ability to adapt to changing economic conditions, offer a compelling choice for both seasoned and new investors.
As the market continues to grow, staying informed about economic trends and investment opportunities will be crucial. Whether you’re a seasoned investor or just starting, exploring mutual funds could be a strategic move in today’s financial landscape.
Mutual Funds Surge in 2024: How Web Platforms and Returns Are Driving Growth
The mutual fund market in Peru has experienced significant growth in 2024, fueled by the dynamism of web platforms and extraordinary returns across various fund categories. According to industry experts, the accessibility provided by digital platforms, whether linked to the banking system or autonomous, has played a pivotal role in attracting new investors.
The Role of Web Platforms in Expanding Access
One of the key drivers behind the expansion of mutual funds this year has been the rise of user-friendly web platforms. These platforms, often integrated with banking systems, have made it easier for individuals to enter the investment market.Pablo Solari, from Flip Inversiones, highlights this trend, noting that many new participants had no prior investment experience.
“In our case, the average ticket doubled in the last year to US$2,000, and the average age of the client rose from 30 to 35 years old. Furthermore, 25% of the base investors decided to periodically increase its capital,” Solari explained.
This shift has been particularly noticeable among younger demographics, who are increasingly turning to social media for financial guidance. Many of these new investors are transitioning from traditional savings options like time deposits, especially after the recent reduction in interest rates.
Impressive Returns Fuel Investor Interest
The growth in mutual fund participation is also closely tied to the strong performance of these investment vehicles. Rolando Luna Victoria, mutual fund investment manager at Faro Capital, emphasizes that the returns offered by mutual funds have been a major draw for Peruvians.
“The returns were good not only in money market funds but also in debt, equity, and cash funds; there was a general increase that motivated Peruvians to continue entering these investment vehicles,” Luna Victoria stated.
According to data from Economática, some mutual funds delivered double-digit returns in 2024. As a notable example, stock mutual funds rose by as much as 11%, international funds by up to 14%, and funds of funds by an impressive 25.8%.
| Fund Type | 2024 Returns |
|———————-|——————|
| Stock Mutual Funds | Up to 11% |
| International Funds | Up to 14% |
| Funds of Funds | Up to 25.8% |
A Shift in Investor Demographics
The mutual fund market is not only growing in size but also evolving in terms of its participant base. solari notes that the average age of investors has increased from 30 to 35, reflecting a broader demographic shift. Additionally, 25% of existing investors are now choosing to periodically increase their capital, signaling growing confidence in these investment vehicles.
However,Luna Victoria points out that while new investors are entering the market,many who exited during the 2021 downturn have yet to return.This suggests that the current growth is primarily driven by first-time investors and those with surplus capital seeking better returns.
The Future of Mutual Funds in Peru
as web platforms continue to democratize access to investment opportunities, and with mutual funds delivering strong returns, the market is poised for further expansion. For those looking to diversify their portfolios, mutual funds offer a compelling option, especially in a low-interest-rate habitat.
For more insights into the latest trends in banking and investment, visit Gestion.pe.—
Are you considering investing in mutual funds? Share your thoughts in the comments below or explore our guide to getting started with mutual funds today!
Mutual Funds in 2025: Optimism Meets Caution Amid Global and Local Uncertainties
The mutual funds market in Peru is poised for growth in 2025,with experts predicting a return to the peak levels last seen in March 2021. However, this upward trajectory may face headwinds in the second half of the year due to global and local factors, including the potential return of Donald Trump to the White House and the looming 2026 elections in Peru.
fernando Osorio, a representative from the Association of Mutual Funds, highlights that while the market remains dynamic, investors are likely to adopt a more cautious approach as 2025 progresses. “It is indeed possible that peopel decide to leave their money in savings funds or foreign currency to take advantage of opportunities in fixed income and variable income, even though starting in the second half of the year these investments will slow down,” he projected.
Optimism in the Market
Despite these concerns, optimism prevails among investors.Rolando Luna Victoria of Faro Capital notes that the current sentiment is positive, driven by strong market performance and growing interest in mutual funds.“Right now people are asking what funds to enter, they see positive experiences on social networks and they wonder why they are not investing, there is an interest,” he stated.
This enthusiasm is reflected in the increasing number of individuals exploring investment opportunities, particularly in fixed and variable income funds. Though, as the 2026 elections approach, Luna Victoria warns that political uncertainty could influence investor decisions.
Key Factors to Watch in 2025
Several factors will shape the mutual funds landscape in 2025:
- Global Political Shifts: The potential return of Donald Trump to the U.S. presidency could introduce volatility in global markets, impacting investor confidence.
- Local Elections: The 2026 Peruvian elections may lead to cautious investment behavior as political uncertainty grows.
- Currency Dynamics: The preference for foreign currency investments, particularly in U.S. dollars, is expected to rise as investors seek stability.
What Lies Ahead?
While the first half of 2025 is expected to see robust growth in mutual funds, the latter half may witness a slowdown. Investors are likely to prioritize safer options, such as savings funds and foreign currency holdings, as they navigate the uncertainties ahead.
| Key Trends in 2025 | Impact on Mutual Funds |
|————————|—————————-|
| Global political shifts | Increased market volatility |
| Local elections | Cautious investment behavior |
| Currency preferences | Rise in foreign currency investments |
Final Thoughts
The mutual funds market in Peru is at a crossroads, balancing optimism with caution. as investors weigh their options, the focus will likely shift toward stability and risk mitigation. For those looking to capitalize on opportunities, staying informed and adaptable will be key.
“The most profitable investments for Peruvians in 2025, according to 8 gurus,” offers further insights into navigating this evolving landscape.
As the year unfolds, the interplay between global events and local dynamics will undoubtedly shape the future of mutual funds in Peru. Investors are encouraged to stay vigilant and seek expert advice to make informed decisions.The business world is constantly evolving, and staying ahead requires access to timely, exclusive insights. For professionals looking to gain a competitive edge, Diario Gestión offers a unique prospect to stay informed.By subscribing to their newsletter, you can receive the most exclusive news of the day directly in your inbox. If you haven’t already, you can register for free and join their growing community of business enthusiasts.Zulema Ramírez Huancayo, an economist from the university of Piura and the current Finance Editor at Diario Gestión, is one of the key voices behind the publication’s financial insights. With her expertise, she provides readers with in-depth analysis and updates on the latest trends in the finance sector. You can connect with her on LinkedIn to explore more of her work and stay updated on her contributions.
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