It is one of the eternal dilemmas of investors. Whether to opt for fixed income or for variable. There should be no fixed positioning, much less static. It will materialize based on the situation of financial markets. In moments, one financial asset may be more profitable than another. In any case, it will be necessary that you do not have prejudices about any of them. Despite the fact that both have very well defined characteristics.
In addition, you have a very effective strategy that consists of combine both financial markets. It will be one of the most suitable strategies to protect your savings. Not surprisingly, they are investments that can be complemented at any given time. Faced with the real state presented by the main economies of the world. But especially if we are facing an expansive or recessive period.
If you want to make the most correct choice, there will be no choice but to continue reading this article. It will give you the main keys to opt for the most beneficial market. Through a series of products that will be the mediation channels to bring you closer to the world of the world. But especially, so that they have a very definite idea about what you have to do from now on. Surely when you finish reading this information you will reach a conclusion about what is best for your personal interests.
Income: combine both markets
One of the first strategies you can take from now on is to lean towards mixed models. They will pick up the trend of the two financial markets. But how? Well, very simple, through a series of products that collect this particularity of the investment. Mainly with investment funds. It will be an easy way to channel savings through this alternative route.
This is a very special action whose main purpose is not to renounce either of the two investments. As a consequence, savings are diversified under percentages that will depend on the profile of this intermediate investment model. Another formula to meet these goals is a hybrid performance, on your own. It would be based, on the one hand, on their buying shares directly on the equity markets. And on the other hand, subscribing the best fixed income products: corporate bonds, public debt, high risk, etc.
Advantages of equities
These markets are best suited for pick better returns on operations. But be very careful, as long as they are given. You have to assess in many situations its evolution becomes clearly negative and you lose a good part of your life savings. Do not forget it before entering the markets because the consequences can be very dire for your interests as an investor.
Equities are most effective in improving returns. Apply that old strategy that greater risks more benefits there will be in the portfolio. In addition, it implies that you have more proposals to formalize the operations. Not only through the purchase and sale of shares, but with other products. Investment funds, listed funds, warrants and even derivatives are some of the models that you can subscribe from now on.
With the advantage that they do not contemplate periods of permanence in any of the glasses. Thus, you will be able to open and close whenever you want. Whenever financial market conditions allow it. If you are in winning positions you can undo positions at any time. And if not, you can extend the wait to finalize the operations.
Fixed income, when to hire it?
This financial asset, on the contrary, moves under other investment strategies. It is practically impossible for you to generate high capital gains. They move with a margin around 5%. They are safer products, which in most of the proposals offer a fixed and guaranteed performance, in any of the scenarios. Due to this characteristic, it is not surprising that the most defensive investors are the most sensitive to its acceptance.
One way to formalize these operations is through term deposits. At the moment they offer a minimum profitability, as a consequence of the decision of the European Central Bank (ECB) to lower the price of money. Up to levels never seen before, at 0%. Due to this measure, deposits rarely provide interest above 0,40%. Unless the client is linked to his financial institution through direct debit of the payroll or contracting other financial products.
There is another way to get involved in fixed income. It is none other than through Investment funds. However, in this case no profitability is guaranteed, as has been the case in recent years. There are many funds of these characteristics that you can subscribe. Of all the modalities: bonds, public debt and government issuance. Always depending on the profile you present as a saver.
What should you value?
To opt for one or the other investment model, you will have no choice but to pass some filters that indicate which is the most convenient investment to subscribe. In some cases it will depend on the capital available, but in others on the terms you want to give to the investment. In any case, it is always advisable that you heed a series of recommendations that will be very useful to shape your investment portfolio.
- You must ask yourself if you really worth risking your money. It may not be necessary and much more modest profit margins will suffice.
- El international economic scenario It will be decisive to choose the best financial asset at all times. In some it will be the fixed income and in others the variable. You can alternate them based on the conjunctural map of the economy.
- As your savings increase, you can lean towards the models with higher risk, but without unprotecting positions open in the financial markets. Not in vain, it will be your own money that you are gambling.
- A strategy based on the diversification. Without giving up any investment, in the percentages that you deem most appropriate, even equal to 50%.
- That you are a aggressive or defensive investor You may choose to lean towards one investment class or another. Although not in all periods it should be this way since it will be necessary for you to acclimatize to each of the scenarios that are generated in the financial markets.
- In the periods of economic expansion you will have no choice but to opt for equities. It will be a much more effective strategy to make all your savings profitable.
Strategies to undertake
There are many formulas to elucidate which type of income you should choose. Some of them you may have heard before. But in other cases they will be very innovative proposals that will help you, not only to make the savings profitable, but also to protect them in the most appropriate way. These are some of the behaviors that can be exported to achieve the objectives pursued.
You can choose the values that distribute dividends to their shareholders. It is a model by which you will create a fixed income within the variable. You will always have a fixed return on your savings, regardless of the evolution of the prices in the equity markets. In any case, you will generate an annual and guaranteed interest that ranges between 3% and 8%. It will go immediately to your checking account balance.
Another investment strategy on your part involves the need to go changing and renewing the financial products that you have contracted. Depending on how the financial markets evolve, both fixed and variable. In this way, you take advantage of all situations in financial assets.
A very useful alternative that you can use from now on is that one of the rentals serves as complement for the other. It will be a very effective way to protect savings without giving up any financial assets.
A last option that you have to impose these criteria is based on looking for which are the complementary elements. You can combine it without excessive problems. So that in this way you avoid situations that are very complicated for your interests.
What is the best income?
The time has come to find out what is the best income to make investments. In principle they are neither good nor bad. Rather, they will depend on what profile you present as a small and medium investor. In principle, to obtain more capital gains would be the chosen variable. Its potential for revaluation is much broader, in cases even overwhelming. On the other hand, in fixed income, security and the desire not to lose money in operations will prevail.
You will only have to be the one who has to decide this old dilemma that appears with certain frequency. However, you must analyze what is your real situation and what are you looking for through investments. With all certainty that you will reach some conclusion that you will have to put into practice. You may at some point fail in this decision, but it will be convenient for you to stick with it for a period of time to achieve your goals.
Bearing in mind at all times that in the stock market there are times that you win and others you lose. You will have to make these last operations the smallest. So that at the end of the day you have a substantial increase in the current account balance. For this you will have no choice but set goals for yourself. They don't have to be very aggressive. But on the contrary, that they are achievable through the investment strategies that you apply to operations.