Where to invest in a crisis
The issue of preserving and increasing equity capital is always particularly acute during an economic crisis. The unstable financial situation in the country and the bitter experience of default create a real panic among Russian citizens. And even that category of citizens who boldly declare that “they have nothing to lose” are in constant search for the best investment options. Thanks to the development of the banking structure and business, today every capital owner can find a worthy use for it, ensuring for himself and his family a secure financial future.
Investments in all forms require a certain economic literacy from the capital owner and the ability to analyze the current situation. Therefore, choosing where it is better to invest money now should take into account several basic aspects. They, in the future, will help to choose the best option for investment.
The main aspects for choosing investment tools. Examples of investing money
Today, there are more than a dozen types of investments. They are distinguished by complexity, degree of profitability and the minimum amount of investment, so before you decide at random about where to invest money in a crisis, determine the main parameters of the planned investment:
Investment size.
This is a key parameter for each capital owner. It is he who largely determines the possibilities of future investment. If your capital you plan to invest is in the millions, then your possibilities are truly endless. In this case, financial experts and experienced investors, recommend to make an investment portfolio. Thanks to the optimal ratio of low-risk and high-risk investments, even in a crisis you can not only save but also increase your capital.
If you are not an experienced economist and do not have a staff of your own financial advisors, then the best ratio of risky and low risk investments will be 20. In the economic environment there is a widespread opinion that 80% of efforts yield only 20% of the result, when 20% of efforts bring all 80 % However, we should not forget that there is always a risk of losing your capital, with excessive arrogance and craze for high-risk investments.
Therefore, when investing, you should focus on investing in low-risk projects, such as securities, real estate purchases and bank deposits. The remaining 20% of capital is worth investing in more liquid instruments, such as currency or venture capital investment. Thus, you will observe the harmony of risks, and will be able to save your money and get a good profit.
In the event that you have a small free capital, then your investment opportunities are somewhat limited, and you should focus on investment projects with an average degree of risk. For this perfect investment of money in bonds and opening a deposit account in a bank.
Assessment of own abilities.
This important aspect will allow to narrow the range of choice of variations for investment. Of course, for an experienced economist who does not have an “entrepreneurial spirit”, it simply makes no sense to invest in someone else’s business or open one’s own. This is a direct path to bankruptcy. If you do not possess pronounced makings for a particular type of activity, then it is best to follow the path of least resistance and invest in the least risky projects that have passed the test of time. Buying real estate or opening a "gold account" will allow you to securely save your savings during a financial crisis.
Determine the terms of investment.
Each current and potential investor is concerned not only with the reliability of the investment, but also with the time period through which the efforts will pay off. Therefore, before investing money, you should determine after what period you want to get your savings back. For those investors who plan long-term investments (from one year or more), the investment options are much more. In addition, practice shows that it is long-term investments that are most profitable.
If you do not plan to part with your capital for such a long time, then turn your attention to a new type of investment - investment in PAMM accounts. This method of investing appeared not so long ago, and is based on trust management. You trust your savings to an experienced trader of the currency exchange, and you consistently receive interest from the profits from his trading on currency fluctuations. This type of investment is risky, so you should carefully read the variety of PAMM accounts, the experience of the managing trader (all this is available on the official websites of broker companies) and, if possible, invest in several PAMM accounts, different managing traders. So you reduce the risks, and you can consistently make a profit, and, if necessary, always return the invested funds, simply removing them from the deposit.
Today, there are a lot of investment options, and there is no unequivocal answer to the question where to invest money in 2015. It all depends on your abilities and capabilities. It is they who determine which investment tools are right for you. Nevertheless, we should not forget that the issue of investments should be approached carefully, after weighing all the pros and cons. Due to the diversity of banking products, even the most inept financier has the opportunity to safely invest their savings for the required period. The liquidity of such investment instruments leaves much to be desired, but their reliability and stability always remains on top. Rationally distributing your capital and responsibly approaching the issue of investment, even the most global crisis will not affect your wallet.
