Today there are many ways to invest capital profitably. Investors have many different investments to choose from, which can be roughly divided into two different groups. Namely in an investment in the account and in an investment in securities.
- Securities carry a certain amount of risk.
- They offer the opportunity to generate a good return.
- Securities are particularly recommended for income-oriented and opportunity-oriented investors.
- The best-known securities include stocks, bonds, funds and certificates
What are securities?
In contrast to an investment in the account, which can be, for example, a savings book , a call money account or a time deposit account , securities are in most cases endowed with a certain risk. The higher the return , the higher the risk. In spite of everything, securities are an ideal investment forum. Because the investor himself can control what risk he wants to take and what return can result from it.
The most popular forms of security include financial products such as:
- Federal securities
According to digopaul, the individual securities differ in terms of their characteristics and properties as well as their possible returns. Federal securities, for example, are considered a particularly safe form of investment, but offer only a low return. In return, stocks or funds as well as certificates are significantly more risky, but also have the opportunity to develop above average and generate a particularly high return. As an investor, you first check which product you want to use and then decide how high the risk should be. An investment should only take place if the selected product and the risk and thus also the return fit together.
Buy securities properly
We Germans tend to like to save a lot. But often the savings are not used in such a way that they can multiply. They are stored in savings accounts with poor interest rates or are left to the current account, which offers no interest at all. The focus is on convenience but also the fear of losing money. However, if you don’t let your money work, you lose capital every year. Just because of inflation, which averages 2% per year, the savings are permanently devalued.
You can take countermeasures with the purchase of securities. It is true that the broad masses cannot make friends with this topic yet. But in times of low interest rates, securities are the glimmer of hope. Securities have great potential and generate good profits if risk and return are well balanced. In order for securities to be bought, a securities account must first be opened.
The opening of a securities account
Securities can be bought in different ways. Some investors go to their bank or savings bank and leave the purchase and maintenance of the papers to the bank. Other investors want to buy securities themselves and therefore turn to a direct bank or an online broker. In all cases, a securities account must first be opened, which is used as a storage space for the securities. Without this deposit , no securities can be bought, held or sold.
When choosing the right securities account, the costs and fees as well as the special offers must be kept in mind. Here it is important to compare in advance and to examine different offers more closely. Once a securities account has been opened, the selection of suitable securities can begin.
Trading in securities is usually based on creating a portfolio that is as diverse as possible. The more diverse the portfolio, the lower the risk and the more stable the return. Experts recommend not just investing in one company in the form of stocks, but considering different companies and using different funds and bonds. It is important here that, as far as possible, only money is invested that is not needed for any other purpose in the long term. For a good return to develop, stocks usually need to be held for an extended period of time. This is the only way to balance losses and profits well and to end up with a solid profit for the investor from the whole thing.
Securities equals retirement provision
When securities are bought and invested at a profit, they can be an ideal retirement plan . However, trading must be started in good time and it must be ensured that as little loss as possible is made. Either an expert is commissioned with the trade or you take care of it yourself.
Those who take care of it themselves must be aware that securities trading never sleeps. You have to deal with it permanently, keep an eye on the prices and have to be able to assess how securities develop over time. This is the only way to assess whether the securities should be held or whether a sale makes sense.
Those who do not trust themselves trading individual securities and would rather choose a simpler investment strategy can easily invest in ETFs on a regular basis. Regular savings can generate a small fortune.