For profitable and profitable investments, not only the rate of return is important, but also other characteristics of the market. These indicators include liquidity. Only highly liquid assets allow the investor to quickly and profitably convert the invested money into cash.
Liquidity is the ability to get cash from financial investments quickly and without significant price losses.
Before investing money, the investor must decide for how long the investment will be made. And determine the ability to quickly get money back in a given period. It is the liquidity indicator that reflects the ability to return the invested money on demand.
Investments help save money and keep it from inflation. The simplest method is bank deposit. You can get money from the bank at any time. Therefore, we can say that the deposit in the bank belongs to highly liquid instruments.
Contribution to an impersonal metal account (OMC) allows you to make a profit on changes in the price of the precious metal. You can cash out the OMS account as soon as necessary. However, you need to take into account the investment period and be sure that you will not need this money in the next year. With an urgent withdrawal of funds, you can lose part of the capital due to the difference between the purchase price and the sale price.
It was profitable to invest in real estate at any time. In the long term, real estate is the most secure investment. To return the money invested in square meters, the property must be sold. This is where difficulties can arise. As a rule, for a quick sale, you will need to set the price slightly below the market price. Much will depend on the location of the property. Consequently, such an investment of money has low liquidity.
The most profitable and risky investments are stocks. Highly liquid shares are always in demand in the market and can be sold quickly and profitably. Demand for low-liquid assets is lower and in case of urgent sale, you can lose in price.
Asset liquidity may vary depending on the economic situation in the country and around the world. When choosing tools for multiplying money, consider several financial indicators, then investments will bring good income and increase your capital.
