Available investments: how to choose your option
The types of investments for ordinary citizens illustrate the development of the financial market perfectly. If at the time of the Soviets a person could either put money on a passbook or hide them at home, now there are much more opportunities for earning extra money. The most popular of them – the deposit and rental of real estate. However, the list of available investments is much wider.
How to start an inexperienced investor
The prospect of giving the money to the bank seems to be losing in relation to investing in the purchase of an apartment and then handing it over, but in fact, it is not. 6-8% per annum will give a greater result than the yield from the “work” of real estate (no more than 4.8%). In further words, if there is no desire to excel in investments, it is more profitable to deposit money than to buy an apartment or house, which will necessarily entail paperwork and related expenses.
When choosing one of the options for available investments, you need to rely on the following factors: the level of personal risk, earnings expectations, investment goals, etc. You can start with a simple one. Systematically set aside a part of your earnings for six months, then make an investment plan, determine your riskiness, organize your investment portfolio and invest in assets. They can be divided into three categories: conservative (little, but reliable), aggressive (much, but dangerous), moderate (intermediate ideal).
Available investments: benefits, risks, necessary knowledge
The conservative group includes, for example, bank deposits. Putting the amount at the expense of a certain percentage, at the end of the year you will receive money from it. Given the stakes, it will not be too high (but it depends on the amount of the deposit), but guaranteed. Even in the case of liquidation of a financial institution, there is capital protection for the clients.
Aggressive – a field for experienced players. Among these types of earnings is the purchase of federal loan bonds, shares of companies and their combination into one product. More risky investors go further by concluding futures deals, options, and acquiring cryptocurrencies. The game is worth the candle, but the losses on the total can be significant, up to a complete farewell to the capital. When working with these types of investments, it is important to maintain discipline and be in the context of changing conditions.
The moderate category, as they say, is the golden mean between mentioned above. These are individual investment accounts with the same federal loan bonds, mutual funds and the purchase of foreign currency. To work with the latter, you need to constantly interact with analytics and understand what determines the monetary movement.
