At a time when annual inflation is around 2%, it is wise to invest and not let your savings lie fallow. There are plenty of opportunities to invest and value money. We have selected six investment options for you. Which will be the most advantageous for you?
You can easily evaluate your money with minimal risk. “Of course, if you are interested in yielding you have hundreds of percent, you have to take huge risks and lose money,” says Finance Director Matt Helm Jiri Humhal.
No one can predict what investment will be the right one. Therefore, it is important that you invest in multiple investment instruments that reduce your risk.
Savings account is used for savings rather than an investment instrument
According to the name, the savings account is used for savings rather than an investment instrument. People use it to create a financial reserve.
The savings account brings more interest against current accounts, but most of the time it can’t protect your money from annual inflation.
Mutual funds are a relatively traditional investment tool that has a stable market position. Yields from funds are also stable. However, due to the stability and low risk that mutual funds offer, you cannot expect even staggering returns.
Each of the funds has a somewhat different investment strategy and is suitable for another type of investor. “Even before investing in mutual funds, it’s important to find out how difficult or easy it is to sell the investment and get the money invested.
“The yield is around 6%, which offers an interesting appreciation in the medium term in the investment market,” says Humhal. However, if you need to get back to your money earlier, you can redeem your investment to other investors. The added value of investing in loans is the fact that you can support interesting projects or help people refinance their old and disadvantageous loans.
You need a lot of capital to start investing in real estate, which is not for everyone. It is difficult to know what real estate to invest in, and so most people turn to brokers who mediate the deal.
“In recent years, property prices, at least in the Czech Republic, have grown by a few percent. Investors can enjoy high yields. This trend is likely to continue in the coming years, ”says Good Financial. However, with the rise in property prices, the sale, or the approach of investors to invested money, it is easily complicated.
If you choose to buy shares, you will be the owner of the part of the company to which you invest. You are then entitled to a dividend payment – a profit share. Get rich (in the best case) but you can buy and sell the shares themselves, the value of which changes over time.
Price fluctuations are a factor that can make investors sleep. “You can become rich day by day, but you can lose your money just as quickly. The risk of investing in shares is thus proportional to the potential return or loss, ”says Good Financial.
To get into stock trading, you need to keep track of the stock market or contact a broker who handles all the transactions for you. Of course, for the commission.