If there is a coincidence between financial experts and analysts, it is that at no time is it a good idea to let money stop generating some type of profitability.

For this reason, at a time of uncertainty and volatility, with the impact of fuel prices, the devaluation of currencies, and the risk of private property in some markets, the question that everyone asks is: where can I find security?

Mutual funds may be a good answer. And Panama presents a series of advantages such as political stability, legal security backed by the constitution, the strength of the dollar, and good economic expectations for the next year.

The economist Alberto Bernal, head of emerging markets at XP Investments, assured the Martes Financiero that “the added value of Panama, from the point of view of the international market, is the security of investments.

The most important thing is that Panama maintains its reputation as a serious place with serious policies and that a Hugo Chávez, a Nicolás Maduro, or a Pedro Castillo cannot rise [to the Presidency] here to say that the rich are the bad guys. As long as something more logical in the political issue is maintained, everything will be fine.”

Eduardo Caballero, CEO of Norfolk Financial Group and representative of FIAFIN in Panama, told the same outlet that “it is essential to measure the temperature of the markets, which translates into knowing the economic prospects well.

There is interest in seeking financial instruments that support the infrastructure of the countries, with sustainable projects, as well as sovereign debt funds. Investing in the real estate sector can be a good alternative, just like sovereign bonds with high long-term yields”.

Finally, the president of the Panamanian Chamber of Capital Markets (Capamec), Jorge Vélez, stressed to Martes Financiero the importance of the local market and easy access for investors.

“There are institutions in which a person can open an investment account with $3,000 to $5,000 dollars; perhaps in these cases the instrument to invest can be seen as somewhat limited due to the low volume of capital, but the important thing is that it can have access to the capital market,” Vélez said.

Data

• In Panama there are 61 registered investment funds and 52 registered investment companies.
• In the last five years this sector has grown 73% with investment transactions for $3.85 billion.
• The total net assets of investment companies as of September 2022 were $2,899 million, according to figures from the Superintendency of the Stock Market.
• At the end of September, the issues registered in the stock market reached $2,627 million; 73% of issuers are new.
• The amount traded in the stock market was $59,052 million by the end of September.