Investing money in a fund is a good way to preserve and increase it. This method of investment is becoming more popular, since real estate investments provide an opportunity to receive high returns with minimal risk. For example, bank deposits have some limitations. Deposit rates, as a rule, do not exceed the inflation rate. In addition, the threat of bank bankruptcy is possible, and the existing deposit insurance system does not guarantee citizens the return of the full amount.
Instructions
Step 1
When choosing a fund, determine what initial amount you are willing to invest for a period of at least 5 years. Think about how much of your earnings monthly or quarterly you can invest. For example, this will be 15% of your salary. Consider the upcoming costs, as some funds charge a commission on profits or as a percentage of the value of the property per year.
Step 2
After making an investment, do not add up a constant balance sheet to find out what loss or profit you have received for a given period. This will take time.
Step 3
Falling or rising rates occur quite often. Even a reduction can be beneficial to you through the average cost effect. Do not be afraid of downturns and immediately sell your shares.
Step 4
Invest only those funds that will not need to be withdrawn in the near future. Trust the fund management company. It takes advantage of fluctuations in rates to anticipate possible risks, as well as increase the reliability and profitability of the fund.
Step 5
Invest regularly. This is the optimal and stable way, since in reality no one can know with what progression and in what specific period the stock will fall or rise.
Step 6
If you are planning to invest a large amount, then it is not recommended to do so during a period of strong increase in stock prices. A rise may be followed by a certain decline. Invest a flat amount if you want to continually build on your savings.
Step 7
Think about the distribution of risk. It depends on the term of the deposit of funds and the type of funds. Some funds expect to receive long-term investments. But you can also get the highest profit.
Step 8
The activities of the funds are aimed at the benefit of citizens who want to increase their personal savings, having the opportunity to invest non-fixed amounts of money on a stable basis.
