The best options to invest and multiply your profits
Posted: Thu Dec 12, 2024 3:08 am
If you have some extra money or want to start making money out of it, you are probably interested in knowing which are the best options to invest in order to multiply your profits . Below, we are going to explain some of the most important ones, regardless of your risk profile.
Table of Contents
What kind of investor are you?
The best options to invest: The five best
Actions
Investment funds
ETFs
Derivative instruments
Real estate or real estate
Pension plans
Invest your money with inbestMe
What kind of investor are you?
Before you learn about the best options for investing, you should know that there are different investment profiles depending on your risk aversion and how much you want to risk your money. In this sense, there are at least four types of investors:
Conservative investor: who prefers to preserve his capital, even if this means giving up higher returns. He usually invests in medium and long-term fixed income.
Moderate investor: who wants to obtain higher returns at the cost of assuming greater risk. However, he is not willing to risk too much. He prefers mixed products that contain a combination of fixed income and variable income.
Risk-taking investor: one who takes on greater risk and aims to obtain the highest possible return. Invests in equities and, sometimes, in the short or very short term.
The best options to invest: The five best
Although there are a wide variety of ways to invest and make your money profitable , we will explain the five most interesting ones in Spain.
Actions
Shares in listed companies are the asset class par excellence chinese overseas australia database for equity investors. It involves investing in companies with the hope of future appreciation, which may be higher or lower depending on the type of company, the sector in which they operate and their growth potential.
Furthermore, thanks to shares, investors can participate in the company's profits through dividends. They are generally designed for a medium-high risk profile.
Discover your personalized plan
Investment funds
Investment funds are instruments that are increasingly in demand by investors thanks to their efficiency, the wide range of possibilities they allow and their favorable tax treatment.
Any investor, whatever their risk profile, can access an investment fund that suits their needs: fixed-income, variable-income, mixed and even guaranteed. Furthermore, as they are made up of different assets, they are products that are sufficiently diversified, which mitigates their volatility to a certain extent.
ETFs
ETFs or exchange-traded funds are a hybrid product between shares and investment funds. On the one hand, they are instruments that replicate stock market indices like index funds and, on the other , they are listed on stock market sessions like shares.
Their appeal is explained by their low costs and easy access, since they can be invested in through any broker. In addition, as with investment funds, they are quite diversified, which is always attractive for investors.
Derivative instruments
Investors with a riskier profile sometimes opt for financial derivatives, which include warrants , options, contracts for differences (CFDs) or futures, among others.
Their value is based on the price of another asset, known as the underlying asset, and can be shares, stock indices, fixed-income securities, interest rates or even commodities. Their risk is high, especially since investors sometimes use financial leverage to multiply their profits, even at the cost of assuming a much greater potential loss.
Real estate or real estate
This type of investment involves buying a real estate asset, such as a house, apartment, commercial premises or land, to later sell it at a higher price, and/or rent it out and obtain an income.
This is an option that many investors turn to because they are acquiring a physical asset, and in many areas its risk is quite limited, because the value of the properties tends to increase over time. However, it requires a fairly significant initial outlay, as well as good knowledge of the market in order to be able to correctly choose the property to be purchased.
Pension plans
Just like investment funds, there is a wide variety of pension plans designed for investors with all types of risk profiles. They also have favourable tax treatment, since contributions are deductible from personal income tax up to €2,000.
Its biggest drawback is its lack of liquidity. It can only be repaid in a few very restrictive cases, especially retirement, permanent disability, eviction or 10 years after the first contribution. However, in terms of profitability, it is an interesting option to multiply your earnings.
Invest your money with inbestMe
Thanks to inbestMe, you can invest to obtain higher returns with lower fees. You can start investing with our index funds, pension plans or ETFs in a simple way. You will only have to answer a few simple questions, obtain your personalized plan and start investing from €1,000.
Table of Contents
What kind of investor are you?
The best options to invest: The five best
Actions
Investment funds
ETFs
Derivative instruments
Real estate or real estate
Pension plans
Invest your money with inbestMe
What kind of investor are you?
Before you learn about the best options for investing, you should know that there are different investment profiles depending on your risk aversion and how much you want to risk your money. In this sense, there are at least four types of investors:
Conservative investor: who prefers to preserve his capital, even if this means giving up higher returns. He usually invests in medium and long-term fixed income.
Moderate investor: who wants to obtain higher returns at the cost of assuming greater risk. However, he is not willing to risk too much. He prefers mixed products that contain a combination of fixed income and variable income.
Risk-taking investor: one who takes on greater risk and aims to obtain the highest possible return. Invests in equities and, sometimes, in the short or very short term.
The best options to invest: The five best
Although there are a wide variety of ways to invest and make your money profitable , we will explain the five most interesting ones in Spain.
Actions
Shares in listed companies are the asset class par excellence chinese overseas australia database for equity investors. It involves investing in companies with the hope of future appreciation, which may be higher or lower depending on the type of company, the sector in which they operate and their growth potential.
Furthermore, thanks to shares, investors can participate in the company's profits through dividends. They are generally designed for a medium-high risk profile.
Discover your personalized plan
Investment funds
Investment funds are instruments that are increasingly in demand by investors thanks to their efficiency, the wide range of possibilities they allow and their favorable tax treatment.
Any investor, whatever their risk profile, can access an investment fund that suits their needs: fixed-income, variable-income, mixed and even guaranteed. Furthermore, as they are made up of different assets, they are products that are sufficiently diversified, which mitigates their volatility to a certain extent.
ETFs
ETFs or exchange-traded funds are a hybrid product between shares and investment funds. On the one hand, they are instruments that replicate stock market indices like index funds and, on the other , they are listed on stock market sessions like shares.
Their appeal is explained by their low costs and easy access, since they can be invested in through any broker. In addition, as with investment funds, they are quite diversified, which is always attractive for investors.
Derivative instruments
Investors with a riskier profile sometimes opt for financial derivatives, which include warrants , options, contracts for differences (CFDs) or futures, among others.
Their value is based on the price of another asset, known as the underlying asset, and can be shares, stock indices, fixed-income securities, interest rates or even commodities. Their risk is high, especially since investors sometimes use financial leverage to multiply their profits, even at the cost of assuming a much greater potential loss.
Real estate or real estate
This type of investment involves buying a real estate asset, such as a house, apartment, commercial premises or land, to later sell it at a higher price, and/or rent it out and obtain an income.
This is an option that many investors turn to because they are acquiring a physical asset, and in many areas its risk is quite limited, because the value of the properties tends to increase over time. However, it requires a fairly significant initial outlay, as well as good knowledge of the market in order to be able to correctly choose the property to be purchased.
Pension plans
Just like investment funds, there is a wide variety of pension plans designed for investors with all types of risk profiles. They also have favourable tax treatment, since contributions are deductible from personal income tax up to €2,000.
Its biggest drawback is its lack of liquidity. It can only be repaid in a few very restrictive cases, especially retirement, permanent disability, eviction or 10 years after the first contribution. However, in terms of profitability, it is an interesting option to multiply your earnings.
Invest your money with inbestMe
Thanks to inbestMe, you can invest to obtain higher returns with lower fees. You can start investing with our index funds, pension plans or ETFs in a simple way. You will only have to answer a few simple questions, obtain your personalized plan and start investing from €1,000.