One of the strategies available to small and medium-sized investors in order to make their savings profitable without assuming risks is to link fixed-term bank deposits to the selective index of European equities, the Eurostoxx 35. This investment format has the advantage that you will always have guaranteed capital contributed to this financial product and with the possibility of obtaining interest on them. Being available in some of the banks that operate in our country.
This class of impositions requires a basic requirement and that is none other than the stock index to achieve a level in its price. If this is not achieved, only a minimum performance will be achieved, which is below 0,5%. In a fixed and guaranteed way whatever happens in the equity markets. In this way, savings will be guaranteed in an unfavorable scenario for investment.
On the other hand, it is a savings model that is intended for a very well-defined profile of investors. With a rather defensive user model that puts the preservation of its capital first above other more aggressive considerations. Even if it is at the cost of giving up possible increases in the European benchmark index. Because we cannot forget that the maximum interest rate on this type of deposit is 5%.
Eurostoxx 50: rising prices
This financial product is characterized because its contracting does not entail any kind of commissions and other expenses in its management and maintenance. While on the other hand, it has an expiration period that is around 24 and 36 months. A little higher than in the more traditional impositions and that in all cases their partial or total cancellation is not allowed. This is a serious drawback for savers since they will not be able to have their money for a long time. Therefore, there will be no choice but to wait for its expiration. In one of the shadows of this very special financial product.
On the other hand, it should also be remembered that these term deposits have higher minimum amounts to invest. Around 5.000 and 10.000 euros, without being able to renew them at all since they are products that have no continuation over time. Being, in any case, one of the hallmarks of these very special and innovative savings models. As a much more conservative alternative to direct investment in equity markets, in this case linked to the old continent's benchmark, the Eurostoxx 50.
What are its advantages?
The preservation of invested capital is one of the main points of support of these banking products. Because in this way it is possible to eliminate losses in the stock market. While on the other hand, it is possible to generate a greater investment diversification since one or more values of the variable income are not contracted. If not, on the contrary, this action is carried out on one of the most solid indices on the European stock market. Where the 50 most representative equities in Europe are integrated.
Another of its great advantages is that it is not necessary to invest large amounts of money. But on the contrary, it is enough to amounts that are quite modest for all households. In addition, in some cases they are complemented with other financial assets from fixed income and that is what causes that there is always a fixed and guaranteed return at the end of their maturity. Without the commissions and other expenses in its management that has the purchase and sale of shares in the stock market. For a type of user who is not used to investing their money in equity derivatives.
Shadows of these time deposits
It is also true that not all of them are lights in the deposits linked to the Eurstoxx 50, but there are some negative aspects to consider when hiring. One of the most relevant is the one that has to do with losses are limited that can be generated in this European equity market. Beyond other considerations of a technical nature and from the point of view of its fundamentals.
While on the contrary, there are other products of these characteristics that are linked to other international benchmark indices. As for example, in the most representative of the global economy: "Ibex-35 "," Eurostoxx-50 "," Dax "," Dow Jones "," Nasdaq Composite "," S&P " or "Nikkei”. They can be hired based on the investors' preferences or the indications they receive from the financial institution where they are going to hire them. Some are specially made for conservative profiles, while others point towards the more aggressive investors, which implies a certain risk in their hiring.
With a diversified offer
This diversity in the offer means that a wide selection of securities can be found in the market that are listed in the main stock markets of the world, from the “blue chips”From national income (Endesa, Iberdrola, BBVA, Santander and Telefónica) to others more unknown to the average investor such as French, German or even Italian values. In any case, this class of time deposits are based on baskets of securities based on companies of special relevance. With a very high volume of capitalization and that constitute reference sources for all small and medium investors.
So that in this way, strong losses can not be generated in investment portfolios or at least they are more limited. Where its main effect is the containment of possible depreciations that may be generated in this kind of equity markets. As points of divergence with respect to the more traditional bank deposits and in no case under the imposition of commissions and other expenses in their management or maintenance. So that from now on investing in the stock market is much easier than in the direct operations of buying and selling shares.