Before you start thinking about where to invest money, you should first know your investor profile. Keep in mind that all investment products have advantages and disadvantages, there are none that are perfect. But if you know your profile as an investor well, it will be easier for you to find the investment modality that best suits your needs.
How to determine the investor profile?
100% safe investment never exists . In fact, profitable investments are often the most risky. This implies that if you are a conservative investor, who does not want to take too many risks, you will not obtain too much return.
If you are an investor with more resistance to risk, you will surely earn more money, but in this case you will also need to have more capital to invest and diversify.
What to invest in if you don’t want to take too many risks?
The average saver who is looking for where to invest money tends to opt for products that, although they do not have a very high return, offer greater security in return.
Today the safest investment products are the following.
- Fixed-term deposits.
- Paid accounts.
- Pension plans.
If you are looking for something with a medium risk and a higher return, your option may be investment funds . You have a wide variety of them to choose from, with more or less risks. The advantage is that a manager is in front of them, so you don’t have to worry about anything.
Decide first the amount you want to invest and define your investor profile based on the risks you want or can assume. Also take into account the objective you are looking for when investing your savings and if the result you want to obtain in the short, medium or long term .
The most advisable thing is not to invest in products that you do not understand, no matter how profitable they may be.
The more complex an investment product is, the more it requires the investor to be aware of possible fluctuations.
Before making your decision, it is convenient that you inform yourself well about the products that interest you and even resolve any doubts you may have about them.
The objective is that your investment gives you returns and allows you to meet your objective, but at the same time be aware of where you are putting your money.
Spend time looking for where to invest money and you will surely end up making the right decision.
As always, remember that the higher your credit profile, the better products you can get. Or products with better conditions. It does not matter if we talk about investment, bank accounts, loans or mortgages.