Returns of Domestic Investment Funds (Inverco)

Summary

• A €10,000 investment made in 2016 in domestic investment funds would on average have reached €12,975, versus €10,862 in term deposits.p.6
• The cumulative difference after a decade is €2,113 (+21%).p.6
• Fixed income funds make up 40.4% of Spanish fund assets, versus 19.6% in Europe and 18.0% in the US.p.7
• Equity funds represent 17.2% of Spanish fund assets, versus 34.0% in Europe and 59.7% in the US.p.7
• The probability of loss falls from 36.3% over 1 month to 10.0% over 3 years and 0.0% over 10 years.p.9
• With a European or US portfolio structure, a €10,000 investment over 10 years would have generated real returns of €3,667 and €5,007 respectively.p.5

Key insights

1. The analysis covers horizons of 1, 3, 5 and 10 years, using data at the close of March 2026.p.4
2. Investment funds have on average offered higher returns than term deposits in both nominal and real terms.p.5
3. Using a European fund structure, domestic fund returns barely differ from the European average, at €612 over 10 years.p.8
4. Extending the horizon to 1 year cuts the probability of loss by 7 percentage points.p.9
5. Over 5 years, investors would have had losses in only 3% of periods.p.9
6. From 10 years on, the worst historical case still gave a positive return of 1% per year.p.10
7. The one-month worst return reached -55%, falling to -2% over three years and -1% over five years.p.9