Mexico City, (EFE) .- Mexico is the country with the lowest participation in financial markets among the main economies of the Organization for Economic Cooperation and Development (OECD), with only 3% of its adult population investing directly in investment funds.
This was revealed by the most recent publication of the Global Study of the Vanguard firm, ‘Core Components of A Successful Retail Investment System’ (fundamental components of a successful retail investment system).
This report “exposes the work that remains for doing so that the population has access to efficient systems that allow them to invest and meet their financial goals,” said Juan Hernández, director of Vanguard for Latin America.
Among the findings, Mexican households have one of the lowest inverted financial assets in relation to their GDP, with only 2% in investment funds and 33% in shares.
This contrasts with countries such as the United States or Canada, where participation exceeds 150% of the average homes of households.
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“If we talk about Mexico, we know that Mexicans do save – in 2024, almost 70% of the population declared to have some kind of savings. The problem is that the vast majority of Mexicans who save do so with informal methods that do not allow them to grow their money (such as the batches),” Hernández explained.
The report estimates that there are 51.7 billion dollars in household savings within the OECD countries, of which at least 2.1 billion could be channeled to the capital market if only 10% of cash savings were invested.
This investment potential would strengthen the financial security of millions of people and boost capital markets.
The document also presents eight key regulatory proposals to boost retail investment, including automatic registration of retirement funds, tax incentives, predetermined investment products, accessible advice and directed financial education.
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In the Mexican case, limited participation is attributed to multiple structural factors such as the high degree of labor informality, low levels of financial literacy, distrust in the financial system and ignorance about available products.
The analysis also emphasizes that investment costs for the retail public in Mexico are the highest among the countries analyzed, with an average commissions of 1.85% in variable income funds and 1.15% in fixed income funds, which represents an additional barrier.
“The value of each dollar paid in commissions is a dollar less in potential yields. Investors must easily understand and compare the total costs to make informed decisions,” warns the report.
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