Net Yield is the average of the short, medium and long yields term offered by a SIEFORE above the cost of an annuity. To do this, they are managed through a Afore yield table.
The Net Return indicator includes the deduction of applicable commissions. This indicator reflects the past performance obtained by the investments in each SIEFORE.
The Retirement Fund Administrators (Afores) are private financial institutions in Mexico that administer savings funds for retirement and savings of workers affiliated with the Mexican Social Security Institute and recently of those affiliated with the Instituto de Seguridad y Servicios Sociales de Workers at the Service of the State. They were created by the 1997 Social Security Law and began operations on July 1 of the same year.
Which Afore gives the best return in 2021?
When we ask ourselves about the best Afore, according to experts it is Profuturo, followed by Invercap and Sura. Citibanamex and Afore Azteca maintained the “upgradeable” rating while Inbursa, XXI Banorte, Principal, PensionISSSTE and Coppel did not achieve the “upgradeable” rating.
The net return given by the Afores is the short, medium and long-term average of each Retirement Fund Investment Company (Siefore). In Mexico there are 10 SIEFORE that are divided by year of birth, that is, if you were born after 1995 you are the initial basic Siefore, if you were born in 1991, you are the Siefore 90-94 and so on.
The net return includes the deduction of the commissions charged by each Afore for managing your resources.
What does net return mean in Afore?
The net returns refer to the simple subtraction of the gross return granted by the Afore minus the commission it charges. It is an indicator that allows the Afore to compare with each other. Look for the table according to your age and see which Afore is the best for you.
They are ordered from highest net return to lowest net return. The Net Yield tables appear in the Account Statement that the Afore must send you 3 times a year to your address.
How are the returns paid by the Afores generated?
A SIEFORE basic initial It is the investment fund in which the Afore invest the resources of the workers to generate returns.
As we have mentioned in other informative notes of The Truth News, the Afore have the responsibility of managing the savings of the workers, the idea is that they give the highest possible profitability, and that they provide security for said investments.
Now you know how the Afore yield table is handled and which is the one that guarantees you the best management of your retirement savings.