Five tips to start investing: Starting to invest can be simple and accessible if it is done with the information in hand and with a good understanding of each step that is taken. It is likely that, at first, many doubts arise about the decisions that must be made to start the investment experience, that is why the experts of the financial comparator Asiaglobalbank.com break down the most important advice to make money profitable with confidence and without giving missteps.
Five tips to start investing
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If you are not able to read our five tips to start investing, then you may suffer in investment, so I suggest you read the complete below five tips to start investing.
1. Plan the investment
The first piece of advice is to establish the roadmap that is going to be followed during the time that the money is invested or, at least, the first decisions that are going to be made. For example, you will have to think about how long it will not be necessary to use that money that has been invested. You should also know that the best investment results, if you are not a very experienced user of the markets, occur with a long time horizon (from three or five years).
Also, it is necessary to know that you should never invest all the money saved, but you have to invest a part and leave another part of that money in a safe and liquid product such as an account or a cancelable deposit. Neither do you have to invest the money that you will need in a short time and, in addition, you must always have an emergency fund available for any unforeseen event that may arise.
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2. Choose non-complex products
Once you start reading about investing, many names of entities and types of products will appear where money can be placed. The National Securities Market Commission, that is, the body that regulates investment in Spain, establishes two categories: complex and non-complex products. While Securities and Exchange Board of India, SEBI.
As the experts at AsiaGlobalBank.com indicate, complex products are more recommended for people with experience in the sector, who can make complex decisions on their own and who have the necessary background to understand the markets and their mechanics. Non-complex products (such as mutual funds, index funds, or stocks) are easier for beginners to understand.
To invest you have to be consistent in the contributions
Now, there are companies that allow you to contract portfolios made up of several funds, mainly indexed, and that help clients choose the portfolio that best suits their risk profile. They are the robo-advisors or automated investment managers, such as Indexa Capital. Each of these robo-advisors has between 5 and 11 model portfolios already configured, with different levels of risk, so that they adapt to the investor profile of the person concerned. Each investor is given a test with several questions and depending on the result, they will recommend one portfolio or another.
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3. Pay attention to risk and return
Attached to the products are the concepts of risk and return. You have to keep in mind at all times, before hiring a product, that the higher the risk assumed, the higher the potential return. It is also interesting to analyze the historical profitability that the product has had, although this is not an indication of the future. Each investor must assess whether they prefer to take more risk in order to earn more or if they prefer a less risky and potentially less profitable product.
In the case of investors with a high aversion to risk, you can opt for low-risk investment products and, in addition, combine them with guaranteed savings products, such as fixed terms. Fixed terms pay interest, help mitigate the effects of inflation and ensure that the money will be recovered at maturity.
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4. Look for the lowest commissions
A key point is also to look for the lowest commissions of the product that you want to hire. For example, if you want to buy some shares through an online broker, it is even possible to have zero or almost zero commissions. On the other hand, for the same shares in another entity, they could charge purchase and custody commissions to maintain them.
5. Control emotions
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Don’t forget to control your emotions. During the time that the money is invested (which will probably be several years) the market will go up and down and, therefore, the money will also increase or decrease. The most advisable thing for inexperienced investors is, as indicated before, to consider a long-term time horizon, be patient and respect the strategy.
I hope that if you invest according to the rules, then the chances of loss will be very less. Five tips to start investing.
