We are always looking for financial instruments resources which allow us to obtain good yield0s. Trying to minimize the risk to the minimum.
To know what are the available instruments today, and what are the most indicated ones according to my investor profile is fundamental. To take the best investment decisions possible.
That’s why today I want to tell you what are all the available investment instruments in the market, and invite you to learn with our articles
Get ready because today we have a great article!
Why do you want to Invest? Would you like to work from home?
Very well known there are two global ways in summarized words, to win money as an entrepreneur or as
There is no need to go deep on this topic, so I invite you to read our article here on our website: What does an entrepreneur need to learn to succeed in business?
And more specifically in financial income.
I want to show you all the financial instruments resources you have at your disposal, in which you can invest and start to generate income today.
I will use a traditional classification for listed; I’m going to use the categories:
What assets are available?
If you do not know what are those about, I invite you to read the article above.
Let’s start with the development of all income assets.
The fixed term:
Deposit a fixed-term eans depositing in the bank an amount of money during a determined period. At the end of the time, the bank returns you back the money invested, plus an extra for the concept of interest. Its to say, at the end always you take more money than you what you invested.
There are different types of a Fixed Term, among which we can find:
With periodic interest payment
With public titles
With redistribution variable
With redistribution in kind
Adjustable for being
Adjustable for being plus adjustable
Transferable and non-transferable
Invest in Bonds
A Bond is a debt title which a public or private entity issues with the purpose of financing itself. The issuer is committed according to the terms of the emission conditions, to be returned to the investor on a given date, The amount received on loan and repay the loan with interest rates.
Most common bonds are:
Rate fixed and floating
Redeemable during life or at the end
Adjustable for inflation
Convertibles with the repurchase option
With an option to resale
Invest in Letters
Letters are short, medium and long-term debt securities. Supported by the central bank or the national treasury. These letters are issued with discount, ie, they amortize the entire capital to expiration, and there are no needs to make payments of interests.
Central Banks issues the most common letters.
The letters issued by the national treasury
Invest in Cautions
Cautions are credit operations. Who needs any amount of money deposits in bail bond financial assets obtaining in exchange a loan at a rate and the term determined from the counterpart, ie, the investor. The bond allows whoever wants to place money to make sort of a guaranteed loan. For the measured assets.
The terms of these operations can be performed in local currency or dollars, goes from seven to a hundred and twenty days.
The most common used guarantees are bonds and shares.
Invest in Deferred Payment Checks.
Thee Deferred Payment Check, represent a payment order, released at a certain date against an authorized entity. In which the withdrawer at the expiration date must
have sufficient deposited funds to its payment in a checking account or authorization to issue openly. In other words, those are checks released by authorized companies to quote their securities by the stock exchange. With a future collection date, which they advance their collecting by negotiating those Deferred Payment Checks in the market and the counterpart, the investor, buys these checks in exchange for future interest rates.
They are divided into two categories:
Guaranteed checks and sponsored checks
Invest in Negotiable Obligations
While bonds are issued by the country or a nearby institution which enabled them.
Negotiable Obligations are private debt securities. Those issued by companies, operational civil associations constituted in the country and for example,
the branches of companies by shares, incorporated abroad.
The types of negotiable obligations are equal to the bonds. Between those we can highlight:
Fixed and floating rate
Adjustable for inflation
Convertible with the repurchase option
With resale option
Invest in trusts
The trust is a legal figure by which a person called the trustor separates from his balance a part of its assets and rights to transmit fiduciary ownership of these certain assets to another one who is called holder fiduciary, who administers these goods in benefits of third parties called beneficiaries.
In fact, with the support of that independent heritage, securities are issued which can be fixed values, fiduciary or equity debt, certificates of participation.
Trust can be classified as:
The variable income
Invest in Shares
Are parts which divide the social capital of a company. Hence having shares of a company and consequently be a shareholder, is usually identified with being a member of it. Its profitability is not is pre-determined.
There are mainly three types of shares:
Which of them can be national or foreign.
Some certificates are listed in the local market and represent actions or a corresponding fraction according to the ratio of conversion of non-domestic companies.
It’s definition of certificated, strictly rooted because they represent shares deposited of foreign companies that have no public offer authorization in a country. Consequently, as the shares are deposited in their market of origin which is negotiated locally is a certificate.
Invest in Forex
The largest financial market in the world. It is unique regarding traded volumes, its liquidity, and its geographical dispersion. Also known as the international currency market.
