Before every person who seriously thinks about their financial well-being, sooner or later the question arises of how to dispose of their savings. Of course, first of all, we are all interested in reliable and most profitable investments. However, both of these criteria are sometimes mutually exclusive. How to choose the right assets in which to invest your personal funds?
Instructions
Step 1
Read the reports of analytical agencies that periodically provide information on the state of affairs in the global financial markets. Data on the rates of economic growth of the most developed countries, credit ratings of the world's largest economies and other data make it possible, with a certain degree of probability, to predict the situation in the investment market.
Step 2
During periods of economic instability, the most reliable decision for an ordinary private investor will be to withdraw funds from the market and place them on a bank deposit with monthly interest. The deposit should also assume the possibility of closing it if necessary, because the market situation may change for the better. This type of investment of funds combines the lowest risk of loss of savings and relatively low profitability.
Step 3
Another option for placing funds is to buy a certain type of currency. With this type of investment, you should at least have an idea of the long-term trends in the foreign exchange market. In order to assess trends in the foreign exchange market, you can use data from fundamental and technical analysis. Both types of analysis, however, require special knowledge, experience and cannot guarantee a break-even investment in currency.
Step 4
If you are risk averse and choose a one-year investment horizon, invest in consumer, metals, oil, and pharmaceutical stocks. You should buy shares only when sharp fluctuations in securities prices subside and come to a stable state.
Step 5
One of the principles of investments with controlled risk is the division of investments into parts. So, you can invest in the purchase of various types of currency, and use part of the funds to buy bonds of companies with a high level of government participation, which will reduce the risk of loss of investments.
