In this article we will guide you through some the most profitable financial investment products. When investing, please remember that your capital is at risk, and you may receive less that you originally invest.
Investment product is an umbrella term for funds, equities, pension plans and other financial instruments that people invest into hoping to earn a profit. There are many options available and each one of them depends on the investors’ risk profile and investment goals. For this reason, the first step before choosing the best financial investment products for you is to have your goals and strategy well defined. Here are some of the most popular investment products:
Why invest in mutual funds?
A Mutual fund is an investment that pools money together from different investors to purchase stocks, bonds, or other assets. It is a great option for those who want to focus on diversification, convenience, and lower costs. Mutual funds can be:
– Fixed-income mutual funds – Lower risk, designed for a low-risk profile. In addition, they usually pay a set rate of return.
– Variable income investment funds – Profitability is not assured, designed for a higher risk profile.
Why invest in shares?
A share stands as a unit of ownership in a corporation or financial asset, in other words it means a proportionate stake in the equity of a company. Depending on your goals you can chose from buying a smaller or a larger unit of shares.
Some of the main benefits of investing in shares are Capital Growth (Selling a share for more than you paid for is known as Capital Gain), Dividends (at the end of each financial year if the company is profitable, it will share dividends with its shareholders), and Liquidity (if a share is listed it is by nature a liquid product, which means you can disinvest at your convenience).
Why invest in pension plans?
A pension plan is a long-term investment where you regularly invest a small premium to build up your plan. The longer one stays invested the more likely it is to gain, due to the benefits of compounding. No matter your age or where you are in your career, the time to think about your retirement is now.
If you don´t know where to invest, we can help you. At Altarius we offer you a professional and personalized service. We’ll help you establish a strategy and decide where to invest to get the most out of your assets.
When investing, your capital is at Risk