Taking the increase in the cost of living as an argument, the greatest risk is no longer making a financial investment, but being satisfied with salary and savings. No one is truly safe from risk. However, it is possible to limit this by demonstrating objectivity. Thus, investing your own money becomes an alternative that serves as a spare wheel in case of unforeseen events. However, faced with the extent of investment available, it is important to make the right choice. Discover in this article some different possibilities of potentially safe investments.
Scholarship
The stock market welcomes all types of investors every year. With companies multiplying, it’s certainly not stocks that are missing. Indeed, invest in the stock market, is choosing to buy ownership shares in companies. We are also talkingpurchase of shares. For this to be possible, these shares would first need to be listed on the stock exchange. When the condition is met and you own a share of a company’s stock, you become a direct shareholder.
However, even if the shares are part of the best stock market investment optionsthey are not the only ones. Like the others financial products on the stock exchange, you will find SICAVs (Variable Capital Investment Companies), FCPs (Mutual Funds), Trackers and ETFs, Bonds, Binary Options or Warrants. If financial products have been diversified, it is not for simple reasons. Each option has its own level of risk and profitability.
If you want to invest in the stock market, you can go to banks or simply go to stock brokers. It’s really true thatinvest 10,000 euros in the stock market can make you a lot of money. However, the volatility of the stock market should not be underestimated. No amount of money is enough to provide you with short-term and long-term capital gains without a good way to invest. Yes, it is advisable to get help from stock market professionals or take a training course that allows you to acquire at least some basic notions on stock market investments.
Then you will have to collect the capital it takes to make your investment. Again, it’s important to be very careful. Experienced investors will tell you to only invest an amount you are willing to lose. This avoids more complex situations than the ones you are already trying to solve. Finally, it is also vital to define your goals before embarking on the stock market. Only after successfully completing these steps can you effectively manage your portfolio and receive a return that is worth the risk.
Raw material
Invest in raw material, also means investing in the real economy and participating in business development. Commodities have long been a favorite investment vehicle for investors. If you are interested in commodities and want to make them your investment medium, there are a few concepts that should be understood. Before being a commodity, a raw material is first of all a raw product that can be used to design a finished product. Their cost in the financial market is determined by supply and demand.
There are three main categories of commodities. These are especially the precious metalsof the energies And agricultural products. The first category includes gold, silver, platinum, zinc, aluminum, copper, lead, nickel, iron ore or even palladium. Before investing in any of the metals, you need to understand how they work, their benefits and also the different types of possible investments. Gold, for example, is a precious metal that has many advantages.
First, figure it out gold is a safe haven. It is the only form of currency that has survived the world’s biggest crises. This is one reason why banks also invest in gold. For this reason it is a safe investment. Then another advantage of gold is that it is easily tradable in all countries of the world. It has its own tax rules, but that doesn’t bother investors. Finally, gold is easily accessible by both individuals and institutions.
Gold exists in two forms: physical form and paper form. To invest in the first, just buy it and keep it well. As for the second, you can trade on trading platforms through a financial intermediary or intermediary. The second category of commodities includes oil and natural gas. At least, these are the two energy products preferred by investors. Their high volatility allows them to make huge profits and fairly regular dividends.
It’s also the same way they can derail your investment if you don’t make the right choices. Finally, the last category which is that of agricultural products includes coffee, cocoa, sugar, cotton, soy, wheat, corn, rice or canola, etc. The agricultural products market is full of opportunities. However, like the other categories, it is influenced by many factors such as supply and demand, weather conditions, institutional interventions or the evolution of the exchange rate.
real estate
Real estate is a very lucrative market. It also attracts all types of investors. Whether it isBuyfrom salefrom renovation, from Position or even of promotion real estateThey real estate investment solutions there are so many. It is one of the most profitable long and short term financial investments. To make your investment, you can decide to choose one of the options or invest in several options. However, each option has its advantages and limitations.
Optionally purchase, renovation and resale, you buy a property that you think is promising. Then, you renovate it with the aim of increasing its value in order to finally resell it and make capital gains. This type of investment is purely physical and is short-term. To optimize opportunities, you can contact real estate agencies. These brands are best placed to help you achieve your goals, especially when you don’t know much about real estate.
As for the rental option, it is rent a property that you have previously purchased and refurbished. It is one of the forms of long-term investment in the real estate market. In this type of investment, you have two options. You can choose to furnish the rental property or leave it in its original state and let the occupants take care of this detail. Keep in mind, however, that the first rental option will significantly increase your profitability. To calculate it, it is necessary to study the relationship between the cost of the rent and the purchase of the property. You will also need to factor in any costs involved in renting your property such as the restructuring costs o notary and registration fees.
The seasonal rental it is also a form of investment in the real estate market. It works on the same principle as the classic rental with one difference. Unlike the first form of leasing, this one is focused on the short term. It is a short-term investment that optimizes the rental yield. The profitability of a seasonal rental is much higher.
Crowdfunding
Among the most reliable investment options, the fund-raising it is in a good place. called again financing participatory, crowdfunding allows you to invest your money in company or private projects in order to benefit from the dividends obtained thanks to the profits made. This form offund-raising it is very interesting and can be done physically or via platforms. If crowdfunding is so successful it is because access to finance by traditional financial institutions is really difficult.
The working principle of crowdfunding is quite simple. Indeed, companies who wish obtain funding funds to advance their projects they turn to people who can really invest in the project. In return, the company decides to share part of its profits with the participants. This is a good way for investors diversify your portfolio and take advantage of long-term returns. However, like all other forms of investment, crowdfunding also involves great risks.
In fact, before financing a company project, it is advisable to study a certain number of parameters. You have to study the topics and means of the society through his business plan. This allows you to identify any company difficulties and verify the feasibility of the project. You can easily lose your investment (under certain conditions) if the company goes bankrupt make profit. Hence, the basic principle in investing still applies. You must invest an amount of money that you can afford to lose in order to limit your risk.
There are four main types of crowdfunding. These are especially the crowdfundingfrom fund-raising in Actionsfrom crowdfunding with compensation and finally crowdlending. The first type of crowdfunding is charity. These are usually non-profit associations and organizations that finance charities or social projects. The second type of crowdfunding consists of investing capital in a business project and receiving company shares in return.
The third type of financing consists in contributing financially to a company’s projects and receiving in return symbolic gifts such as books, calendars, etc. The last type of financing which is crowdlending or equity loan is to lend your funds to a company through a crowdfunding platform. Having the status of a magistrate, the company is obliged to return the funds to you with interest according to previously defined terms.
