At the time of investing without a doubt all without exception we want to obtain the maximum possible profitability by our savings. However, sometimes we do not know how to achieve it. In this article we will explain what paths you can take to invest your savings and get more profitability for them . We will take a look at both the pros and the cons of each operation.
Get the maximum return on your savings
It will undoubtedly have been a complicated task to gather some capital to invest. And now that you finally have a little money that you can play with, you do not know how to do it. Unfortunately, that money will lose part of its value little by little due to inflation . Therefore, it is interesting to invest it to avoid that it is worth less. Of course, you have to do it in the right product. To opt for one or the other option, you must take into account if you are going to need to use that money in a relatively short period of time. The time factor is undoubtedly very important to opt for one or another investment option.
Among the most common are without doubt the following:
Invest in housing
Despite the housing bubble and the severe crisis we have suffered (and continue to suffer) since 2008, the fact is that Spaniards still rely on brick as an investment method. Approximately 8 out of 10 Spaniards have a property. Around 40% have a second residence. 28% have a house that does not use as a main residence and 10% invests in farms and plots.
Investing in housing, however, does not have to involve buying another property. You can invest amortizing mortgage and reducing the interest or the time of liquidation of the loan.
You can also invest in collaborative websites such as Housers . In this way it is easier to enter this sector because the prices for buying a property are usually quite high and not everyone has enough capital to do it independently.
Invest in a fixed-term deposit
Profiles with greater risk aversion have always felt a weakness for these products. Although it has always been one of the most demanded products by Spanish families today, they are not attractive at all. Do not forget that in the economic reality in which we live, where interest rates are at 0%, it is practically impossible to get some profitability from these investments at this time.
Invest in Stock Market
The Exchange is usually a type of investment reserved for those who have some knowledge. Do not forget that their continuous fluctuations can cause serious losses of money. However, although the risk is greater, since they are assets of great volatility, so are the profits.
Investing in the stock market is ideal for those profiles with less risk aversion. To do so, you always have to have a good advisor. However, it can be a very risky investment now due to the political instability that exists at this moment.
Invest in funds
Mutual funds allow the creation of a diversified portfolio with which to reduce risks. If we do not put “all the eggs in the same basket” even if one investment fails another can save us or leave us the same. This type of assets have attractive tax advantages and to be an interesting investment it has to be very diversified.
Investments can be adapted according to the level of risk that the investor wants to assume. It is always good advice to have an advisor to be able to create a portfolio of funds suited to our needs and profile.