Where you invest now depends a lot on your investment motivation. In the long run, an investor can invest very differently from an investor who wants to use their money flexibly and as quickly as possible.
Before you start investing, it is a good idea to look closely at what types of shares you should invest in right now.
Good Finance is thinking about current investments , so if you are considering starting an investment or expanding your existing portfolio, you may want to check out our tips.
Equity investing – how to invest in equities
Not everything is worth wading in at once, which is the safest way to diversify your placement. When investing at regular intervals (time spread), the risk is reduced, of course, at the expense of any profit.
Not everything is worth investing in, as stock prices fluctuate naturally and not all companies make a profit for their investors. It is advisable to invest in equities by diversifying investments into at least five properties.
When you select the items you think are modest and invest in them sensibly, dropping one or two of your investments does not make the entire portfolio a negative sign.
For example, investing in a stock market should be reserved for several years. In this case, even if the prices fluctuate, the long-term development may still be upward. The investor cannot be frightened of stock market fluctuations, but must learn to follow them.
You can also try investing in index funds. The Index Fund does not take a stand on stock options, but invests in equities according to the weight of the index.
There is no active trading in equities, but weights are only changed if the index changes. The costs of an index fund are low, making it a relatively inexpensive option for the investor.
Other investments besides shares
If you do not consider investing in equities now, or consider equity investing for one reason or another too risky, there are many good alternatives to these. Typical investments in the Finnish market are apartments, which many are investing in right now.
The most profitable investment in a home is likely to come from a renovated property in a good location. Conveniently handy, you can get a renovated home cheaply and, if the renovation is done by yourself, save a long penny. The price of a superbly tuned home can be delayed above the purchase price and the profit margin increases.
Another traditional Finnish investment is exotic forest. Of course, you can also invest in forests by investing in companies that own the forests, if you do not actually seek to own the forest.
However, the most important thing is to understand where to invest. It’s not a good idea to rely on golden sales talk, but you have to do the background work yourself. Otherwise, investing is already close to lottery.
Financing of investments
The best way to start investing is to think about which shares to invest in right now and how much you are ready to raise. Or is equity investing even a form that suits you or you want to start investing in, for example, an apartment.
Investing in equities may not require as much leverage as investing in real estate or housing, for example. Especially if you decide to start carefully. It is not at all uncommon to use leverage to help you invest, but you have to be prepared to take a little more risk.
If you are investing through loan financing and it is not a mortgage loan, it is of course a good idea to choose the most affordable option. Unsecured loans as leverage of investment are a cheap option, as this will prevent the investor losing his collateral if a potential loss hits.