In the coming days, many companies will make the distribution of profits to their workers. If you belong to this group, you want to invest your money and make it grow, but you still do not know where, here we bring you a list of the principal investment alternatives, which will help you choose the right one for you.
Invest In Mutual Funds
This is a modern and straightforward option to monetize that extra money. What you should know is that this product will let you choose between different types of funds, which will depend on your investor profile and how much volatility (financial uncertainty) and risk you are willing to assume. A lot, little or nothing? According to your answer and the level of your income, you will know what type of financial profile you have, and with it, it will be easier to determine what kind of fund suits you the most.
Remember That The Less Risk You Assume, The Lower Your Profitability Expectations.
- Profile or aggressive Fund: this fund is made for people with a long investment horizon and who can tolerate risks; They are also known as aggressive stock funds. These are the ones that make your money pay more. It is recommended to leave it for more than five years in a financial institution to obtain the expected results.
- Profile or moderate Fund: if you have medium-term goals, such as one or two years and you are not willing to take risks with your investment, this is your profile. Determine why you are putting together that money and calculate your growth to know how much it adds to your goal.
- Profile or Conservative Fund: and if, on the other hand, you can not tolerate the risks, your profile is conservative. This fund grows slowly but definitely, without threats and safe.
Deposit in installments: make your money work for you
A Term Deposit is a product in which you will deliver an amount of money to the financial organization of your choice so that it remains deposited there for some time. In return, you will receive a remuneration of the interest generated on that capital.
This alternative is profitable and safe, without risking your money and with a growth previously established in a contract. The key here is to leave your deposited money as long as possible to obtain higher profits.
We advise you to ask that you pay the interest earned at the end of the term and not in monthly installments, so you save and you will know the total interest generated without risks to fall into the temptation to spend it!
Pay Your Debts
If you have one or more obligations, take advantage of that extra money to pay them. Remember that not always the highest amount is the first that you must cancel, the most advisable thing is to pay the one that lags the most because they have the highest interest rates. Any advance payment of your debts will allow you to make better financial plans in the future.