What can you invest your money in wisely and make a profit? The best options
Posted: Wed Dec 11, 2024 10:54 am
Investing intelligently is one of the main objectives of any investor, seeking a balance between profitability and risk. And although there are no magic formulas to achieve this, the truth is that there are some options that are better than others.
Below, we explain five products through which you can invest intelligently so that you can maximize your profitability by minimizing risk and with the lowest possible costs.
Table of Contents
Products to invest intelligently
Investment funds
Pension plans
Exchange Traded Funds (ETF)
SRI investment
Robo Advisors
Invest intelligently through inbestMe
Products to invest intelligently
Investment funds
Investment funds are one of the products in which you can invest your money intelligently . Firstly, because the assets of the participants are diversified in a single product, and most of them have minimum entry conditions.
They also have favorable tax treatment, since transfers between funds are exempt from taxation, and taxes only have to be paid at the time of redemption if there are profits.
The increasing competition between entities, together with the gambling phone number data consolidation of index funds, has caused the costs of these products to be significantly reduced.
In fact, in many cases, their total commissions are less than 1%, a very low cost, especially when compared to other investment products.
Pension plans
Pension plans are products with a specific objective: planning for workers' retirement.
In fact, the capital can only be withdrawn under very restrictive circumstances, the most important of which is retirement, but also serious illness, long-term unemployment, eviction or ten years after the first contribution.
The particularity of pension plans is their attractive tax treatment.
In fact, contributions made to this product are deductible from personal income tax. Currently, they are up to 1,500 euros with a limit of 30% of the net income from work and economic activities of the worker in a fiscal year.
Download 4 Questions Before Investing
Exchange Traded Funds (ETF)
ETFs are hybrid instruments between an index investment fund and a share. Essentially, they are listed on the stock exchange and contain a series of assets that replicate the performance of a given stock market index.
Thus, in a single product, you can invest in a whole basket of shares in real time and knowing their price at all times, as if it were a single share.
The main advantage of ETFs, as with index funds, is their low costs, thanks to their strategy of simply replicating a stock market index.
But, in addition, they are diversified, transparent and easily accessible securities, since they can be contracted from almost any broker in Spain.
SRI investment
Socially responsible investment (better known by its acronym SRI) is a philosophy that has more and more followers.
Thanks to the growing awareness, the main characteristic is that they invest in socially responsible sectors that meet the objectives established in international treaties on sustainability.
This type of investment is increasingly present in different financial products, such as investment funds or ETFs, and is aligned with the objectives of anyone with a minimum of social awareness. And all this without implying a reduction in profitability.
In fact, the MSCI World SRI, an index composed of socially responsible companies, shows a profitability differential of 0.95% in favour of the SRI index. Moreover, over 10 years it remains positive by 0.06% compared to the MSCI World.
Robo Advisors
It is one of the latest products to invest your money intelligently. Automated investment managers, better known as robo advisors , are a type of instrument that automatically invests a participant's savings, usually through index funds or ETFs.
Their philosophy is very simple: invest and forget.
In fact, the investor only has to worry about making the transfer to the account associated with the automated manager.
This is responsible for automatically carrying out the rest of the operations:
Asset selection.
The re-balancing.
The change of weights between different assets to adjust them to the new risk profile of the investor.
Invest intelligently through inbestMe
Through inbestMe you can choose from a carefully selected range of products, including index funds, SRI funds, pension plans and ETFs to invest intelligently.
With greater profitability and fewer commissions, so you can obtain your results in the best possible way.
Below, we explain five products through which you can invest intelligently so that you can maximize your profitability by minimizing risk and with the lowest possible costs.
Table of Contents
Products to invest intelligently
Investment funds
Pension plans
Exchange Traded Funds (ETF)
SRI investment
Robo Advisors
Invest intelligently through inbestMe
Products to invest intelligently
Investment funds
Investment funds are one of the products in which you can invest your money intelligently . Firstly, because the assets of the participants are diversified in a single product, and most of them have minimum entry conditions.
They also have favorable tax treatment, since transfers between funds are exempt from taxation, and taxes only have to be paid at the time of redemption if there are profits.
The increasing competition between entities, together with the gambling phone number data consolidation of index funds, has caused the costs of these products to be significantly reduced.
In fact, in many cases, their total commissions are less than 1%, a very low cost, especially when compared to other investment products.
Pension plans
Pension plans are products with a specific objective: planning for workers' retirement.
In fact, the capital can only be withdrawn under very restrictive circumstances, the most important of which is retirement, but also serious illness, long-term unemployment, eviction or ten years after the first contribution.
The particularity of pension plans is their attractive tax treatment.
In fact, contributions made to this product are deductible from personal income tax. Currently, they are up to 1,500 euros with a limit of 30% of the net income from work and economic activities of the worker in a fiscal year.
Download 4 Questions Before Investing
Exchange Traded Funds (ETF)
ETFs are hybrid instruments between an index investment fund and a share. Essentially, they are listed on the stock exchange and contain a series of assets that replicate the performance of a given stock market index.
Thus, in a single product, you can invest in a whole basket of shares in real time and knowing their price at all times, as if it were a single share.
The main advantage of ETFs, as with index funds, is their low costs, thanks to their strategy of simply replicating a stock market index.
But, in addition, they are diversified, transparent and easily accessible securities, since they can be contracted from almost any broker in Spain.
SRI investment
Socially responsible investment (better known by its acronym SRI) is a philosophy that has more and more followers.
Thanks to the growing awareness, the main characteristic is that they invest in socially responsible sectors that meet the objectives established in international treaties on sustainability.
This type of investment is increasingly present in different financial products, such as investment funds or ETFs, and is aligned with the objectives of anyone with a minimum of social awareness. And all this without implying a reduction in profitability.
In fact, the MSCI World SRI, an index composed of socially responsible companies, shows a profitability differential of 0.95% in favour of the SRI index. Moreover, over 10 years it remains positive by 0.06% compared to the MSCI World.
Robo Advisors
It is one of the latest products to invest your money intelligently. Automated investment managers, better known as robo advisors , are a type of instrument that automatically invests a participant's savings, usually through index funds or ETFs.
Their philosophy is very simple: invest and forget.
In fact, the investor only has to worry about making the transfer to the account associated with the automated manager.
This is responsible for automatically carrying out the rest of the operations:
Asset selection.
The re-balancing.
The change of weights between different assets to adjust them to the new risk profile of the investor.
Invest intelligently through inbestMe
Through inbestMe you can choose from a carefully selected range of products, including index funds, SRI funds, pension plans and ETFs to invest intelligently.
With greater profitability and fewer commissions, so you can obtain your results in the best possible way.