Financial investments consist of one of the most effective alternatives to avoid the depreciation of Good Money Keeping over time. But, in what type of investments is it worth injecting resources, how do they work and what are their main benefits?
In the following lines, we provide you with a list of the main types of investments, including their particularities and potential benefits. Let's go!
Fixed rent
By investing in this type, the investor deposits money regularly for a certain time and, in return, receives an amount of money as a return on the amount invested. This payment can be explicit —also known as periodic— or implicit with just one payment at the time of amortization.
Regarding interest, they can be referenced as an indicator or be fixed from the moment the institution issues the document, whether public —Treasury bills, state obligations, bonds, regional debt— or private, in the format of bonds, company promissory notes, mortgage bonds, securitization bonds, etc.
Fixed income assets generate very little risk, for this reason, their benefits are usually lower than other financial products.
Due to the minimal risk, this type of investment tends to be preferred by people who are just starting their foray into the financial market.
Equities
Equity investments work in the same way as fixed income transactions. However, the main characteristic of this type of investment is that the possible percentage of profit when issuing the document is not known.
This is because equity trading depends on a number of factors, including fluctuations in financial indicators.
One of the most popular examples is corporate shares, of which both their price and performance vary according to the behavior of the markets and the evolution of the company.
Since the percentage of return is not known, they consist of assets with higher risk because their value depends on external factors, and, therefore, they present more benefits than the previous alternative in the event that the market is favorable.
Stock Exchange
The assets of the Stock Exchange are extremely well known and popular because they can be traded freely within the stock market. That is, you can buy and sell the instruments when you see fit.
However, to ensure the realization of very good deals, it is imperative that you know the sector and know how to detect the best moment to add or sell an asset in your portfolio.
Foreign exchange
The foreign exchange market is similar to that of the Stock Market, however, it presents greater liquidity.
The purchase and sale of currencies such as the Dollar, Yen, Euro or any other currency following international standards, is a very useful means to avoid inflation in the country and reduce the devaluation of money.
The objective of these transactions is very simple: Buy a certain currency to sell it when it increases in value and thus obtains a good return.
Raw Materials
Among the most popular physical investments, we highlight raw materials such as:
- Energy (oil).
- Precious metals (gold, silver, etc.) and industrial (copper and tin).
- Perishables.
- Agricultural products.
Obtained from nature, they present very good yields once they are purchased as useful raw materials for the production of other articles or to use, such is the case of energy.
Real estate
Also known as real estate, investing in bricks is another highly profitable physical investment. Despite offering a good return when you buy the property for the sake of reforming and selling it, the recovery of the value invested through your rent can take a few years.
Indeed, one of the main attractions of investing in real estate is that they have a very good capital gain and hardly lose their value. At the point when this occurs, it is conceivable that the property is deserted and has not gone through remodels throughout the long term..
As for the risks, they are low, but they exist. It is recommended that the person invests in real estate only when it is clear that his objective is to make a profit in the long term. Otherwise, it is worth injecting the capital into other assets that offer better returns in a shorter period of time.
Investment tips
Now that you have understood where you can invest your money, you are ready to learn the best investment tips. Practical and useful, these tips will help you take your first steps in the investment environment.
Research the options
As you can see, there are numerous investment alternatives. Each has quirks, advantages, and disadvantages that can significantly influence performance.
Before deciding, do a lot of research and carefully evaluate the options to choose the ones that best suit the characteristics of your business, especially if you are a Content Creator.
Even if you are interested in learning more about the race, we invite you to take a look at our video:
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