The summer holidays are here once again, and the eternal problem about which products will be more beneficial to make the savings profitable. And in this way, take advantage of these well-deserved rest days to dedicate them to leisure and maintaining friendships. It is a period of the year that requires its own characteristics to save money with sufficient guarantees. And if it can be optimized through a better performance. In any case, it will be an easy one to fulfill due to the special scenario it presents this year. Although it will be necessary to try, there is no other option to improve the balance of your checking account.
The safety and protection of savings should be the main common denominator of your actions. I know what profile you present as a small or medium investor. Not in vain, it will be preferable to comply with the previous contributions than to seek an excessive profitability. On the other hand, it will be very difficult for them to appear in an unfavorable scenario such as the summer months. It is something that you will not be able to oppose, and less during this exercise.
It will be a few weeks, where you will have more to lose than win, do not forget it at any time, since it will be your money that is at stake in this ordeal that you can do to the equity markets. And it is that after the holidays have the largest checking account balance, or at least in the same situation. Faced with this peculiar scenario, you will have no choice but to be a little more defensive in your performances.
Where should you invest?
It is the first approach that you should make, and not easy to resolve. For it, it will be essential that you set yourself some minimum objectives, but from a realistic perspective, and not at all utopian. In this way, you will be eliminating certain investment strategies that will not be favorable at all for these particular interests that you have imposed on yourself before going on vacation, together with your family or friends.
Conservative strategy: One of your goals for this time of year is to preserve savings. And what better way than through a short-term deposit, between 1 and 3 months, with which you can make your savings minimally profitable. To make up for the low performance of these banking products, you can lean towards the offers for new clients that banks have been developing and that They offer interest close to 2%. In addition to obtaining a fixed and guaranteed return, you will have the necessary liquidity for what may happen to you during these days.
And you can be completely unconcerned about the evolution of the financial markets, since you will only have to wait for their maturity to collect the agreed interest. You will have time later to drive other more demanding investments, if you want to improve profit margins in operations. During the summer it will not be the right time.
Intermediate strategy: you can always use mixed investment funds to increase your capital. Combining fixed income with variable income through the portfolios currently offered by investment managers. In this way, you will be in a position to expand your profits, and without having to expose yourself to excessive risks in the financial markets. However, this investment bet will require a little more time to stay.
Depending on the profile you present, you will be able to opt more for one financial asset than another, and in the proportion that you consider appropriate. Not surprisingly, these funds generate funds of this nature with various compositions, which they will adapt to your needs, and especially during your days of absence at this time of year. If you want to be calm, and at the same time improve your positions in your checking account, you should not forget this investment approach.
Aggressive strategyIf you still want to maintain your positions in equities, you can do so, but trying by all means to preserve capital. You have different ways of formalizing it. One of the simplest is through more secure securities, and that are not exposed to extreme fluctuations in their prices. Power companies are one of the options you have to pick up on this trend. They are usually quite stable in their stock market behavior.
Securities with high dividend yield is another of the alternatives that you have for this coming summer if you do not want to take excessive risks. Y that you can earn an interest close to 8% that you can collect regularly every year. In any case, above what the main savings products currently offer you (time deposits, bank promissory notes or public debt, among others).
Protect savings
In any case, a primary objective of your performances this summer will be to preserve the heritage, and above other more pretentious considerations. And from this strategy try to get some performance, no matter how minimal. With greater caution than at other times of the year. Not surprisingly, the volatility of the equity markets can harm you in achieving your goals for these special days that occur every year.
To avoid falling into situations that are undesirable for your interests, there will be no better way to avoid them than by trying to prevent the mistakes that you could make in past years. Surely you have learned your lesson, and it will be time to apply it in your next performances to make the money saved profitable. Some of the most important would be the following:
- Do not try to achieve in a few weeks what you have not achieved in many months. Impatience is a bad strategy to boost your investments, much less in a few days as special as these.
- It wouldn't be a bad idea give you a few weeks off and forget about everything related to investment. There will be enough time, when you return from vacation, to resume this activity with greater energy, and why not effectively. Now will be the time to enjoy leisure, and especially friends.
- The worst of the scenarios that can be presented to you is the contracting of very aggressive products, that require excessive attention on your part. It is not the best time of year for you to dedicate yourself to monitoring the financial assets that make up your investment portfolio.
- It would be a serious mistake think about excessively fast or rigid periods of permanence that may hinder operations in the equity markets, even with the possibility of generating losses in such a short space of time.
- During these weeks a very useful strategy will consist of place an order to limit losses of all your operations. And in this way, you only assume the lowest percentages of these bad operations. Do not forget to formalize them, as it can save you from taking more than one big scare this coming summer.
- Try to diversify your investments by all means. And avoid concentrating all your money in a single security or financial asset. It will be one of the channels you have to preserve capital in a much more effective way, and more during these days.
Some investment ideas
Not everything is concentrated in equities, since you have other products to channel savings in a very rational way. And they can help you to improve your current account positions when you return from vacation. If not substantially, but at least to give you the odd whim from the month of September.
Invest your savings somewhere deposit that is tied to equities. On the one hand, you will have a fixed and guaranteed return. And on the other, you can extend it if the conditions of the contract are met. Most banks are launching products of these characteristics through a very wide offer.
The excellent evolution of gold in the financial markets can be an excuse to take positions in this financial asset. You have many ways to do it, although the most practical may be through investment funds, or even better listed ones. In addition, you will not be affected by negative events that may influence the evolution of the equity markets.
If you are going to invest your money in these weeks when you will be away from home, try not to make it all of it. All you have to do is dedicate 20% to satisfy your needs, since you will be preserving the capital in a completely correct way. Liquidity should be the common denominator of your checking account status.
If you follow some of these tips to the letter, surely this year the return operation on the Spanish roads will not have an added problem, and you will only have to concentrate on returning to the daily routine of every year.
But if it can be with a somewhat larger balance, then better than better, to encourage savings. Although it will always be more important that you keep the initial capital destined for investments. You will surely remember how in previous years the markets have been very upset, and how they have given you more than one dislike. You should not forget it if you want to defend your interests in the best possible way.
In addition, you will be able to resume your investments with your usual activity, and even analyzing which are the options that best suit you at all times. And always in a restless way, and not like now, in which you will have to plan the trip that you are going to make with your friends or family.