There comes a time of year is where it is much more difficult to manage investments, and most importantly, protect them from possible adversities in the financial markets. It is about the summer, those months, in which even the most expert investors want to spend a few days of greater tranquility with their family or friends. Despite everything, it will be a period in which precautionary measures must be taken. With a very clear objective, and that is none other than to preserve savings.
It will be a few months, in which it will be a priority opt for safety rather than the performance your savings can offer. There will come times when exposure to equities is greater, and above all, with the desire to take more aggressive measures to make the assets profitable. In any case, it will be highly advisable that you pay attention to a series of useful tips that will help you achieve your goals during these months of the year.
Financial markets, especially equity markets, tend to bring many negative surprises during these very special months for all savers. The last few years are full of such an event in the markets has made small investors lose much of their money, while they were quietly on the beach, or in another vacation destination. It is something that you should avoid at all costs this year, since you have enough mechanisms to avoid it.
Products to save savings
Your first priority will be none other than opt for the safest investment models, and if it can also be profitable, then better than better for your interests. Not surprisingly, you will be playing a lot at this time of year. And it is not a question of wasting money, far from it. To do this, you must develop a certainly balanced investment portfolio. And of course a change in your investing habits. Keep in mind that these months are not the same as the rest of the year. At least when it comes to investing.
What kind of products should you choose in this unique investment strategy? There are several models that can benefit you a lot during these months when you will be on vacation, perhaps in another destination. You have to concentrate your savings on them, depending on the profile you present as an investor: aggressive, conservative, intermediate, etc. And that will be basically the following that we expose you.
Deposits: you can contract an imposition of one or several months duration. It is true that the return that you generate to your checking account will not be anything spectacular, with no more than 0,50%, but at least you will have the security that you will recover the amount invested when you return from the holidays, and with minimal interest, although guaranteed. You can even formalize a promotional deposit, which have very short terms of permanence, no more than 3 months, and which offer a higher return. In some cases can reach up to 1,50%, and without having to link to other banking products.
It is a very appropriate investment strategy for more defensive clients, who do not want to be exposed to the uncertainties of the financial markets, especially at this time of year. You have a wide range of offers that have been designed by banks for new customers. And that in any case, are affordable for all households, from minimum subscriptions starting from only 1.000 euros.
Mixed investment funds: if you want to have positions open to equities, you can do it through this financial product. Not in vain, combines it with other financial assets from fixed income. This strategy of the management companies gives greater security to savings. It is true that the returns through these funds will not be very high, but the losses will be remarkably limited. In addition, you can close positions at the same time that you consider it appropriate.
The offer of investment funds of these characteristics is very wide, with the notable presence of any asset intended for investment. And where you will be the one who has to make the decision about which mixed funds should make up your investment portfolio this summer. To the point that you can dedicate much of your savings to these intermediate designs. It will be highly recommended that among several of these products that are very similar to each other, you will choose the ones with the lowest commissions.
Within these financial products, you can opt for more aggressive models than others, but they are more likely to protect savings in the most adverse scenarios of financial markets. Without the need to allocate all of the savings to equities, or to more sophisticated models, which carry great risks in their operations.
Monetary funds: If there is any design that ensures stability in your checking account during the summer, it is precisely these funds. It will be difficult for you to obtain capital gains in open operations, but it will provide you with the same balance in the accounting of your monetary contributions. The only risk you have is that you hire it in a currency other than the euro (Swiss franc, US dollar, British pound, etc.) that could lead to an unforeseen situation as a result of the high volatility that these assets present at the moment.
It is a savings model that, due to its special characteristics, closely resembles term deposits. Not surprisingly, a large part of the savings from these products has been directed to monetary funds. It is one of the more conservative alternatives that you have now to spend a vacation with greater peace of mind, without being aware of the evolution of any financial asset.
Change management during the summer
Another measure to make your savings profitable during the holiday period will come, not only from the choice of the best products, but also from a change in the management of your savings. It will be of special incidence in these months, where safety prevails over profitability. And in any case, it will be given by the following lines of action that you will have to take this very difficult year for investment.
Look for flexible models: it will be practically essential that you opt for formats that adapt to all the circumstances of the financial markets this summer. In both bullish and bearish scenarios, at times as prone to volatility as the summer months. And from this point of view, absolute return funds can be the best solution to safeguard your savings. They are the best survivors in any setting.
The offer is not as wide as in the previous proposals, but you will have enough solutions to allocate a part of your personal assets to these investment models. With the security that you will not have very striking losses, and you can even accumulate some profitability for when you return from the long-awaited vacation this year.
Diversify investment: the strategy that you should use this summer will be based on diversifying all your investment. Do not keep your savings in a single product, much less in a listed security, but there will be no choice but redistribute it in various financial formulas. It will be desirable that you combine variable income with fixed income, and if you can even with alternative cut models. Not surprisingly, it will become one of the keys to protecting money from possible turbulence in the financial markets.
Dedicating, in any case, a minimum part to the bag. You will have time when you return from vacation to change your strategy and increase your positions in this financial asset. During these months, the options that will be chosen by you will be the most conservative possible, above those shown in other periods of the year.
Maintain some liquidity in the account: summer is a very prone part of the year for expenses to increase: vacations, leisure, meals, etc. This should help you do not have invested all the money, far from it. At least a very important part of your account should be in your checking account. Not only to meet these needs, but also to protect your savings from the vagaries of the markets.
In addition, there are a few months where frequently a series of unforeseen expenses appearYes, they didn't count in your budget. You cannot go on vacation with just enough, since then you may have more than one problem. Even that leads you to undersell your investments at any given time. A healthy balance will help you achieve these goals without much difficulty.
Do not disconnect with the information
Take your mobile: on your vacation trip you should not forget your mobile phone so that you can operate more easily from any destination, even if you are outside of Spain. And at any time you can develop any kind of banking operations, even canceling a product if necessary. You can also check the evolution of your investments at any time.
Another of its applications is that if business opportunities appeared in equities during the summer, they would give you the opportunity to give the purchase order, without having to wait for the return of the holidays. Any time delay can make a difference of many euros. And because through the mobile you can solve it instantly, even if you are in the most remote place in the country.
It will only be left that you find the correct formula to at least maintain your heritage during these special days that you will dedicate mainly to leisure and to be with your loved ones. And the best way will be by preserving money, through the different strategies that we have explained to you.