The way to trade Forex is a currency against another.
Which leads us to write about the exchange rate. Which is to say, how many units of a currency type I need to get a unit of another currency.
In the Forex Market are negotiated all kinds of currency pairs. Standing out, among the most traded, the euro against the American dollar, the sterling pound against
the American dollar, the American dollar against the Yen Japanese and the American dollar against the Swiss Franc.
Invest in Futures
A future is a contract by which the parties agree to buy or sell a certain underlying asset at a fixed price and predetermined date. Can also be a contract on a financial asset or a physical good.
Used as an instrument of leverage or coverage, having the chance to invest in this instrument by buying or selling the underlying asset.
This type of assets is traded with guarantee margins to be able to support the trade.
Invest in Exchange Traded Fund or ETF.
ETF pool or exchange-traded fund. It is an investment fund which lays listed as if it acts like a share and it goal aims to replicate the performance of another asset.
Its management is passive as just looking to replicate identically the behavior of the underlying asset. This substantially decreases the trading costs; then it is a
very advisable instrument for those investors who are looking for diversify a portfolio by paying low fees.
The largest marketplace for trading ETF is in the U.S in New York. They were also developed and traded in the principal markets of Europe and Asia.
Ten most common are:
Invest in Commodities
Commodities, raw materials are tangible goods. Normally in the form of raw materials, these materials can be classified in several ways. The most basic distinction is between:
-Agricultural raw materials
-Raw materials in general, which can be extracted from the ground.
In the trading context usually, are found four basic types:
Invest in Crypto Coins
The crypto coins or cryptocurrencies are virtual currencies which use digital encryption for their operations and with which you can perform economic transactions without the need for intermediaries.
These digital currencies use the cryptography to create more secure economies with greater privacy, and they do not respond to the control of any country or institution. Since they are decentralized.
The cryptos most prominent currencies today are:
Invest in Options
An option is a right to perform a future trade on an asset at a certain price and a stipulated date. The buyer of the option does not buy an asset, but a right about the asset and later on it will decide whether to execute it or not. It is to say; the trader has no obligation to buy or sell the underlying asset.
As in every transaction, there is a buyer and a seller. The buyer of an option pays a rate for the right to buy Call or sell Put a unit of the underlying asset at a price of
Specific execution to the date of expiration or before. Therefore, it is a contract by which the issuer/seller for a certain amount of money /rate, gives to the buyer/holder the
right to demand an issue inside or until date, the Buy or Sale of a certain amount of securities/lots at a predetermined fixed price called execution price.
Types of options are two:
Invest in Binary Options
Binary options are a financial product of binary nature. Because there can only occur two possible results.
That for are known as options for everything or nothing, or digital options.
This method allows investing in practically any financial instrument, currency, shares, commodities, indexes without having the physical property of it.
Binary options are instruments over the counter. Meaning, they do not quote on an organized market. Are sold directly by the issuer to the buyer, the investment in binary options comes based on predicting what will be the price on a specified financial instrument after a period of time. It is to say, whether it will go up or go down.
We have two possible results:
-If we hit our forecast, meaning that the binary option has “expired in the money.” Then we can get 100% of the amount we have invested plus a percentage we previously know. Which depends on the broker.
-If we fail in the forecast. Meaning, the binary option has “expired out the money.” Generally, we lose the total amount invested
Invest in mutual funds
Mutual Fund represents a financial asset which allows a group of people with goals on similar investment, having a professional administration dealing with the analysis for the best way to achieve those objectives and implement the necessary strategy to make them. Protecting at the same time the assets in which they invest.
Mobiliários values may integrate the heritage of these financial instruments with a public offer, for example, bonds, shares, negotiable obligations, commodities, forex, futures contracts, and options instruments issued by financial institutions and even money.
Because of these, a Mutual Fund can be:
Invest in Insurance
Investments in insurance are assets managed by Insurance companies.
Are instruments similar to Common Investment Funds, but they look for more specific objectives. The most outstanding we have:
These are all the most important instruments that you go to be able to find as investment options. These can be combined to obtain an investment portfolio which fits
Better to your profile.
Remember, you always have to invest in what is familiar to you, do not invest in a financial instrument you do not know. First, educate yourself to then invest and avoid problems.
If you do not know where to get yourself ready, you can do it by contacting me in the comments box below. I will help you to develop your investment intelligence and your financial education.
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