There are several categories of financial investments with different risks and rewards. Have you just decided to invest? Your decision will depend on different criteria, and must take into account your needs and your situation. I offer you the 5 financial investments of 2020 to help you in your choice.
The stock market is undoubtedly one of the best financial investments. By buying assets or securities listed on the stock market, you can obtain an annual return on investment of around 10%.
Although possible in the long term, I must warn you about the high volatility of this investment. The risks do exist and it is as likely to win a lot as to lose everything overnight.
Be careful, investing in the stock market cannot be improvised. You must know the basics of the financial market if you want to manage your portfolio yourself by constantly following economic and financial news. Otherwise, it is better to let a financial expert take care of your management.
In second place for the best financial investments, I offer you structured products. These combine a conventional financial investment (shares or stock market indices for example) with derivatives. They are particularly appreciated by investors and offer a fixed return, provided that the stock market is in an upward trend.
Structured products offer a more than attractive return/risk ratio. If you have well defined the different probable scenarios for your investment, you can make your money profitable, even in the event of a downturn or stagnation in the market.
Structured products can be introduced in the form of units of account in a PEA, a securities account or in a life insurance contract.
Then comes life insurance, which is an excellent way to grow your capital, prepare for your retirement, acquire real estate and even pass on your assets. This is a particularly advantageous financial investment.
Thanks to your life insurance contract, you can diversify your investments. It is very accessible and it is not necessary to have considerable funds to necks to subscribe to a contract.
Life insurance has many other advantages, including the flexibility and high liquidity of the investment or the tax system which is advantageous.
Then there are SCPIs, financial investments that give you the opportunity to invest in real estate even if you do not have substantial funds. You can collect your investment returns every three months.
The operation is simple: you acquire the shares of a company managing a real estate portfolio which rents its establishments to companies. In return, you receive a proportion of the rents paid by these tenants, equivalent to the percentage of the shares you hold.
Finally, SCIs are structures that allow you to buy goods collectively. This type of investment offers the possibility of making investments in real estate or SCPI shares.
SCIs offer many advantages, namely the great diversity of real estate investments as well as excellent liquidity of your investment. On the other hand, this type of investment is particularly dependent on the fluctuation of the real estate market.
In any case, I recommend that you never embark blindly on a financial investment. You must invest knowingly. And do not hesitate to call on a professional to advise you.