With all certainty that from time to time you will be tired of trading on the stock market to make the savings profitable . Either because its trend is downward, or even lateral, or simply because you are already very fed up with this product. Well, you should know that there is life beyond the stock markets. By having an infinity of proposals investment that can satisfy your demand with special appeal. To the point that your operations can become more profitable than until now.
You need to know these financial products to use them at a certain time. In any case, they will require a greater knowledge of its mechanics. Because in fact, in some of the cases they are much more complicated to handle. Not in vain, you may incur excessive risks that can compromise your positions in particular investments. Since one objective of them is to protect your assets above other valuations. It is something that you have to define from the beginning. Do not forget it so as not to take a negative surprise from now on.
Because indeed, one of the main mistakes of some retail investors is to think that they can only invest their savings from buying and selling shares in the stock markets. And even though it is a very important part of the investment, you cannot forget that you have another series of financial products that can be very beneficial when looking for a higher return on your financial contributions. The only problem you will have is when you have to hire them.
What can you do with the savings?
Capital developed from the beginning is something so serious that you should not leave anything to improvisation. Of course not, and for this, what better way than to analyze a series of savings models that can be very useful at any given time. It does not mean that you trade with them on a regular basis. But on the contrary that you know how to use them. You will always find a scenario where they will be much more sensitive for your application. Most importantly, they will offer you much better profitability prospects than with more conventional products.
The advantage of choosing this strategy for investment is based on the fact that it can adapt to the profile you present as a small and medium investor. Both for the most aggressive users, and for those who show more caution in their dealings with the world of money. Based on this important premise, you will be in the best conditions to develop a correct investment model that takes into account your own characteristics. Not surprisingly, it will also help you protect your positions in the most adverse scenarios for the financial markets.
Why not a bank note?
Of course, it is not a banking product that is well known to many users. But it can meet the demand of the more conservative customers at some point or other. Well, it is very similar to term deposits, but with a substantial difference. It is none other than the perception of your interests. Because they are not at maturity as is usually the case with deposits. Rather, you will receive them at the precise moment of their formalization, as happens with public debt: bills, bonds, etc. This contribution will allow you to maintain greater liquidity in your checking account from the beginning.
Although your remuneration is in the same line as bank deposits, you have a little more resources to raise it. Because there are many financial entities that issue this product. As the terms of permanence are extended, you will have more opportunities that the returns to your savings are more appropriate to your personal preferences. Although do not expect great remuneration that will never occur in a scenario like the current one. For a very simple reason to explain since it is caused by the reduction in the price of money. In the euro zone it is currently at 0%, as a consequence of the monetary policy of the European Central Bank (ECB).
Fixed income traded funds
Another mistake that some investors have is that they can only invest their savings in fixed income through banking products and investment funds based on this financial asset. Of course, this is not the case, since a product such as the exchange-traded fund that satisfies this demand of the more defensive savers. It is an investment model that is a mix between mutual funds and the buying and selling of shares in the financial markets. But with a series of commissions that are more competitive than in these cases.
One of the advantages of opting for this more unique model is that it allows you reach all kinds of financial assets of this nature. Coming from all the major geographic areas of the world. And that you can subscribe it comfortably from your home through the computer in online banking. Because in effect, the only requirement that et will demand is to be a client of the entity and access its contents through a password. In this way, you can choose the exchange-traded fund that best suits your characteristics as a retail investor. Nothing more.
Reversals for unfavorable markets
But what happens if the current situation is not favorable for the revaluation of financial markets? Well, if this scenario is fulfilled, you should not have what can happen to your money. Because that's what the so-called inverse investment funds are for. That is, you will make your positions profitable with the falls of the markets or financial assets. Not only is it a valid system for the bag, Rather, it can be applied to precise metals, raw materials, etc. You just have to be certain that these bearish movements will eventually develop.
Through this investment strategy you can earn a lot of money. Of course more than through the other financial products. But be very careful with your intentions to hire them, because you can also generate serious losses. More than you can imagine from the beginning. It is due to this peculiarity that you should analyze in depth if it is worth opting for this risky alternative. Only the most aggressive investors will be in a position to implement these approaches in their decisions.
Combining it with a term deposit
Banks, to retain their customers, have designed other different formulas so that you can make your personal assets profitable. And one of them comes from the taxes linked to the equity markets. This alternative allows you improve profit margins that deposits offer you at the moment. But in exchange for a series of conditions to occur. Among them, that the price of the securities or stock indices reaches a target. Something that is not always true, far from it.
In any case, it generates a fixed and guaranteed interest rate. Although it rarely exceeds the 1% barrier. But it will help you to boost a savings bag in the medium or long term. Because in effect, they contemplate higher periods of permanence than the more traditional impositions. They range from two to four years, and cannot be canceled, either partially or totally. Being one of the disadvantages of hiring. In addition, it does not imply any kind of commissions, or expenses in its management or administration.
Future options: more sophisticated
Financial designs are being revamped in such a way that even the most sophisticated and aggressive products have been enabled. They are not intended for any investor profile. But on the contrary, they have their main recipients in the most experienced. For a reason that is very easy to explain and that is because the risks are enormous. More than in other financial products, which of course includes investing in the stock market. They are not very inclined for you to contribute a lot of money. The lower your contributions, the less your worries will be from now on.
It is not about models to be operating with them with some regularity. But you can take advantage of it at a specific time. But nothing more since you can leave a lot of euros on the way. Even for a very important part on the capital invested. What's more, you should know how its mechanics are. That is, to have extensive experience in operations. If you do not meet these requirements, you better give up this attempt. Because in all probability you will achieve your goals, if not quite the opposite.
As you may have seen, there is life beyond the bag. Now you only have to choose the best alternative to satisfy your demand. In which you should combine increased profitability with savings protection. It will undoubtedly be the key to making all operations profitable. Of course, you have options to reach this goal, but the interest it will contribute to your checking account will be reduced. In any case, it is not an easy decision to make. But on the contrary, you will need a very detailed analysis, not only about the enabled products, but also about your real needs in the investment world.