With the arrival of summer once again, the problem will increase what do you have to do with the savings. Because in effect, it is a period of the year that is very complicated and that can throw you more than one problem. When what you really need is to spend some quietly with your friends. Also, it is not a good time to make your assets profitable in the equity markets. From this scenario, it is completely normal that you have many doubts about what you have to do in your relationships with the world of money.
One of your objectives in this period of the year is of course to make operations profitable. But in this case, it will not be of minor importance preserve your money over other considerations or more aggressive approaches. For this to be the case, you will have no other solution to vary your investment strategy from now on. Because it is a somewhat special period of the year that will require a substantially different treatment from other months. In order to improve the benefits of your financial operations.
It is true that you do not have as many options as you can imagine from the beginning. But on the contrary, you should look for alternative proposals that until now you had not considered. In any case, you will have no choice but plan investment for this important period of the year. Where you should not leave anything to improvisation, despite having much more time for rest. So that through strategy you can have your deserved reward. We provide you with some other ideas to invest your savings in the summer.
Summer investment: bag
Of course, investments in the stock market must be present during these summer months. But under greater caution due to the special characteristics of this period of the year. To have a calmer summer you will have no choice but to opt for the most conservative strategies. In order to preserve your monetary contributions. Under these approaches one of the first options is to seek the dividend yield. Although in this case, it will be for higher periods of permanence. At least to run it until the end of the year.
If you choose this alternative in investment, you will be able to obtain one of the highest yields in the financial market at this time. Until reaching a return up to 8%, and above that provided by other financial products. Regardless of what its price is on the equity markets. In addition, the values that make this distribution among its shareholders are very solid and stable. Not surprisingly, they are not very prone to perform very spectacular movements. To the point that it is a very effective strategy to develop at this time of year.
On the other hand, it is a very original way to preserve your positions in the financial markets. Another option you have to plan your investments in the summer is look for conservative values that show a weak oscillation in their prices. Through listed companies that do not have heavy indebtedness, or problems in the composition of their shareholders. With this profile you have many proposals for you to open positions in these months. In sectors as important and diverse as electricity, food or highways.
Mixed investment funds
You can also combine fixed income with variable income if this is your wish. Through mixed investment funds. With many proposals that the management companies have been developing. From this scenario, it is a very satisfactory idea to preserve your savings while trying to save the invested equity. With the great advantage of the commissions that you will have to pay for the contracting of these products and that they are not very expansive. Even lower than other investment formulas.
You only have one important dysfunction and that resides in that investment funds are specially aimed at more expansive terms. But with the advantage that you can choose the percentage you want to give to the financial asset that you are going to hire. You have funds of these characteristics that are moderate, defensive, or aggressive. Depending on the profile you present as a medium or small investor. Of course, the profitability that you can obtain through this financial product will not be excessive. But at least it will help you protect your money this summer.
Very short term taxation
If, despite everything, your intention is not to risk the available capital, you will have no other option than to resort to term deposits. But in this case, in a period of one to three years, just a period that lasts the summer. There is a class thing that you have to assume and that is that the interest rate that this savings model will offer you is practically minimal. Where it will be very difficult to overcome the barrier of 0,75%. But instead you will have a fixed and guaranteed return that you will receive in your checking account when it expires. With the security that when you return from your vacation you will recover the contributions deposited.
At this time, banks have generated many impositions of these characteristics. Through various models that try to make your hiring more flexible. One of the most innovative strategies is the one developed under the offers for new customers. So that in this way, exceed the commercial margins offered by financial institutions. To the point that you can get a yield close to 3%. Without any kind of commissions or other expenses in its management or maintenance.
To improve profitability, deposits linked to other financial assets are enabled. Coming from equities, precious metals, raw materials or even in the currency market. It is a financial product with a guaranteed profitability, but in order to improve the return on savings, a series of objectives will have to be met. That on the other hand, not in all cases. Deposits, in short, provide you with many ways to save your savings this summer.
Bank notes: another option
This product can also help you to protect your contributions in these months. But also in this case, under a very weak performance, and always below 0,4%. They have different terms of permanence, from a single month to a longer period. With a similar structure presented by term deposits. But with the difference that you receive the interest at the precise moment of your hiring. Although on the contrary, it does not have the guarantee of those in the event of an unforeseeable process or the bankruptcy of the financial institution.
Rather than generating interest, your true motivation is that you will be calm during the months that the bank note lasts. On the other hand, you cannot forget that it is a financial product that is clearly on the decline among the preferences of small and medium investors. Because at a time when interest rates are at minimum levels, it is not the most recommended due to its special characteristics. Either way, it is another alternative you have for this new summer.
Exchange traded funds: very flexible
But if there is a product that is especially adapted to this period of the year, it is the popular ETF, s. Above all because all kinds of investments are included. From investing in a stock index to taking positions in the commodity market, without ever forgetting bonds or fixed income in general. You cannot forget that exchange traded funds is a mix between mutual funds and buying and selling shares in the bag. Being in any case, a very flexible savings model that can be adapted to your investor profile.
They are available in the offer provided by financial institutions and with commissions that do not stand out for their special price. On the other hand, this product is highly recommended for periods of permanence of between one and three months. Where you can get an excellent remuneration if your portfolio evolves favorably in the financial markets. Although not without risk, especially in some of the most aggressive listed companies. Such as those from equities and other alternative markets.
Finally, you can also take positions in the Forex market. You need few trading sessions to achieve your goals. But either way, you will need more learning to develop your operations. Because in effect, risks are always present in a financial market as peculiar as this is. With greater volatility than in the rest, with very notable differences between the maximum and minimum change.
Not in vain, trading in currencies allows you to make punctual and very fast operations, without the rigidity that some of the financial products that we have exposed to you offer you. In any case, this year you will have no excuse to make your savings profitable, even if it is from different strategies and in some cases completely innovative. Where you will only be the one who has the last decision about what you have or not to do in this period of the year. Or maybe you will also prefer to give rest to your investor facet and in this way enjoy your well-deserved vacation.