Rules for investing without risking

High earnings are always risky, you must be aware that they are always associated with the possibility of losing a large part or even all of the capital. Check the solidity of those who issue the securities, constantly monitor the progress of their investments and above all diversify. These are some of the main indications for the conscious saver defined by the Foundation for Financial Education and Savings FEDUF together with consumer associations. This is a pro memoria always useful for those who are not professional investors.

The basic rules for the citizen the investor

  • KNOW THE TYPES OF INVESTMENT. Shares are financial instruments with which we participate in the share capital of a company. Bonds are instruments with which we become creditors of the subject (state, company or bank) that issued the security for a period of time defined by a contract. Mutual funds collect the savings of multiple investors to invest in multiple financial instruments.
  • ESTABLISH THE VALUE OF A SECURITY. Its price relative to inflation, its performance and its liquidity, or its ability to be easily traded on the market, must be taken into consideration.
  • DECIDE THE TEMPORAL HORIZON OF YOUR INVESTMENT. For example, if the time investment is reduced, it is better to make low risk investments, because we will have less time to heal losses with other investment choices. If, however, the times are longer, we can invest a part of our money with a higher degree of risk. In any case, bags must never be treated like casinos.
  • CHECK INVESTMENTS. Even if we have confidence in our bank, we must constantly inform ourselves of our investments, also by comparing ourselves with other operators, and act immediately in case of need.
  • ALWAYS CHECK THE SOLIDITY OF THE ISSUER: an obligation of a historical company, for example, is not necessarily safe. You need to get advice from multiple sources, comparing different information.
  • RECEIVE NECESSARY INFORMATION FROM THE BANK. When submitting a type of investment to us, the bank is required to communicate in a clear and understandable way: the type of instrument, the person who issued it, the market for listing and trading, any potential conflicts of interest, the class of risk assigned by the bank to the financial instrument.
  • ASSESS RISKS AND EARNINGS. The higher the risk, the higher the possible profit, but possible does not mean certain, much less likely. Therefore, there are no easy zero-risk gains.
  • BETTER TO FRACTION THE INVESTMENTS. The more we diversify the types of investments made, between more and less risky securities, the more the risk of losing our capital decreases.

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