20090128-fund-pictures-2 The selection of investment funds is a relevant topic for any citizen and more if he is Spanish. Many people are already aware of the current insufficiency of the social security in order to cover our basic needs once retirement comes, mainly due to the aging of the population and the economic mismanagement from politicians that allocates resources to inert activities which are completely unproductive for our society.

20140607-lux2-7 The main difference between mutual funds and investment companies lies in their legal form. So while the first (investment funds) are entities without legal personality, investment companies are set up as investment companies with variable capital (SICAV). This important difference, attribution or not legal personality, resulting in the investment funds need to be represented by two entities: a management company (which stands in representative and administrator of the fund, which has jurisdiction over the policy and actions investment thereof) and a depository (in charge of guarding the securities in the investment portfolio and to channel all receipts and payments to be made). Meanwhile, investment companies, as entities with legal personality, do not require management company, to the extent that can be fitted with bodies own administration to assume this task. However, they require, in any case, a depositary.