With a little practice, you can become an investment expert. Do not be afraid of the terms of the market.
It does not matter if you have $ 500,000 or $ 10 million, investing will always be better than leaving the silver depreciating under the mattress or in savings accounts that in addition to not generate any profitability, you discount taxes such as 4 per 1000.
So whether you are new to the subject and want to take the big step, or have already soaked a little, this information will help you feel more confident when investing and especially to choose the product that best benefits you.
First of all, you have to know that there are two types of investments. The fixed income and the variable income. Fixed income investment instruments are debt issues made by the Nation and the companies, aimed at participants in the capital market.
You can sell and buy securities directly with the entities that are supervised by the Financial Superintendence of Colombia, among which are the credit institutions, the fiduciary companies, the stock brokerage companies, the independent brokerage firms, the management companies of pension and severance funds, insurance companies, the General Directorate of Public Credit and National Treasury of the Ministry of Finance and Public Credit, the Social Security Institute – ISS, the Financial Institutions Guarantee Fund – FOGAFIN, the Financing of the Agricultural Sector – FINAGRO and the Bank of the Republic.
For the most conservative savers, this is the most striking option since they are instruments with a low associated risk and a profitability that, although reduced in comparison to other types of investments, is known in advance. The bonds that are granted give the right to collect the interests and the capital in the future and the collection of interest is determined for the entire life of the issue.
On the other hand, there are the instruments of variable return or also called financial assets in which neither the return of the invested capital nor the return on the asset is guaranteed. We do not know the interest that they are going to pay us, even if the return is negative and we lose money on the investment. This is because profitability depends on various factors such as the evolution of the company, the economic situation, the behavior of financial markets, etc. Stocks, currencies, and commodities are the products that offer the most profitability.
When it comes to investing in variable income, it is best to go to the bank or a professional advisor, with the ability to offer a solution tailored to your profile and your particular investment objectives.
Where to invest?
To know where to invest, you must make a thorough study of the market, making a good analysis of your economic possibilities, your appetite for risk and your profit objective with the operations that you are going to carry out.
Everything depends on the tastes, their economic capacities and their preparation and financial experience. The only clear thing is that the less you risk, the less will be the booty (if it comes to be).
If you are going to invest in CDT:
-In general, an investment is profitable when its profitability is greater than inflation. This, because inflation is the loss of value of money over time. For example, if a product rents 6% and inflation is 3%, the real return on your investment is 3%, because of 6-3 = 3. It’s low, but it’s safe. In the very long term, equities are the only asset that manages to beat inflation.
-It is important to see the rating of the entity that offers the CDT, the better the risk rating you have, whose maximum can be triple-A, it means that it is more solid and that your investment is safer.
If you are going to invest in commodities:
- Take into account that there are f external actors referring to geopolitical, climatic and conjunctural issues that can affect the behavior in the prices of goods. A clear example of climatic factors that affect the prices of raw materials is the “El Niño” phenomenon that has occurred in previous years, which has caused droughts and other variations that directly affect the production of raw materials.
If you are going to invest in the stock market:
- Diversifying is paramount. So you will not lose all your capital in one go. On the other hand, if you bet all your money on a single investment, and it goes wrong, that’s where the problems will start. When you see that an action goes up, consider selling at once.