With each passing year many people want to have a better financial condition. In addition to ensuring peace of mind, having more money will help you carry out personal projects, such as buying a home of your own, a new car or even taking that long-awaited trip
To achieve all this, it is important to maintain a financial plan and, with the accounts in order, look for the best investments to make the money work.
With that in mind, we have selected the 7 most interesting ways to invest your money today, considering the profitability and risks of each of the modalities. Shall we check? Just keep reading!
The 7 best investments
Now is the time for you to know the 7 best investments that you can choose to compose your portfolio. Want to know what they are? See below!
1. Direct Treasure
In a very simple way, the Direct Treasury is a way for the Government to “borrow money” through the issuance of bonds. Whoever buys a bond of this type of investment is giving a certain amount to the Government, which will be returned after a pre-established time, plus interest.
At the moment, to get the most out of it, the tip is to choose inflation-linked or Selic -linked bonds, which offer protection against variations in these rates.
2. CBD
Like the Government, banks need to be borrowed money to finance their credit operations. They do this by issuing Bank Deposit Certificates, known as CDBs. Available in different values, they are also a good option even for those who don’t have a lot of money available to invest.
The yield on these securities is based on the CDI rate (Certificado de Depósito Interbancário), which varies similarly to the Selic rate. The advice to seek greater gains in this modality is to look for banks that offer more attractive rates.
3. LCIs and LCAs
Mortgage Letters of Credit (LCIs) and Agribusiness Letters of Credit (LCAs) are bonds issued to finance the real estate and agribusiness markets, respectively. For those who invest, there is not much difference between the two options.
The gross yields of these investments are usually lower than those of the Right Treasury. However, LCIs and LCAs are exempt from Income Tax, which makes them even more interesting.
4. Actions
Those who have more experience, knowledge, and time can consider stocks on the stock exchange. They are fractions of a company’s capital and, by purchasing them, you acquire the right to receive a share of that company’s profits.
Stocks are highly volatile, which means that yields can go up and down in a very short period of time, making stock owners need to keep an eye on market fluctuations.
To invest in stocks, you must register with a broker. In addition, it is important to keep an eye on those companies that manage to remain consistent, even after moments of crisis. In this case, you must think in the long term about how you can have a good return on the results of the business, through the dividends that are distributed, and not just through the sale of assets.
5. Investment funds
Treasury Direct, CDBs, CDIs, LCIs, and LCAs are applications considered low-risk and offer a lot of security for the investor. On the other hand, those who are open to taking a little more risk need to keep an eye on investment funds.
Funds are collective investments of people who come together to invest in a given market. The equity raised by these investors is managed by an administrator who already has experience in this universe of investments. Thus, he uses this capital from the shareholders to make investments in assets that are part of the class in which the fund operates.
Some examples are fixed-income and real estate funds. See more details about them in the topics below.
Fixed income funds
Fixed-income funds need investments to be made with at least 80% of shareholders’ equity in assets linked to a price index. Therefore, it is an attractive method to diversify your investments, taking advantage of fixed income.
Real estate funds
In the case of real estate funds, investors also apply their resources together with other people, but this time promoting the real estate market. In general, the money raised with this type of investment is used in the construction and acquisition of properties that will lease in the future.
The law determines that 95% of the results of real estate funds are distributed among the shareholders. Of course, this covers both good and bad results. But, controlling risk and having good fund management, is a great ways to build passive income. After all, the income ends up being distributed monthly.
This means that, just as a homeowner receives monthly rent, shareholders receive a distribution of the amount paid for renting commercial buildings, shopping malls, university facilities, and so on.
6. Cryptocurrencies
Cryptocurrencies still present themselves in a very unstable scenario. In recent years, they have made headlines, especially due to the huge appreciation, which reached 1,500% in 2017. Of course, this caught the attention of many speculators. Who suffered an 80% drop shortly after this peak, but returned to value. and keep going up.
7. Investment in foreign currencies
A strategy that may come in handy at this time of economic instability is investing in foreign currencies. There are even investment funds aimed at this category. In this way, investors ride the wave of currency price fluctuation and make money from it. For that, it is necessary to have knowledge of this market and to have professional support.
Thanks for reading this article by ExtNext, hope you will learn something about best investments.
