The acronyms you should be aware of before investing

When investing, we can find many terms that we are unfamiliar with. If, in addition, they hide behind acronyms, the task becomes more daunting. This is why in this post we explain the meaning of some of the acronyms that you will find most often when investing.

In addition to the acronyms employed for the different types of private capital investment funds, such as RCF, HF or ELTIF, when investing, you may come across others that you need to be aware of.

In this post you will learn the meaning of MiFID, KIID, ALM, KYC and CIU Management Company.

They are public limited companies whose purpose is to administer, represent, manage investments and subscriptions and fund repayments.

In addition, the CIU Management Companies can be authorised to carry out the following: management of portfolios, administration, representation, management and trading of private capital funds, advice, custody and administration of investment fund holdings, and trading of fund units.

It is common to all funds, and it is important that you know it well. It is the Key Investor Information Document, and you must read it before investing.

It is a document that includes the fund's main characteristics and informs you about the risk profile, selection criteria, investment strategies, risks, etc.

EIt is a European regulation whose main objective is to reinforce the protection of retail investors, increase transparency in financial markets and promote competition among financial service providers in the European Union.

The directive, which has been transposed to Spanish law, regulates the relationships between investors and financial institutions to avoid bad practices and guarantee the protection for investors.

This is a process of identity verification carried out by companies and organisations that offer financial services. The aim of the process is to know the identity of customers and to assess the potential risk of fraud, money laundering and terrorist financing.

The process involves collecting personal and financial information from the customer, such as their full name, address, date of birth, identification number, source of funds and business activity.

KYC (Know Your Customer) is based on AML, which is the legal obligation of financial institutions to obtain detailed information on their customer, with the aim of preventing and detecting illicit activities, such as money laundering.

This content is merely indicative. This content is merely financial training offered to you by Crescenta, without the intention of giving any type of personalised investment recommendation.

It is neither any type of advertising of financial instruments nor a recommendation or purchase offer.

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Crescenta