Financial trusts are an instrument that allows the investor to participate in a project or a future collection determined through a debt placement or a capital participation. Financial trusts are listed in a market therefore regulated by the national securities commission. Unlike the rest, these trusts divide their capital into debt securities and participation certificates. All of them allow investors to participate in interesting short or long term projects by earning a competitive interest rate in the market.
Main advantages for the Investor
- Access to project returns for which a lot of capital would be needed if you wanted to participate individually.
- Legal protection by constituting a trust estate other than the trust and trustee’s assets, and cannot be attacked by the creditors of both.
- Variety of types of securities according to the profile of the investor with terms, subordination, guarantees, rates and different types of projects. This allows the investor to find the best title for their risk profile.
- Securities arising from a trust may have a risk rating that serves as a guide when analyzing the relationship between return and investment risk.