It is clear that each investment profile has a different treatment to channel its investments and make the savings profitable at the maximum intermediation margins. From this approach we will develop a series of strategies in investment specially designed for them. In this way, you will better optimize the management of your personal or family assets so that in the end you have a higher balance in your checking account and that is, after all, what it is all about.
In addition, using this system to position yourself in the money market, you will have less problems to suffer losses in your income statement. Among other reasons because your investments will simply be adjusted to your real needs. Without you having to take excessive risks, only those derived from the investment itself. Where it is very important that you have your own product based on the characteristics that you have as a small and medium investor that you are. So that in the end the results can meet the expectations created.
On the other hand, it cannot be forgotten that a good part of the mistakes investors make They derive from not having subscribed for the appropriate investment product. This is very common among users, who also formalize them without having the desired financial knowledge. With a result that in the end is not the most desired for their personal interests, in many cases with handicaps in operations. To avoid these incidents, we are going to offer you what your investor profile is and what product you should hire from now on.
User Profile: Conservative
It is where most small and medium investors belong where their main objective is to preserve their money over other more aggressive considerations. The idea of obtaining a minimum profitability, no matter how low it may be, prevails after all. In this sense, there are several products that satisfy this need on the part of retail investors. One of the most relevant is undoubtedly long-term bank deposits, which offer a return on savings of up to 0,5%. With the assurance that upon maturity we will recover the entire investment with its corresponding interest.
This product on the other hand can subscribe with different deadlines of permanence depending on the needs of its holders. From just a few weeks to a maximum of 4 or 5 years where the money will remain totally immobilized until its completion. One of the advantages of this type of investment is that they do not require commissions or other expenses in their management or maintenance. That is to say, it is a savings model that will not require any outlay as happens in other formats to make savings profitable. You will only be penalized with a fee for its partial or total cancellation.
Intermediate investors: some risk
In this class of profiles, they are already in a position to assume a little more risk, but without excessive joys. One of the models that meet these less demanding expectations are mutual funds, but in their mixed and fixed income version. Where the investment can be diversified with other financial assets, even from equity markets, although with a not very striking percentage. You have many funds with these characteristics and they have been designed by both national and international managers.
Despite being a very limited product in risks, it does not mean that you can lose money in taking positions. Because in effect, it can generate a negative return although in a certain way controlled by the very nature of the investment. The main drawback of these investment funds is that they provide commissions that can reach up to 1,50% of available capital. Higher than in the purchase and sale of shares on the stock market and that require prior information on your part so as not to take any other negative surprises from now on.
Aggressive investor, more risks
As is logical to understand in this class of investors the risk grows progressively. In order to improve the return on the savings invested and that lead to you having to expose more in your positions. Therefore, in this case you have to go to the equity markets and where the purchase and sale of shares on the stock market is the investment product par excellence. It is a cyclical investment since its best performance occurs in the expansive periods of the economy. While on the contrary, in recessive stages it tends for its prices to depreciate, in some cases with great intensity and where you can lose half the money you have invested.
On the other hand, investing in the stock market can be modulated if you have it in the medium and long term, which is where the risks in operations are most limited. While on the other hand, it allows you to have a complete liquidity about open positions since you can exit and enter the equity markets at any time you want. With commissions that will be based on the capital invested, but generally close to 30 euros for an investment of approximately 5.000 euros. To go up progressively as the investment is more powerful from the monetary point of view.
More aggressive operations
Small and medium-sized investors with a more aggressive profile and whose desire is to take risks in order to obtain excellent capital gains are located on another step. They do not care about the risk in the operations, but on the contrary what they want is to obtain a better result in the open movements in any kind of financial markets. In this sense, there are many products to take positions in an effective way for the interests of retailers. An example can be represented by investment funds in international or emerging equities. Which is where higher remuneration can be achieved, although at the cost of raising the risks to unimaginable heights.
Another of the aggressive products par excellence is undoubtedly warrants. In this case, it is a question of derivative financial products that are characterized by being negotiable in the form of a security that offer their owner the right, but not the obligation, to buy or sell a certain amount of asset. Through the positions known as call and put, respectively and that can be adjusted to the investment needs of their own holders. It is true that you can earn more money than through other investment formats, but for the same reasons you cannot leave many euros on the way. They are only aimed at investors who provide extensive financial knowledge and high learning in their operations.
Pure and hard speculation
If finally, what you want is to hit the table and monopolize a large capital of money, you have the option of the virtual currencies or cryptocurrencies. But in this case, the risks are no longer under control because it is maximum, where you can also lose everything you have invested, than double or even triple your initial investment. It is very convenient that you know that you are not facing an investment to use, but rather speculation to the maximum and in a financial market that is characterized by extreme volatility in the conformation of its prices. Where none of the previously defined profiles enters their positions and that actually explains what you are risking when entering these trading places.
This is what happens with some of the investments that are fashionable among speculators, bitcoins or other currencies with similar characteristics. Through various financial platforms that allows taking positions in these very special financial assets. But these investments can also be channeled through derivative products, which are very complex models and do not have the knowledge of many small and medium investors. Not in vain, you have to know how to operate with these products because if you cannot leave a lot of money in the positions. In addition, it is essential that the entry and exit prices are adjusted to optimize the final results.
While finally, there is always the resource of opting for the foreign exchange market. It is very flexible and you can choose many currencies: dollar, French franc, Norwegian krone or even the Japanese yen. But it is not as simple as it may seem at first. If not, on the contrary, it requires a lot of agility in the movements since the fluctuations are constant and often with a lot of volatility. To the point that you will need a lot of experience operations to lean towards this alternative form of investment. Although it is a more or less conventional financial asset that has existed for a lifetime.