05 / 05 / 2021
Every successful businessman, professional or entrepreneur, who has managed to accumulate a larger sum of money, knows what a sense of security such a financial cushion gives. Unfortunately, surpluses that linger in a bank account do not pay off in a noticeable way and are idle. Therefore, it is worth finding a way to multiply, or at least slightly increase your capital through investments. How to safely invest money and multiply your capital? Should you choose a safe deposit, which, however, does not give too much profit? Or maybe it is worth taking the risk and start investing on the stock market? There are many ways to invest - some are riskier than others. Today we will try to find some of the safest options for beginner investors.
Deposit and savings accounts
Some of the safest forms of investing cash are savings accounts and deposits. This is usually the first method reached by newcomer investors. What is the difference between a savings account and a deposit? In a deposit the money is frozen for a certain period of time, after which the profit is paid out. If we don't hold back and want to withdraw our money earlier, such a move usually means saying goodbye to the extra interest. A deposit is good for people who tend to spend money on current pleasures and therefore find it difficult to put aside larger amounts. As for a savings account, it usually has a lower interest rate than a deposit, but its advantage is that we have the money at our fingertips all the time - if we withdraw it for urgent needs, we do not lose the entire profit. Transfers to the account are made by the account owner or you can opt for a standing order. Unfortunately, putting money on deposit, we can not count on spectacular profits. Their interest rate usually reaches 4%. Is it worth then to be interested in this form of multiplying money? The answer is yes! Such forms of investment are a sure, albeit small, profit, especially if you have only a small amount set aside. It is easy to set up, and in some banks you can do it completely online.
Investment funds are for those wanting to invest money like a professional, but who do not have the necessary expertise and experience in the financial field. It is a great choice for beginners taking their first steps in the subject of money multiplication. Earning is based on the fact that fund specialists collect capital from investors, i.e. people who want to invest their cash, and then invest it further. Any extra money that manages to come in this way is split between the capital owner and his fund custodian. Funds are usually invested in treasury bills, shares of companies listed on the stock exchange, bank deposits or other financial instruments. The disadvantage of this type of solution is that their task is, first of all, to invest cash, and the profit or safety of clients is of secondary importance. So you have to reckon with the fact that if the market falls, the investor will continue to trade our funds, which may entail a loss for the person who has deposited his money, so it can be risky.
In our opinion, these are the safest options for novice investors, so if you want to start your investing adventure with minimal risk, then consider the options mentioned above.