investment
How to Choose the Investment Option
Which investment option should you choose for your severance pay and savings?
If you feel confused about how to choose the most suitable investment option for your needs, you’re in the right place. When it comes to investments, there are two fundamental variables to consider:
- the level of risk;
- the investment horizon.
The level of risk
Risk, as we know, is an integral part of investing and is what justifies the return. There are no safe investments. There are only investments with increasing degrees of risk. The rule is that the higher the risk associated with an investment, the higher the return linked to it.
The risk level of Fondapi’s investment options
Fondapi offers 3 investment options with increasing levels of risk. The stocks and bonds that make up each option are selected and blended in different proportions to achieve the most extensive diversification possible for each. These operations are carried out by specialized financial managers of the caliber of BNP, Pimco, Anima and others.
The investment horizon
This refers to the investment duration. In a pension fund, this corresponds to the time that will pass from the moment of enrollment until retirement. The longer the time horizon, the higher the degree of risk you can tolerate.
This is because, historically, financial markets have always grown. There have been and will be periods of decline, but over a long horizon, these are absorbed by the upward financial trend.
How to choose the investment option: guidelines and simulation
Once we have defined our time horizon and established the degree of risk we can tolerate, we are ready to consciously choose the most suitable investment option for our needs.
Using this simple schematic reasoning to choose the investment option allows you to accumulate returns while reducing risk as you approach retirement. Additionally, it will help you free yourself from emotionality, which is always a poor advisor in finance.
Warning: Past performance is not indicative of future returns.
Discover the investment options
How to modify your investment option
1. Access your RESERVED AREA
2. Click on "INVESTMENT" in the top bar
3. Click on "MODIFY PROFILE"
4. Select the new investment option and confirm by clicking on "CONFIRM PROFILE MODIFICATION"
5. DONE!
Fondapi has automatically acquired the instruction and no additional documentation needs to be sent to the Fund.
You can download and keep the receipt
If you want to cancel the instruction, you can do so by promptly sending an email to fondapi@fondapi.it with the subject “Cancel investment option change” with an attached identity document.
