What are the best investments to make sure your money is really worth it?
This question is very common, but the answer changes constantly.
That’s because, to get the best possible return on your money, you need to be always well informed.
The world took a new economic course during the pandemic, and within this context it is essential to know what are the best investments to protect your capital.
In addition, there is a factor that makes this cannot be ignored. This is the new coronavirus pandemic and its impact on financial investments.
There are many elements to evaluate – and we will talk about all of them from now on.
The first, let’s say in advance, is what you will do with your money.
For example, consider that some people remain in doubt between investing and doing business, creating a dead end between these two options.
Regardless of your financial goal, you must understand the changes in the market and the economy to get the most out of those changes.
For all the information you are looking for, read this article until the end and discover the best investments.
Where to invest?
Fixed Income Investments
To invest in fixed income securities and obtain excellent financial results, it is necessary to consider the following information:
- The longer the term, the greater the return.
- The greater the liquidity, the lower the return. The tendency to return
- The greater the risk, the greater the return tends to be.
That way, you need to choose your investments based not only on your return on investment, but also on your investment goals and strategies.
Therefore, it is important that you understand each of the best financial investments to invest in today.
1 – ACTIONS
Being a partner in companies is always, for many, the best investment alternative. Of course, investing in stocks requires a little more study, but it is not this seven-headed bug that many people say out there.
The biggest risk associated with the shares is that of the bankruptcy of the company that you have shares (in this case, your shares are no longer worth anything). If you think about it, it is the risk that you already take, every day, in the company you work for.
For example, if you bought a stock from a clothing retailer, try to buy another stock in a completely different industry, such as chemical, energy, or mining. In the event of a crisis in one sector, the other still protects your portfolio.
Look for companies with good management, without debt and with profit margins above the market average. You can learn how to analyze companies on expert websites or using analytics applications.
2 – CDB
The CDB is the acronym for the Bank Deposit Certificate. This fixed income security is issued by banks in order to raise capital.
The rate of return of a CDB is usually linked to the CDI, being one of the best known investments in fixed income.
Bank Certificates of Deposit that are issued by small banks typically offer more attractive returns for investors.
In addition, when investing in options that have a longer term of investment, the yield of these securities is also usually higher.
There are four different ways to invest in gold: physical form, contracts in B, ETFs and investment funds.
3 – INVESTING IN GOLD
The first is the acquisition of physical gold. We do not indicate this option for security reasons and for the high custody fees of keeping the asset in the financial institution. In addition, there is a certain type of arbitrage: devaluation at the time of sale and appreciation in the purchase in relation to market prices.
The three types of existing contracts are as follows: Standard 250 gram lot (OZD) 10 gram fractional lot (OZD) 0.225 gram fractional lot (OZD)
We also do not primarily suggest this option for three main reasons: the lack of liquidity, high custody fees for the precious metal and arbitrage in the purchase and sale of the asset (that is, you pay a higher amount than the market price at time to invest and receive less than the market value when disposing of this investment).
The third option is through investment via ETF in an international broker. ETF allocation is beneficial for two main reasons: strong dilution of investment arbitrage and close monitoring of the commodity’s price.
The fourth way to invest in gold is through multimarket funds that accompany the price of the precious metal.
4 – MULTIMARKET FUNDS
Multimarket funds are a great option for investors with a moderate profile.
This is because the risks are diluted, since the administrator may invest in shares, commodities, currencies, fixed income assets, among others.
For those looking to diversify their portfolio without needing a very large initial amount, this is also the ideal choice.
In general, it is important to choose a fund that is aligned with your investor profile and your financial goals.
5 – CRYPTOCURRENCIES
Cryptocurrencies are digital currencies, the most famous of which is bitcoin. They are not issued by any government and are available worldwide.
In addition, they serve as a means of exchange, a store of value and also as a unit of account.
An alternative to investing in cryptocurrencies is through the purchase of shares in cryptocurrency funds.
Another option is to buy “stablecoin” (in free translation “stable currencies”), in which a dollar-backed (crypto) token is issued to reduce the volatility of cryptocurrencies.
It is also possible to invest in bitcoins and other cryptocurrencies through specialized brokers called exchanges.
Putting all these factors in the analysis, does it mean that it is not the time to invest? In fact, there are always good opportunities to invest your money.
A conservative stance, on the other hand, can be a smart strategy.
But that does not mean that you should direct your money only to fixed income.
Being conservative, at this point, means being more judicious, comparing and simulating applications very carefully, choosing assets after an in-depth analysis.
How to invest in stocks
For those who wish to learn more about trading on the stock market at the best and biggest live trading academy in the world, consider taking these basic or advanced courses with the best mentors here.
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