Doctor Finance is the exclusive mediator of a new Retirement Savings Plan, the PPR SGF Doctor Financea product designed in partnership with investment consultant Dolat Capital, and managed by SGF.
Focused on capturing savings in a long term perspective, the PPR SGF Doutor Finanças aims to respond to the growing need to ensure future financial independence and security. The most recent data from the European Commission show that the difference between the last salary and the retirement in Portugal will accelerate from the next decade and that, in 2040, pensioners will live on just over half of their last salary.
It is in this context that the new Retirement Savings Plan appears, which allows to enjoy all the tax advantages associated with this type of product, while benefiting from attractive returns thinking about tomorrow.
At a time when traditional savings instruments, such as deposits, offer interest rates close to 0%, the PPR SGF Doutor Finanças has a annual return target between 7% and 9%presenting itself as an attractive solution to effectively put your money to work.
Risk tolerance and long-term focus
The PPR is intended for investors focused on capital growth and risk tolerance and market fluctuations. The Background no capital guarantee, being rated a 5 on a risk scale of 1 to 7, where 1 means low risk and potentially low reward, and 7 high risk and potentially higher reward. Given the possibility of capital losses, PPR is not the most suitable solution for conservative investment profiles.
At the same time, it is aimed at investors looking for Savings solutions with a longer time horizonas a complement to the reform, since the investment must be longer than 5 years.
After this period, the PPR can be redeemed free of charge in the event of retirement due to old age, long-term unemployment, permanent incapacity for work, serious illness, age over 60 years, attendance or entry into a vocational or higher education course. , payment of installments of credit agreements secured by mortgage on property intended for own and permanent housing, or death.
In another case, the redemption may be done anytimebeing subject to possible tax penalties and the application of the contracted reimbursement fee (1% of the value of the participation units reimbursed in the 1st year of the contract).
Also read: Guide on PPR: No more doubts about Retirement Savings Plans
More than 10 thousand assets in portfolio
In compliance with the golden rule of investing – the diversification – the portfolio consists of more than 10 thousand assets, including shares, bonds and raw materials.
As actions, which are historically the asset class with the best long-term returns, represent the largest share of the portfolio (78.4% target weight). It is this component that allows to obtain the growth of invested capital in the medium and long termthrough exposure to large and medium-sized companies in developed and emerging countries, as well as to major sectors of economic activity, including technology, finance, healthcare, consumer and industrial companies.
To ensure a greater stabilitythe portfolio is also composed of global obligations (target weight of 9.8%), including debt securities of governments, supranational entities and companies. This component has a rating of AA-, which means high credit quality and, therefore, low risk.
The portfolio also has a selection of raw materials (target weight of 9.8%), whose main function is to portfolio protection and diversification, through investment in sectors such as energy, precious metals, industrial metals and agricultural commodities. Gold stands out in this selection, the safe haven asset par excellence, which functions as a timeless store of value. Liquidity has a target weight of 2%.
Also read: Types of PPR: what are the differences and advantages for your future?
No subscription costs
Subscribe to the PPR SGF Doutor Finanças it has no cost. O minimum initial amount is 500 euros, and only 50 euros for minors. Subsequent subscriptions have a minimum value of 100 euros, or 50 euros if carried out by Direct Debit System.
The PPR has a fixed management fee of 0.92% per annum, calculated daily on the gross value of the fund and a maximum deposit fee of 0.08% per annum, rates below the market average. The variable management fee is 10%, which is levied on the appreciation of the fund each year, after deducting all costs including the fixed management fee.
If you already have a PPR, you can transfer it to the PPR SGF Doutor Finanças. All you need to do is submit the transfer request in writing at least 10 working days in advance of the intended date for the transfer to take place. The transfer will then be made between Funds and the respective Management Entities.
Also read: Is there an “ideal” age to start investing in a PPR?
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