Brussels (Brussels Morning) If you are still keeping all your savings in your bank account, you may be making a mistake. With close-to-zero interest rates for over a decade, this option secures no return. Many prioritise security over returns.
However, there are several options available in the investment market that offer great security while bringing better results. Here are four alternative investments that are worth giving a try!
Stocks are well-known fixed-income investments. Generally speaking, these assets are divided into common and preferred. While the former offers even voting power to the shareholder — who participates in making certain decisions in the business — the latter is given higher priority when paying dividends.
To invest in any of these options, you must have a financial institution or stockbroker. This alternative requires knowledge of the financial market and has fairly potential risks. This is because the investments are subject to several factors such as market volatility, dollar fluctuations and crises, among others. Thus, investment in shares is suitable for investors both with moderate and bold profiles.
2. Real estate funds
Real estate funds work as a kind of condominiums. They bring different investors together around a common goal. By buying their shares, these investors can enjoy the results of the real estate market without actually having to buy any real estate.
These funds are managed, which means that there is a professional behind their assembly. Investors must choose funds according to their objectives, always paying attention to the conditions and fees behind each one.
3. Fixed Income Securities
Fixed income is an investment type that favors predictability. Here, the investor receives a fixed periodic interest against a principal amount that is paid in advance. The principal amount is returned to the investor at maturity.
Most of their conditions surrounding the period and investments are already provided before investing their money. That’s why the security of some of its products is compared to that of savings, and may even surpass it.
4. Investment funds
Investment funds are a wild financial market. That’s because they don’t have a specific personality. In simple terms, they refer to raising funds from individuals or legal entities to obtain financial returns from the purchase and sale of securities, shares in other funds and bonds.
To invest money in this type of investment, the investor must acquire shares. The more diversified the fund, the greater the chances that the risks will be diluted.
Regardless of the choice, it is imperative to reinforce the importance of knowing your investor profile and goals. After all, there is no such thing as a better or worse investment. The best alternatives are those that help you achieve your dreams according to your needs.