Bonds are also among the investment products with the lowest risk both Treasury Or Corporate Bonds. These are debt securities. This means that the entity that issues them undertakes to buy them out after a certain period of time. One of the most reliable bonds is those issued by the state treasury.
Investing In Government Bonds
Investing in treasury bonds is not associated with a large profit. Currently, the interest rate on securities issued by the Ministry of Finance ranges between 1.5percent. for 3-month bonds, and 2.7percent. for 10-year bonds. It is, therefore, lower than the interest rate on some deposits and savings accounts.
However, when you decide to invest in government bonds, your profit is almost certain as the guarantor is the state. Although, of course, there are situations when the state treasury turns out to be insolvent, for example in 2001 Argentina did not have enough funds to buy bonds from its creditors.
Investing In Corporate Bonds
Apart from treasury bonds, there are also corporate bonds. Private companies are their issuer. Investing in corporate bonds can be more profitable. They simply earn higher interest. However, buying them also involves greater risk.
It is too hasty a move to completely abandon corporate bonds, which are the source of income for many companies and investors. However, remember to invest your money through various channels. This way you minimize the risk of losing all your savings.
Investment funds
As part of the investment fund, you can invest money in various types of units, such as:
- stocks of companies listed on the stock exchange,
- Treasury bills,
- bank deposits
- other financial instruments.
When choosing a fund, you do not have to worry about the question “what is worth investing in?”. Specialists from the investment fund company will take care of it for you. This is a good way to multiply money for people who have little knowledge of the markets and investments. The risk in funds is effectively eliminated thanks to investing money in various types of instruments.
You can buy investment fund units directly from an investment fund company or from intermediaries. The sale is carried out by banks and brokerage houses. You can also shop online.
Investing in currencies
Is it worth investing money in currencies? Yes, provided that you take the time to learn about the rules of the market and that key decisions are preceded by long-term observations. The currency can be purchased at a bank, in a traditional or online exchange office. However, the most profitable way to invest in currencies is the Forex market. To start earning on Forex, you need to find a brokerage house where you will open a transaction account.
All Forex trading is online. Start by trading virtual currency, which will allow you to gain experience and learn the terminology and rules of Forex. Unfortunately, the odds are often speculative and hard to predict. Certainly, when deciding to enter Forex, you need to carefully follow the economic information.