Have you saved up some money and don’t want to leave it in your bank account? Basically you don’t know how to invest your savings and, above all, are you afraid of risks?
Today we will discuss this topic trying to understand what could be the occasions to invest your savings and, more generally (as far as possible), how to invest them without risk.
Being understood that there are no risk-free investments, it is clear that there are more risky investments and others that are less risky. Where to invest your savings? Let’s see it in this article, but obviously we assume that the decision on where and how to invest your savings is completely personal.
How to invest or where to invest?
The first question you need to ask yourself is how to invest your savings and not where. In fact, once you have answered the first question you can move on to the next.
Why is it important to know how to invest your savings?
Each investor has a different degree of risk: there is the high-risk investor who prefers to try to earn a lot of money, even if there is the possibility of losing the entire capital invested.
On the other hand, there are investors who are not interested in great returns, but are satisfied that savings increase year after year even with reduced percentages.
What kind of investor are you? In the meantime, start from this question and try to give an answer, remember that, as we anticipated at the beginning of the article, the choice is completely personal.
How to invest savings without risks
Investing your savings without risk is a question you shouldn’t ask yourself, in fact there are no zero risk investments. A risk, although minimal and sometimes very low, always exists.
The least risky markets are different, among them we can list:
Bonds, especially government ones, are debt securities. Government bonds from solid countries are considered safer than many other assets. For example, you could consider German government bonds.
The problem? The yield is not only low, but sometimes it is also zero. In fact, the less risky an asset is, the less it pays, it is the law of the market.
Gold is considered the quintessential safe haven asset. What is a safe haven asset?
A safe haven asset tends to grow in value in times of geopolitical and economic crisis.
In fact, the price of gold often tends to rise in those moments and is usually in contrast with the stock market.
It is no coincidence that the demand for gold (physical or in the form of instrument products) increases in times of economic crisis. For example, central banks increased their gold reserves in 2019 during the trade crisis between China and the United States of America.
Read also Investing today: where and how to invest
Investing today with online trading
Many traders today invest with online trading on assets that can give a higher return.
To try to reduce risk, many investors diversify their portfolios, in this way if a market were to collapse, you would have invested in others that are still growing.
This way you can balance the losses with other gains, which would not happen if you didn’t diversify your portfolio.
Among the assets with the highest returns we can find:
- Investment with CFDs
The return (but also the risk) increases depending on the amount invested and, above all, on the asset. Among the shares there are obviously safer stocks (such as big companies) and less secure stocks, such as stocks of companies with great potential, but not yet established.
Forex is a very liquid market and investors often use leverage (CFDs) to take advantage of the rise and fall of currency pairs.
More generally, CFDs are tools that can give high returns, but at the same time they are more risky and accessible to everyone. In fact, thanks to financial leverage, it is possible to invest upwards or downwards in financial assets with small amounts of capital.
We remind that leverage is also a double-edged sword. If it’s true that your gains are expanded, so are your losses, which could lead you to lose your entire capital.
How to invest your savings with online trading? To do this, you need an online broker who can provide you with this service. If you are interested, we now introduce you to a regulated, trustworthy and legal broker.
Plus500: CFD broker
Plus500 is a CFD broker that allows you to invest your savings in different markets.
Plus500 is a broker regulated by CySEC, an authorization that is valid throughout the European Union. It is therefore an absolutely legal broker.
You can invest on Plus500 on many markets with both upward and downward CFDs. The tool is the same one you use with all the other assets on the Plus500 platform, the maximum leverage allowed for retail traders is 30:1, as required by ESMA.
Do you want to try Plus500? You can start with a demo account right now! Click below and open one today!