For many experts, 2022 is seen as the year in which the health crisis will be over. However, high inflation and economic growth, which is currently well below forecasts, will be the main factors that will determine investments in 2022. However, there are still some alternatives to safely invest 10,000 euros or more.
Table of Contents
The best products to invest safely in 2022
Fixed-term deposits
Fixed-income investment funds
Savings insurance
Guaranteed funds
Invest safely in 2022 with inbestMe
The best products to invest safely in 2022
2021 ended with a declaration of intent from the world's major chinese overseas australia phone number data central banks. The Federal Reserve raised interest rates and cut back on purchases, and the European Central Bank postponed the end of its pandemic-related purchasing program to March 2022.
This aggressive withdrawal of stimuli, motivated by runaway inflation, will have an impact on fixed income and safe investments in the coming year. Below, we show you some of the safest alternatives to invest 10,000 euros in 2022.
Fixed-term deposits
Fixed-term deposits are products marketed by banks that offer a predetermined return over a predetermined period. In essence, you give up the availability of the money during the term of the deposit, although there are some products that allow early withdrawal without penalty.
They are safe products that have additional coverage, that of the Deposit Guarantee Fund (FGD) of the country where the bank has its headquarters, which covers the first €100,000 per account holder and institution.
According to data from the Bank of Spain, deposits with a term of more than two years in Spain offer an interest rate of 0.47% at the end of October 2021. However, increasing competition between entities, together with the foreseeable rise in rates, will accelerate their profitability in the coming months.
Fixed-income investment funds
Another option to invest 10,000 euros safely is through fixed-income investment funds . These are instruments that invest in a series of safe assets, such as public debt and private debt of different types and terms, such as ten-year Treasury bonds from Germany, the United States or Switzerland, European bonds linked to inflation or bonds from large companies, among many others.
They are usually a type of investment that serves to complement investors' portfolios with variable-income assets to improve their profitability. The policy of this type of fund is not to invest more than 25% in variable income, so their profitability is almost always positive.
However, the fact that they are fixed-income instruments does not mean that they are guaranteed or that they will always obtain positive results. In fact, in recent years, fixed-income funds have even been characterised by offering negative returns. In addition, they can also suffer from market volatility, although with much less virulence than in the case of equity funds.
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Savings insurance
Savings insurance is a type of life insurance marketed by insurance companies. Its main characteristic is that it allows for guaranteed returns through the payment of a periodic premium, normally by investing in conservative financial assets. Its average term is approximately 2 years, so it offers medium-term liquidity.
Although they are normally configured as a conservative profile product, with a low risk, in recent years alternatives have appeared that allow investment for other types of savers, such as PIAS or unit linked .
Essentially, they share several of the characteristics of a fixed-term deposit, although they are quite different products. The fundamental difference is that, in the case of savings insurance, there is no entity that guarantees the capital to the insured. However, they must be supervised by the General Directorate of Insurance, which, in turn, depends on the Ministry of Economy.
Guaranteed funds
Guaranteed funds are a type of risk-free investment instrument that also includes insurance that aims to preserve the participant's capital, discounting the commissions and associated expenses of the product. Consequently, the returns are never negative, and the participant can know in advance his or her profitability, however small it may be.
However, these types of products usually have a guarantee expiry date on which it is guaranteed that the fund's shares will reach a certain net asset value. Only those investors who maintain their investment on that date will be able to benefit from these conditions.
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