One of the main advantages of Funds is their liquidity. In general, units can be purchased or redeemed every day, with redemption payments being made within three working days at the latest. This information can be found in the prospectus and the KID.

Due to the nature and tax treatment of the Funds, it is advisable to hold the investment for a certain period of time. The KID and the prospectus indicate the recommended time horizon for each specific Fund, depending on its characteristics: collateral, markets invested in, nature of the investments made, etc. For example, more volatile Funds will require longer time horizons, as this will give the investor room to recover from market downturns.

Units are owned by the Investors, who can redeem them at the net asset value applicable at any given time. The securities in which the Investment Funds invest are held in custody by the Depositary. In the event of insolvency of the Depositary or the Management Company (which is highly unlikely, as both entities are supervised and subject to solvency requirements), the Fund is not dissolved and the Management Company or the Depositary is replaced by another entity, without affecting the situation of the unitholder.

The amount of the fees and the conditions under which they apply are set out in detail in the prospectus of each Fund. There are different types of fees:

• Management fee: This is charged by the Fund manager and is implicit, i.e. it is already deducted from the net asset value.
• Depositary fee: This is charged by the Depositary entity for the administration of securities. It is also an implicit fee.
• Subscription fee: This is a percentage of the amount subscribed and is only charged by some Funds.
• Redemption fee: A percentage of the amount redeemed that is charged only for some Funds Subscription and redemption fees are explicit, i.e. they are charged to the unitholder at the time of purchase or sale of units.

Regular contributions allow you to invest in Investment Funds in a systematic way. By diversifying the times at which investments are made, the risk is reduced, as the market's own ups and downs are cushioned. They also allow you to benefit from compound interest.

• Automatically setting aside a portion of your income helps to build up long-term capital. No matter how small the amount allocated to the Fund may be, doing so in a recurrent and automated way makes it a habit.
• Establishing regular contributions avoids having to make investment decisions and thus mitigates the errors that arise in this process.
• It reduces investment volatility by entering the market at different times of the economic cycle.
• Periodic contributions allow you to start investing without having a large capital. They can be made from 30 euros and can be increased or suspended at any time.

In the market you will find a wide range of possibilities, depending on the type of Fund and its investment vocation. We can classify the different types of Investment Funds according to their investment vocation as follows:

• Money market Funds: They invest in high credit quality assets in the money market, such as bank deposits and bills. The average duration of their portfolio is equal to or less than six months.
• Fixed income Funds: Invest mainly in fixed income assets such as bills, bonds and debentures.
• Equity Funds: Invest the majority of their assets in equities.
• Balanced Funds: Invest in a combination of fixed income and equities.
• Fully or partially guaranteed Funds: depending on whether or not they insure the totality of the initial investment at maturity. Within fully guaranteed Funds, there are fixed-return guaranteed Funds, which guarantee the investment plus a fixed return with the guarantee of a third party, and variable-return guaranteed Funds, which guarantee the recovery of the initial investment and offer the possibility of obtaining a return linked to the performance of an equity instrument, currency or any other asset, all with the guarantee of a third party.
• Passively managed Funds: they replicate or replicate an index (such as exchange-traded funds - ETFs). Funds that pursue a specific, non-guaranteed performance objective are also included.
• Absolute return Funds: These Funds pursue a specific, non-guaranteed return/risk objective on a regular basis.
• Global Funds: Funds in which the percentage of investment by asset, geographical area or currency is not fixed in advance.

Like any other investment product, investing in Funds involves certain risks. The nature and extent of the risks will depend on the type of Fund, its individual characteristics and the assets in which the assets are ultimately invested.

In general, Investment Funds allow risks to be controlled, because diversification favours the offsetting of positive and negative returns from different assets. However, the possibility of losses can by no means be excluded, since the capital is invested in securities whose price fluctuates according to the evolution of the financial markets. The first thing an investor must therefore consider is to what extent he or she is prepared to accept the possibility that the investment will be worth less when the redemption request is made than at the time of purchase.

The ‘Summary Risk Indicator’, which is a guide to the level of risk of the product compared to other products, can be found in the Funds' KID. It shows how likely the product is to lose money due to market developments or because we are unable to pay you.

All the risks that a Fund's investments may have are defined in detail in its prospectus.

One of the special features of Investment Funds, for individuals resident in Spain, is that they are not taxed until the invested capital is repaid when the units are sold. Another characteristic of the Funds is tax deferral, which allows the money to be transferred from one Fund to another without paying tax at the time of the transfer.

The income of Investment Funds is mainly generated when the units of the Fund are sold, by the difference between the redemption (or sale) value of the units and the subscription (or purchase) value and, in some cases, as in the case of distribution Funds, also when dividends are received. The positive or negative result obtained when selling a Fund (totally or partially), for personal income tax purposes, is considered a capital gain or loss and is included in the savings tax base.

At the time of the sale, the financial intermediary will withhold 19% of the amount of the gain as a payment on account of the taxes, that will have to be paid when the tax return is made. This percentage corresponds to 2023 and may vary each year. Updated data can be consulted on the website of the Tax Agency (www.aeat.es). If there is a loss, nothing will be withheld.

Navarra and País Vasco have a special taxation system as they have transferred powers in this area, which means that there are small differences in the way in which investments are taxed.