Where to invest for beginners the easy way?


Inflation is one of the biggest threats to savers. Therefore, investing money is more than just a recommendation, and a commitment. However, it is sometimes difficult for most humans to understand investment alternatives, or at best, provide meager returns. But do you know where to invest for beginners?

You don’t have to worry. There are investment alternatives for beginners to easily invest your money without having to give up profitability. Here are some of the most interesting.

Best investment options for beginners

theft advisors

Bots like inbestMe, better known as robo-advisors, is one of the tools that has gained greater acceptance among investors in recent years. To invest in it, you just have to select your own risk profile and your monthly contributions and the bot advisor will pick the portfolio for you.

That is, you do not need to have financial knowledge or be a specialized professional, since the bot-adviser himself is responsible for performing all actions on your behalf, from rebalancing, setting asset weights or choosing the portfolio itself.

To implement portfolio formation, roboadvisors use index funds, ETFs and other financial instruments of a similar nature. In fact, from a legal and tax point of view, they have the same consideration as mutual funds.

Indexed Funds

Index funds are a special type of mutual fund that tracks a stock index, such as the S&P 500, Eurostoxx, or Nikkei. To do this, the fund acquires the same shares and of similar weight so that it is as close as possible to its development.

They are very simple products to understand and follow, as it is only necessary to know the composition of the index in which the index fund is invested to know which assets are part of the fund. In addition, they are sufficiently diverse products and have a low cost, especially when compared with other investment funds.

Download 4 Questions Before Investing

Term Deposits

It’s the classic thrift product for Spanish families. In fact, even the low interest rates that govern the market today have not succeeded in replacing time deposits as a preferred tool for many savers.

Its guarantee, guaranteed by the deposit guarantee fund of each country, its simplicity and ease of contracting, since it is done by the banks themselves, made deposits easy to understand and invest in the product.

However, in a situation like the current one, the profitability that they offer is still very low, especially if it is associated with other investment products. Of course, it is a completely safe alternative that guarantees all your capital.

ETFs

Exchange-traded funds, better known by their acronym in English ETFs or exchange-traded funds, are one of the tools most sought after by beginners. They share some characteristics with index funds, meaning that they are products that replicate stock indices, but also with stocks, since they are listed on the stock market.

Basically, buying an ETF consists of buying an entire stock index in one product, which is also traded during an entire trading session. Investors can buy and sell at any time during trading hours, just like stocks.

Most brokers offer a variety of ETFs that track different geographic and industry indices. For this reason, they are products that are easily accessible and at low cost.

retirement plans

They are products designed to invest in retirement, that is, in the long term. Retirement plans work similarly to an investment fund, but unlike these, the participant cannot dispose of his contributions until he retires or a series of circumstances stipulated by law agree.

In addition, they have a different tax treatment than mutual funds or stocks, since all contributions are deductible in personal income tax, although at the time of recovery, consolidated rights will be taxed as income from business.

In a pension plan, the plan management company is responsible for investing the savers’ money in a series of assets depending on the product strategy and the profitability of the plan varies depending on how those assets are disposed of.

Conclusions on how to invest for beginners

Now you know that there are different investment alternatives for beginners. From inbestMe, we offer the services of Indexed Funds, ETFs and Pension Plans. So you just need to invest with the lowest commissions in the market.

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