[Economics] Five types of investments that do not imply greater financial risk

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It is common for consumers to confuse when an expense is equivalent to an investment.

There are several investment alternatives available in Ecuador. Although due to the financial problems of each person, there is not always the intention to invest due to fear of loss or indebtedness. Some even confuse spending with investment.

It is common for consumers to confuse when an expense is equivalent to an investment. In this case, an investment represents a benefit in the short or long term, instead, the simple expense is equivalent to the use of economic resources to obtain something that does not represent an advantage for the person.

Spending removes capital. It must be very clear that when making an expense, it will not be recovered, but rather something is received in return (satisfaction or purchase). On the other hand, when making an investment, you pay for a good or a service from which you will have a certain return. This can be the same, although the best thing is to increase it.

“The investment supposes a generation of profit in the future. Under my belief, the most convenient investments are those that allow the generation of more sustainable benefits, such as education, because it represents an improvement that is sustainable over time”, indicates the dean and professor of Finance at the Universidad del Río, Francisco Parodi.

It is important to invest in secure mechanisms, for which it is necessary to investigate all the options in depth: what they consist of, how they work, what are their guarantees and support, in order to avoid losses or scams.

“Although there are several options to invest, due to ignorance, few people in Ecuador invest in specialized tools to attract investments. Financial education is the best weapon against possible scams and the best ally to achieve a secure return”, explains Esteban Correa, assistant commercial manager of the Andalucía cooperative.

 

The most profitable and low risk options
1. Term investments:

The banking system and the po[CENSORED]r and solidarity economy sector, without a doubt, are the safest mechanisms to invest, thanks to the formality and legal scheme that control them, as long as it corresponds to duly registered entities. Within this alternative, savings cooperatives are the best option for investments, since they offer a better rate of return on money with a level of security and risk rating equal to or similar to that of private banks.

 

2. Actions:

This option consists of buying shares of companies, which make you a partial owner of it, receiving the profits it generates annually. This operation is carried out through the Quto and Guayaquil stock markets, which will direct them to the securities houses of the main cities of Ecuador.

 

3. Investment funds:

This mechanism works through a fund made up of resources from several people, the amount of which is used as a source of financing for the companies in which the fund managers decide to invest, which have to pay a percentage of interest for the use of that money. All the information is public, both from the companies that issue debt securities and from the trust companies that manage the investment funds. On the page of the Superintendence of Companies it can be verified since in the country there are around 30 registered and controlled companies that are dedicated to that.

 

4. Real Estate Market:

Although the real estate market can go up or down over time, financial markets analyst José Cuevas considers it low-medium risk. In addition, it is possible to obtain profitability through rentals.

 

5. Investment funds passive:

Known as passive management investment, they are financial products that faithfully follow the evolution of the market. It is a valid investment mechanism, in force and widely used by investors from all over the world, especially those with a conservative profile and who prefer to save the costs of financial advice for making investment decisions through financial markets. Through these mechanisms there is no way to beat the market and generate financial returns outside of the market's own evolution. They can be consulted through the legally authorized Stock Markets that are found on the Stock Market portal.

 

https://www.eluniverso.com/noticias/economia/cinco-tipos-de-inversiones-que-no-implican-mayor-riesgo-financiero-nota/