Profitable And Invest
Profitable And Invest? Often we have several questions about what to do with our savings. The questions is such as “where to invest savings without risk?”. When you are investing to your savings, as it is obvious, seek to obtain a return and search and searching in the market the financial operations. Which can provide the greatest profitability but always according to the investor profile in each case.
That is why in this post we have developed a small guide aimed at all users. Whom are wish to invest money without risk, with all the necessary steps to know how to obtain the highest profitability.
It is a generic guide valid for any type of investment in any investment platform, with the aim of knowing how to make money. The lowest possible risk or in a more secure way when investing in crowdlending. So without further ado let’s shed all the alternatives to monetize your money running a lower risk.
Invest money safely in crowdlending
The first thing to understand is what this type of investment consists of and what differs from other products.
Investing in crowdlending is to lend your money directly to companies that you have previously gone through a risk analysis. In return, the investor receives a return previously reserved only to the banks. This activity is mediated through platforms.This is the only crowdlending platform so far that has guaranteed investments. Where it can be lent directly to the company through secured loans. We explain you more about them.
Invest without risk in time deposits vs. Invest in crowdlending
The fundamentals of difference to invest in a deposit is for lending your money directly to the companies and you have to follow the fundamentals is:
- The fundamentals of difference is in the profitability that is obtained. While fixed-term investment is at the minimum. Thanks crowdlending, the investor can obtain a return of 2% on guaranteed investments.
- In the investment in crowdlending is the investor himself who chooses the company or the project to which he wants to lend his money.
- The recovery of money also changes, given that while in a fixed term no capital or interest will be received until the end of the period. If you invest in crowdlending the investor will recover capital and interest monthly, thus being able to reinvest those amounts and thus multiply profitability.
Invest safe money in guaranteed investments in crowdlending
- We have agreements with Reciprocal Guarantee Societies (SGR), which provide the guarantee of the operation. This type of operations has the main characteristic of security, given that if the loan goes into default, the SGR will take charge of returning the money invested to the investors who have participated and the ordinary interests. These are the guaranteed investments.
- Below is a comparative table between the profitability of the fixed terms and the profitability obtained thanks to the investments guaranteed by SGR.
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Invest your money for sure
The Bank of America Circular 4/2017 qualifies the operations insured by Reciprocal Guarantee Companies, as “No appreciable risk” operations, placing them in the same category as operations with central banks or the deposit guarantee fund.
Learn more about guaranteed investments
Profitable money: Start by diversifying the risk
It is the basic recommendation for any investor that intends to make the savings profitable. It is essential that you diversify your funds between different investment operations to minimize the overall risk of the investment. In this way you will get the probability of loss greatly reduced.
Statistically if an operation is not profitable it will be compensated with another one that is. So it is very difficult that you cannot monetize your money and compensate the possible losses. By diversifying your trading portfolio, you can perform very different financial transactions with less risk; some with greater profitability and risk, and others to the contrary.
In the case of the investments guaranteed by SGR, it is not necessary to carry out this diversification since the investment in insurance and therefore greater amounts may be invested.
Invest savings depending on the Rating of each operation
Among the different alternatives for monetizing the savings, we must highlight the different financing platforms that have among their tools a rating system for ratings of each of the financing operations. It is the valuation system for operations that do not have the endorsement of a Reciprocal Guarantee Company. This rating greatly facilitates the decision-making and valuation capacity of the investors of each of the financing operations they have available for their election.
The transactions guaranteed by SGR are labeled as “guaranteed “, so it will be very easy to identify them in the Market section. You can read more of them below.
Invest safe money with operations that include guarantees and guarantees
When deciding where to make savings and do it in a safest way. It is essential to value very positively operations that have personal guarantees from their partners or additional guarantees. This will indicate that the beneficiaries of the financing are really interested in obtaining the loan and make available to the investors all possible facilities to ensure the return of the loan and thus minimize the risk of the operation.
Start to monetize money in the short term if it gives you more security
It is advisable for beginning investors in the matter who wish to capitalize on the savings and invest money with the lowest possible risk, who start investing in short-term operations, which will earn income faster. These operations will generate greater confidence among investors, since in a short period of time they will see how they recover their capital and interest and can invest it again in other operations.
These short-term operations generally do not have the endorsement of a Reciprocal Guarantee of the Company. But with personal or other guarantees. In this type of operations, diversification is recommended.
Be clear about your objectives and what your investment model
Ask yourself: How to make money? Where to monetize my savings? You must be clear about your preferences, that is. If you want to invest money with low risk in operations with lower profitability and a better rating, or on the contrary. If you prefer operations with higher profitability associated with a lower rating. This will determine your position to monetize your savings with a greater or lesser associated risk.
A risk diversification option would be to invest small amounts many times in different operations with different ratings.
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How to monetize money above 4%?
If what you intend as an investor is to monetize your savings with above 4%, your investment operations should be directed towards operations without SGR endorsement. This is because these operations have a generally lower profitability.
The operations without SGR endorsement are personally endorsed by the companies that request loans. Being this personal guarantee one of the requirements to which we give greater importance. All with the purpose of taking care of our investors.
Keep in mind the safety of your money, The importance of investing money with less risk:
This is the first and only platform in Spain that has a Payment Entity license by the Bank of Spain and the Participatory Financing Platform of the CNMV.
Having a Payment Institution license implies that the account where investors deposit their funds is an account differentiated from own activity account, so in case of bankruptcy, creditors could not act against this account of investors , and therefore they would keep their funds transferred but not invested safe.
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