What is a solidarity fund?

It is called a solidarity fund Investment fund The commissions of which will be assigned in part to entities or organizations with social purposes, the fund management company being in charge of said assignment.

It is clear that the good practices of companies and banks have a great impact on society. So much so, that many organizations are changing their strategies, focusing more on the user than on the benefit or self-interest. The concept of solidarity fund enters into this type of strategy.

The corporate purposes that receive part of the commissions may vary depending on the management company that organizes it. The principles or general philosophy of the company in which these commissions are destined to one cause or another will also greatly influence.

These principles, as we have indicated, will vary depending on the company. For example, some organizations will be more in favor of safeguarding human rights, others for environmental protection, others for the insertion of people into society, humanitarian aid, restoring certain public infrastructures, etc.

As for the people who can carry a solidarity fund, it is a question that can vary. The Management company It will be the one that organizes everything related to saving and generating wealth from the amount saved.

On the other hand, those people who want to participate by contributing some capitalthey can do it freely. Individuals or legal entities (such as companies) may also contribute capital. In the latter case, the company may be both public and private.

Normally, when creating a solidarity fund, the people who are going to participate will contribute a certain amount of capital. The mechanism will be the same as a normal investment fund, with the exception that the profits generated by the commissions will go to social purposes. Of course, the money that has been initially contributed by each member will be returned to the payment of commissions.

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