Securities or financial assets are called piggy banks those forms of investment that generate a small return every year, no matter what happens in the equity markets. In the sense that they are very similar to fixed income derivative products that offer an annual coupon that ranges from 1% to 3%. Being an investment class that is aimed at a moderate or defensive user profile. Where the preservation of capital prevails over other more aggressive considerations. They do not want to experiment with their money and therefore go to the safest financial formats.
In any case, there is one thing very clear and that is that at the moment there are different piggy bank assets in the financial markets. And what is more important, of diverse nature to satisfy the investment needs of a good part of the small and medium investors. So that in this way, they can diversify their savings more effectively from now on. Not only from equities but also from fixed income or even from alternative options to expand the decision that small and medium investors are going to make. With greater security in the movements to be taken.
These financial assets are characterized on the other hand by their low volatility since the divergences between their maximum or minimum prices are very small. That is to say, you can be very calm during the period of stay and instead it gives you the possibility of creating a savings bag in the middle and especially long term. Although in any case do not expect to have an excessive profitability because this is not exactly one of its most relevant functions from now on. This is why it has this curious name and by which these financial assets are known that we are going to expose you below.
Piggy bank values: precious metals
These financial assets is one of the clearest cases about this special kind of investment. Because they perform better in the most adverse equity scenarios and therefore are recipients of a large part of the monetary flows of large investment funds, both national and outside our borders. While on the other hand, it cannot be forgotten that these financial assets are very favorable to promote savings, although in this case with a bit more risk in the positions carried out. Not surprisingly, they can offer a very interesting return for the investment expectations of a good part of the users.
On the other hand, the various metals prices is a more specialized investment than in the other proposals in the financial markets. From this approach, it should be noted that gold defends itself well both in inflationary or deflationary scenarios and is presented as an asset uncorrelated with the dollar evolution. For investors who expect a depreciation of the greenback it is a potential source of profitability. Another interesting fact is that for investors in euros the appreciation of gold has been minimal. As a very interesting alternative for the most difficult moments in the international equity markets.
Defensive and high-dividend securities
Despite the general belief of a good part of the small and medium investors, these values can also be found, known as piggy banks, in the stock market. In this case, because they allow the creation of a stable savings bag for the next few years, and with little risk in operations. Because you are listed come from recurring businesses that generally show few debts and instead an improvement in business results. In class sectors such as, for example, motorways, electricity or food. Where a good part of the management funds go in the most adverse moments in the equity markets.
While on the other hand, they also provide a good dividend yield, with an interest rate that ranges between 5% and 7%. Through a fixed and guaranteed payment every year through different payment systems depending on each company. This is a fact that causes a very well-defined investor profile to address them: savers, defensive users and above all the desire to preserve capital over other more ambitious considerations. By developing a portfolio of fixed income within the variable, whatever happens in the financial markets even at the most adverse times for your interests.
Safe national bonds
Within this financial product it is necessary to be more selective in order to have a more secure investment model. Within this group, the best proposal is materialized by the bonds of Germany and the United States which are the ones that represent the most reliable and secure economies in the entire international order. By obtaining a coupon premium that can reach levels close to 2%. That is, it is not very high, but at least recurring over the years, which is what interests the most defensive small and medium investors. Serving as a refuge in the most complicated moments in the investment of individuals.
On the other hand, the bonds of Germany and the United States is a product that is marketed by a wide range offered by financial institutions. So that in this way, users do not have any problem to formalize their hiring from now on. Being a very important part that should be in any investment portfolio worth its salt and with the goal of creating a savings bag year after year. Not surprisingly, this is a financial product that has longer periods of permanence than in the other proposals. With average terms that oscillate 2 and 6 years between.
High-paying accounts
In extreme cases, this option can represent a very effective solution for a good part of our country's savers. This fact is because does not require any conditions to get that more favorable remuneration for the holders of this financial product. At least as long as the promotion that credit institutions have been developing to promote their financial services continues. Without the need to invest a single euro in any model in private investment. Being an option that savers of any profile they have at the moment have.
High-remuneration accounts offer an interest rate that ranges between 1,50% and 2,50%, depending on the proposals of each financial institution. Through payments that can be quarterly, semi-annual or annual and that go to the savings account of the holders on a recurring basis. While on the other hand, it cannot be forgotten that these high-paying accounts require a minimum balance and that it is sometimes very demanding. By having to contribute more than 10.000 euros to open an account of these characteristics. Although on the other hand, it is exempt from commissions and other expenses in its management or maintenance. With a general yield higher than that offered by financial products derived from the fixed income markets and that barely offer an interest of around 1,25% at the moment.
Funds with returns on capital
Another of the strategies that we can opt for is towards funds with returns on capital as a formula to obtain recurring interest every month. Although in this case, this operation is not insured and on the other hand carries a little more risk than in the other models that we have mentioned in this article. Because these mutual funds have a more moderate structure than the rest and can serve even the most adverse scenarios for financial markets, both for equities and fixed income. In addition, it cannot be forgotten that they are very suitable for investors who wish to preserve their savings over other much more aggressive considerations.
While finally, a good part of these investment funds have a dividend distribution every year. With a profitability that is at levels between 2% and 5%, that is to say, lower on average than that offered in the purchase and sale of shares on the stock market. But in any case, they help to maintain liquidity above all else since every year there is a contribution to the savings account of its holders.
Being a model that is more recurrent in investment funds from international managers to the detriment of national ones. Without any increase in the commissions that your hiring entails from this moment on. But in all cases they can be considered as part of the piggy bank assets in the financial markets. As an alternative so that users can deposit their capital that was going to be used for other financial products.