The clearest, and at the same time simple, way that you have to invest your savings in the stock market is by directly buying shares of companies that are listed on the financial markets. The vast majority of small and medium investors opt for this strategy in their operations. But what they may not know is that These movements can also be formalized through other alternative financial products, and of a similar nature. Conforming as one of the alternatives that they have at the moment to be present in the variable income.
They are about investment models which are designed for a very well defined investor profile, and ranging from the most conservative to the most aggressive, logically passing through the intermediate levels. All these alternatives are included in their proposals, and they have a common denominator in all of them, which is their relationship with the equity markets. Although from completely different mechanisms and designs, some even divergent. And that can be hired based on the real needs of the clients.
Either way, you no longer need to buy stocks to go public. For several years, new formats have appeared that have won the predilection of users. Some certainly simpler, although most are characterized by the complexity of their operations. And where only investors with more experience will be able to access them with greater guarantees. It is convenient that you know them, in case from now on you find yourself in the need to subscribe them to increase the patrimony. Or directly as an alternative to the traditional bag.
Deposits linked to the exchange
Of all the formats, one of the simplest, and which takes less risk for your interests as a saver, are term deposits. But in this case, linked to financial assets of equities. It is one of the few alternatives that you currently have to increase the performance of these banking products.
It starts from a fixed and guaranteed return, albeit a minimum one, which rarely exceeds 1%. And that it is combined with a basket of stocks or stock indices that are the ones that can improve the commercial margins of the impositions. Provided that the objectives set out in your quote are met. They will not be easy to complete in all cases, and they may even be too demanding, and therefore unworkable. It is convenient that you do not forget it before formalizing them.
This mixed model encourages savings are guaranteed from the start, and that the investor does not have to assume any risk during his term of permanence. Given the lack of performance of these savings products, it is not surprising that a good number of banks have chosen to offer their clients these special deposits. With different proposals that can be evaluated to finally hire them or not. You will be the one who has the decision, based on the models presented through this offer.
They incorporate terms of permanence, not excessively short, nor too dense. Between 12 and 36 months, the period of time necessary for the financial asset to be able to revalue in the financial markets in accordance with the requirements issued by the banks.
Although yes, you will have the savings immobilized during the agreed period. With very affordable minimum contributions for all savers, who they can subscribe them from only 1.000 euros. And of course, as is usual in these products, without commissions, or other administrative expenses or those derived from their management.
In this way, you will be able to position yourself in equities, although without incurring any risk, as we have already commented in this article, having the capital at its maturity. Although on the contrary, you will not be able to capitalize on the upward movements of the markets in all their intensity. Only a part of it, very small. It is the toll that you will have to pay for the guarantee that these term impositions report to you.
ETF, a product on the rise
This class of financial products It is characterized by being a mixture between the classic investment in the stock market and the investment funds. They enjoy a certain predilection on the part of some savers, who see them as one of the most satisfactory formulas to achieve their objectives. And they also have very competitive commissions, and even cheaper than those generated from investment funds.
These alternatives have the advantage that you can opt for any stock market, it does not matter if it is national or is outside our borders. And that allows you to carry out the operation through a perfectly designed investment portfolio. Made up of stocks, sectors or stock indices from almost anywhere in the world. There are no restrictions on your approaches, even some of them from very original and innovative scenarios.
However, are more recommended for longer periods of stay, as is the case with investment funds, in the medium and long term. And that will allow you, at any time, to make an individualized savings bag for the coming years. Even combining it with financial assets from fixed income, if this is your wish. With a very powerful offer that financial intermediaries offer you at the moment. And you can subscribe them from your usual bank.
Investment funds as alternatives
One of the most popular products, and where there are many savers who trust their economic contributions, after the reduction of interest on deposits. Well, through them you can easily invest in the stock market. There are many designs that have been made under this premise. Through flexible, diversified investment portfolios, and even with currency protection. They can be selected based on stocks, or on stock indices. Practically all equities are represented by mutual funds of these characteristics.
They allow you, instead of selecting a single security, to do so through a portfolio of them, and that it is duly prepared by the most important management companies around the world. A real problem is that you have to opt for a fund of your preferences. Not in vain, the offer that these financial products offer you is one of the widest that are intended for investment. From national stock markets to emerging markets, even from very remote countries, or even companies with dividends. There is nothing left for improvisation.
In addition, they have the great advantage that you can transfer them to other investment funds at any time. Without any expenses, nor commissions, with which you will face this operation with a huge preference. These movements are mainly used to update your portfolio in the face of changes in economic cycles, or simply because of the terrible evolution of your current funds. Being, in any case, a very simple financial product to contract, and which is open to all kinds of savers. From the most defensive to the most aggressive, without limitations in their profile.
Warrants, with higher risk
If there is a highly sophisticated product, and whose operations involve excessive risks, that is none other than warrants. They are designed for small investors with more experience in the equity markets, being one of the alternatives to the stock market. Not in vain, high returns can be achieved in your operations, above other products. But in the same way, you can leave a lot of euros on the way, especially if the election is not developed under the required approaches.
And that even lead to you being able to bet on a downward value, taking advantage of the downtrend in financial markets. In any case, if you have not yet operated with these special products, it will be highly advisable not to do so now. The results may not be what you expected, and until you close the operation with a high level of handicaps.
These operations can be carried out from any bank, and with fees in their commissions that move under a marked divergence. In spite of everything, the revaluations that you can generate are higher than in the stock markets, and of course, than in the deposits linked to other financial assets. And where prudence and the protection of your savings will be the main behavior guidelines by which these more complicated operations should be guided from all aspects.
Credit sales
It is another of the products linked to the stock market and which is configured as other alternatives. But like the previous investment model, very prone to risk, or even perhaps more. Not in vain, you will be formalizing operations under financing. And in downward movements, which further aggravates its danger. You will only need to ask yourself if this kind of operations in the financial markets really pays off.
Only through many years of learning will it give you the guideline to channel savings through this unique model that is presented to you from equities. You even need to attend a refresher course in warrants. And that are frequently in charge of creating banks, financial platforms and private entities linked to the world of investment.
Only through the skills acquired will you be in a position to take positions in one of the most sophisticated financial products that you can find at the moment. And in any case, they generate a remarkable offer in their commissions that will help you save a lot of money every year. Although the warrants that are authorized to be contracted do not exceed the offer of the other investment designs (funds, stock market, ETF, etc.). Only your degree to assimilate the risk of operations will be the one that finally determines the convenience or not of carrying out your operations.
But which one is the best now?