Everyone agrees that 2021 will be the year of economic renaissance after the pandemic. And that there will be many opportunities to earn money by making wise investments. But where to invest to hope to have good returns? What are the pitfalls to avoid ? In the following lines, we tell you where to put your money.
Among the best investments are investment funds, also called investment funds. Mutual funds consist of pooling the funds of several investors to invest them in different assets, which can be stocks, bonds, etc. This investment is managed by a professional. There are different investment funds that you can access, depending on your investor profile (conservative, moderate, risky) and the profitability you want to obtain.
In recent years, this type of investment can also be done with robo advisors. The robo advisors are “robo advisors”. They are responsible for managing your assets automatically according to your investor profile.
Stocks are securities that some companies issue to finance themselves. You can buy it through Wealth Management Companies (SGR). To do this, all you have to do is open an account with an SGR and give purchase orders to your manager.
Once the shares are purchased, you become the owner and are designated a shareholder. Shareholders get certain rights. These include, among others:
Investing in shares therefore consists of buying these securities to resell them later at a higher price and/or receive dividends. Stocks usually sell quickly. This makes it a very liquid investment.
This type of investment also has a high potential for profitability in the medium or long term. But it is high risk because this market is very volatile. Economic, political or social factors influence the price of these financial assets (equities) and affect the market.
Bonds are debt securities that certain companies, governments and other entities issue to finance themselves. They give the owner the right to receive periodic interest, fixed in advance and constant over the life of the bonds. This investment consists of buying these securities in order to earn income, with periodic interest payments. Bonds offer high return potential, but lower than stocks. You don’t need any technical knowledge to invest in stocks.
This investment mechanism consists of selecting an asset or currency and betting or predicting whether its price will rise (CALL option) or fall (PUT option). It is similar to a call system where speed of management is important. In a favorable operation, you can earn between 50% and 80% profit, a great advantage without a doubt. But otherwise, you can lose all your investment. It is a high risk option and the duration is very short. The operation can sometimes last just a few minutes.
This option is the most common where to invest money, for those looking for security and simplicity. The operation is simple. The financial institution offers you X profitability in exchange for keeping an amount of money Y for Z time in the said bank. You receive interest once the term expires. If you need the capital, you can withdraw your money but after paying a penalty which does not affect the capital.
It is undoubtedly one of the safest investment options, since you know the interest you will receive and the duration of said recovery. Moreover, you do not need a great knowledge of finance, because it is handled by the financial institution.