Of course, some products are more suitable than others, especially for small investors with less knowledge of the stock market. Below, we explain some of them.
Table of Contents
When is the best time to invest in the stock market and where to invest in 2022?
Index funds
Robo advisors
ETFs
Pension plans
Investing in housing
Invest through inbestMe
When is the best time to invest in the stock market and where to invest in 2022?
Generally speaking, there are at least three important and decisive factors for any small investor: diversification (funds and bonds ), low costs and a focus on the long term. With these three ingredients, investing, far from being something complex, becomes a simple and almost automatic matter.
There are numerous financial products and instruments that allow you to obtain these benefits. Below we explain some of the most important ones.
Index funds
Index funds are one of the easiest products to understand and invest in. They only replicate stock market indices, so knowing the composition of the index will tell you the composition of the fund and the weights that are applied.
Their main advantage is their simplicity. Since the manager only limits himself to modifying the composition of the portfolio in accordance with changes in the index, their gambling data india phone number responsibility and activity is relatively simple. Thus, they can offer much lower fees than other funds, which in the long term significantly improves the profitability of your portfolio.
Robo advisors
Automated investment managers, better known as robo advisors , are another alternative for investing your savings in 2022. They are a type of virtual manager that takes care of all the actions for you, from asset selection, weight allocation, and rebalancing your portfolio.
Robo-advisors use other instruments to compile the portfolio, such as index funds, pension plans or ETFs. This way, they can offer reduced costs for their participants. In addition, they adjust to each investment, which can determine its risk profile with a simple test. This way, the portfolio can be compiled according to this profile.
Download 4 Questions Before Investing
ETFs
Exchange-traded funds, better known as ETFs , are a hybrid between stocks and index funds, as they share characteristics with both products. On the one hand, because they also replicate stock market indices and, on the other, because they are listed on the stock exchange, just like stocks.
They are characterised by having reduced commissions compared to actively managed investment funds, since they do not require a team of analysts to make decisions, and by having a high level of diversification compared to shares. In addition, they allow other complex financial operations, such as leverage or short positions, although they are not recommended for investors with little knowledge.
Pension plans
Pension plans are an instrument designed to save for retirement . In fact, you can only withdraw your capital if you retire or in other very restrictive cases, such as illness, long-term unemployment, eviction or 10 years after the first contribution.
Its main advantage is its favourable tax treatment. The first €1,500 are deductible from personal income tax, with a limit of 30% of the taxpayer's net income from work and economic activities. In addition, transfers between pension plans are exempt from taxation, as is the case with investment funds.
In addition, pension plans also have an indexed side. In recent years, plans have been launched on the market that follow different indexes, such as the S&P 500 or the Eurostoxx, reducing fees and democratising access to these products.
Index Funds Investment Guide
Investing in housing
Another option is to invest in the real estate market, either by buying property directly or through SOCIMIs or real estate investment funds. On the one hand, because the revaluation of these assets continues its upward trend and, on the other, because it allows you to obtain an income through renting.
However, it requires a high capital to buy the property, something that not all investors can afford. Therefore, real estate funds are an excellent option for those people who want to invest in real estate with small contributions.
Invest through inbestMe
With the help of inbestMe you can invest in a carefully selected range of different products and assets so that you can obtain greater profitability with up to 85% less commissions. Incredible, don't you think?
Don't think twice, take a step forward and increase your profitability by investing in our index funds, pension plans or ETFs.
And now, thanks to our promotion, you can have the first €10,000 without management fees (1st year in the case of index funds).
Remember that it is always a good time to invest in the stock market, especially with these financial products.
