Less Investors, But More Active Ones

©image: Sam Photos8.com

During the past financial crisis, the Costa Rican market turned out to be more stable than international markets, making it a relatively safer place for storing capital. Because of this, assets managed by investment funds grew to $2.48 billion.

However, the crisis affected small local investors, who were forced to abandon their investment funds. There are now 30.614 investors in the industry, after 3.409 left in 2009.

Source: Nacion.com

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Costa Rican Investment Fund Market 2010

December 2010

Despite the international financial crisis, assets have grown by 8% in 2010 and the number of investors increased 10% to 33.432 customer accounts.

Among other options, stock funds won over many investors reappearing as an investment option with over 200 investors. Also open Growth Funds increased 12%, Megafunds with an 11% increase and Money Markets with 12%.

Money Takes Refuge in Short-Term Funds

March 2009

In Costa Rica, 55% of the total in investment funds is in extreme liquidity instruments.

The fear caused by the financial crisis has prompted investors to abandon growth and income investment funds which typically offer better returns and put their money in highly liquid, low return funds, where the money can be withdrawn in less than 24 hours.

Restrictions Lifted on Long-term Funds in Costa Rica

November 2010

A court decision removed the obligation to collect commission on early fund recovery or to enforce minimum periods of investment for those funds.

The measure had been adopted by the Supervisory Board of the Financial System (CONASSIF), amending the General Rules on Mutual Funds Investment to prevent investors without the appropriate profile from entering into long-term funds.

Modifications for Investments Funds in Costa Rica

January 2009

The decrease in the minimum asset level in Real Estate Funds to $5m encourages the undertaking of smaller real estate development projects.

The measure adopted by the Superintendence of the Stock Market hopes to adapt the rules to the current financial and economic crisis to promote investment, especially in the construction sector.