10 years of the oldest Mutual Fund in the market.

On March 5, 2014, CADIEM broke the financial schemes of the time and, seeking to revive the Fund industry in Paraguay, launched the Mutual Fund Available in Guaraníes.

At that time it represented a great challenge due to the national economic context, but it was successfully carried out, consolidating the product as a useful and accessible tool for individuals and companies wishing to invest. Today this product has 10 years of uninterrupted trajectory, more than G. 440 billion in assets under management of more than 6,800 investors, offering stability and confidence.

Mutual Funds today are one of the main tools in the stock market world to make capital profitable on demand. Today the mutual fund industry manages more than USD 900 million and is projected to grow exponentially in the coming years. A product that offers profitability, liquidity, diversification and above all great accessibility to the public.

This milestone marked a before and after for the capital market, since at that time this unknown alternative arrived in the Paraguayan market to offer a new way of investing. The main challenge was to break the barriers of lack of knowledge and risk aversion that initially was the perspective. But as it gradually grew and showed positive results, it opened the way to more investors as an excellent alternative to start investing.

For years it was the only mutual fund in the market, but it was also the beginning of a financial trend of exponential growth in the country. Today the situation is completely different in an industry with 8 competitors and more than 20 mutual funds in the market.

What is the purpose of the Mutual Fund Available in Guaraníes?

Like everything in CADIEM, it sought to offer a new solution for people to improve their quality of life through finances. This product was already well known and used in other markets, so it was an attractive business model to make its landing in Paraguay, taking into account the national currency, one of the most stable in the country.

Thus, the following was created CADIEM Administradora de Fondos founded by the 3 directors: Elías Gelay, Cesar Paredes and Gloria Ayala Person to develop a new market in the stock market world. For 3 years the Mutual Fund Available in Guaraníes, the first fund created by the administrator, was the only one in the market, until consequently more Administrators were created, in response to the positive results obtained.

With the growth of this first fund, CADIEM decided to create more alternatives. Thus, CADIEM launched the Fondo Disponible en USD, the Fondo Mutuo Crecimiento en Guaraníes and the Fondo Mutuo Para Todos, offering even more options for different investor profiles and their respective needs. In addition, 3 Investment Funds: The Industrial Buildings Fund, the Eco Forestal I Fund and the Las Orquídeas Real Estate Fund.

How does the Mutual Fund impact the economy today?

At a macro level, the industry grew 46% in the last year, this fund works by adding collective capital, making it possible to access a diversified portfolio with high income and conservative risk securities and instruments from small amounts. In addition to high liquidity, allowing investors to make their money available when they need it.

For companies, it seeks mainly to make their operating capital yield, and generate profitability from large volumes of capital on demand or to work on short and medium-term projects. At the personal finance level, this product seeks to be the first alternative to invest capital on demand, so that people can generate daily profits from the short term and conquer their personal goals.

What does it mean for CADIEM to be a pioneer in this industry?

On the one hand, it positions CADIEM as a reference in market innovation, leading the way since its inception and demanding to continue creating new alternatives for investors.

And from the trajectory side, it consolidates the company for its solvency, stability and confidence, demonstrating how the basis of everything is consistency and commitment. This, demonstrated in the results over the last 10 years of the fund and 20 years as a company.

A fund that started with assets of G. 22 billion in its first year, today manages G. 440,388 billion with more than 6,485 client accounts at the end of February.

Mr. Cesar Paredes, president of CADIEM, emphasizes.

What do we expect from Mutual Funds in the coming years?

Mutual funds and investment funds are just beginning to take off, not only will they continue to grow in assets under management, but new funds are expected to be involved in various sectors of the Paraguayan economy, such as real estate, environmental, industrial and agricultural sectors, generating an impact not only on the economy but also on society.

For this to become a reality, the focus is on financial education for both investors and companies that are considering financing alternatives for their projects, and to make them aware of the benefits of this product and the financial solutions it offers. The more we are part of this market, the better the growth opportunities for all involved.

How to start investing in Mutual Funds?

At CADIEM you can schedule a consultation with an investment executive to teach you step by step how to start investing in this or more alternatives according to your profile. We are waiting for you to take the first step to conquer your goals.