Mutual funds in the DR: how they work and how much they yield

For those who want to go beyond the savings account, mutual funds are the gateway to investing in the Dominican Republic: they allow participating in portfolios of financial instruments (bonds, certificates, stocks) with small amounts and professional management.

How they work

A mutual fund pools the money of many investors and manages it through a fund management company regulated by the securities market. You buy units and returns are distributed according to your share. In the DR there are open funds (you can withdraw within days) and closed funds (with defined terms).

How much they yield

Returns depend on the fund type and the market: fixed-income funds usually offer competitive returns versus certificates, with the advantage of liquidity and diversification. Equity funds offer more potential, with more risk. The important thing is to compare the return rate and fees before entering.

The key difference from certificates

The certificate gives you a fixed rate guaranteed for a term; the mutual fund does not guarantee a rate but diversifies and can adjust to the market. Many investors combine both.

The key figure

From small amounts. Mutual funds open professional investing to those without large capital.