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Investment Finances 101.

by Admin | September 16, 2021
Investment Finances 101.

Investing will be easier for you if…

To achieve success in an investment it is necessary to know and understand some basic concepts that we give you below:

Investment instrument: It is the means through which you invest your money.
Term: Time during which you keep your money in an investment instrument. Generally, a short-term investment lasts from one day to one year; a medium-term investment lasts from one to five years; and a long-term investment lasts more than five years.
Risk: The uncertainty of knowing how much return you will get on your investment.
Yield: The profit you get for investing your money in an investment instrument.
Fixed income: An investment that when you contract it, you already know what the yield you will obtain at the end of the term will be.
Variable income: It is an investment that when you contract it, you do not know the yield it will generate at the end of the term. It is found in products such as: variable income investment funds.

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How to start investing?

Keeping your financial objectives in mind is the basis for defining your goals. Saving is always an option, but if you want to take the next step you should consider making an investment.

An important difference between saving and investing is that investing always has risks.

The objective of investing is to put the money you have saved into things that will acquire more value over time. Some of these are stocks, bonds or real estate. The key is to buy when the price is low and then try to sell when the price is high. That's how you earn.

To make your money grow, just follow these simple steps:

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Know your financial goals and how capable you are to take risks. Keep in mind that with every investment there is a possibility that something could go wrong.

Take your time to compare alternatives: level of risk, profitability and the terms at which you will make your investment, compare alternatives until you find the one that best suits your needs. Remember that you should never invest in products or businesses that you do not understand.

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Approach those who know, seek professional advice when making an investment, and always keep in mind that the responsibility is yours. To avoid misunderstandings, keep in contact with your intermediary and clearly establish the scope of his responsibilities, freedom to act as well as his style and philosophy.
There are many types of investments, but on average the ones that tend to have the best results are the ones that are made for the long term.
Remember and always keep in mind the three "D" rule: Diversify, diversify and diversify, do not throw all your money in one investment, keep several options open.

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