All investors, whether they are beginners or professionals, are constantly looking for the best investment strategies to earn more income. In general, these strategies must present a certain balance between the return and the level of risk. With all this in mind, what are the best financial investment strategies based on the amount of risk accepted? Find out in the rest of this article.
Overview of financial investments
Depending on the risk, there are basically several financial investment alternatives. The most popular ones include stocks and bonds on the stock exchange, as well as ETFs.
Stock market shares
Investing in stock market shares is generally an excellent alternative to make an interesting income. However, it is essential to do a little analysis beforehand to find out which stocks are the most highly rated and therefore likely to offer you a better financial return. In this regard, a few factors are essentially to be taken into account. They are :
- the history of the shares ;
- the general state of the company;
- the development strategy of the structure.
In general, it is recommended that you focus only on the companies with the most interesting dividends in order to make more income. However, before investing, it is important to take into account the volatility of the shares. To better orient yourself, you may want to ask a financial advisor in Nice.
In the stock market, certain shares can be particularly listed. Under these specific conditions, you will no longer be investing in a stock. Instead, it will be a debt obligation. In other words, this form of investment consists of lending a specific amount of money to a stock market company. In return, the company will offer you a specific coupon, with a return that you will be well informed of in advance. You will not be surprised at all since your earnings will be clearly known from the start. Since the risk associated with this investment is smaller, it is less volatile and therefore the returns are lower. The annual return is estimated to be in the range of 2-5%.
Exchange-Traded Funds (ETFs)
When you do not have enough time or skills for an optimal and efficient management of your shares, the ideal would be to opt for ETFs. These investments offer you the benefit of exposure to specific themes or to certain indices that respond easily to the various fluctuations observed on the market. They can also be registered in a PEA or in a life insurance policy.
Very low risk strategies
The strategies to adopt according to the risk are quite variable. The ones suggested here are easily adapted to those who do not wish to take too much risk in investing.
Safe haven investments
During a crisis period, most investors choose to invest in products such as gold and silver. These are generally referred to as safe haven investments because they provide long-term income security. In times of great instability, safe haven investments are more solid investments than currencies that can rise or fall in value over time. In most cases, silver fluctuates in line with gold, although it has a lower yield. ETFs also have a special role to play when it comes to trading gold and silver. Among other things, you can use them to build up large reserves of gold or silver even in relatively unstable periods.
The euro fund
The euro fund from the various life insurance contracts can be classified as one of the most appreciated contracts by the French. First of all, it is essential to underline that its yield is rather low. Indeed, it is slightly below 2%. Nevertheless, it offers a rather reassuring level of security. Then, it should be specified that the inheritance costs are not at all taken into account in this procedure. This allows the investor to make valuable savings. Finally, since the capital is almost guaranteed, the euro funds from life insurance have the particularity of being much more convincing than other investments. It is therefore perfectly suited to investors looking for very low risk investments.