How to invest in fixed income without danger – Loan

Investing in fixed income is one of the safest investment models that exist. However, whenever we use our savings to obtain a return in return, it is logical that we risk.

However, there are some tricks with which to invest in fixed income without danger . Or at least reducing this to the maximum. Would you like to meet them? At Inversiones Seguras, we tell you about them. Go for it.

 

What is fixed income

fixed income

Before seeing how to invest in fixed income without danger it is interesting that we understand the characteristics of this financial product. When we talk about fixed income we do it to refer to those investments that are formalized in loan mode to:

  • Public entities, such as the State.
  • Private businesses.

In exchange for the money, these companies or institutions acquire the commitment to return it in a period of time agreed with some interests.

Within fixed income we can distinguish several assets:

Public fixed income

  • The Treasury bills . That could be purchased with different maturity dates. From 3 months a year).
  • The bonds , whose maturity goes from 3 to 5 years.
  • The obligations , where the maturity can go from 10, 15 to 30 years.

Private fixed income

In this case we would find the following financial products:

  • The promissory notes, similar to the Treasury bills in terms of their duration.
  • The bonds, with the same maturity as the public ones.
  • And finally the obligations, which also expire between 10, 15 and 30 years.

The different products associated with fixed income, both public and private, can be acquired in a primary or secondary market.

 

Tips for investing in fixed income without danger

Tips for investing in fixed income without danger

Be clear about our objectives

It is often considered that fixed income is a financial product without risks. However, it is not like that. Within the secondary market, fixed-income products can fluctuate, so our profits would be affected . Hence, we must be clear about our objectives and that we use it, like the rest of possible investments, for a greater diversification of our portfolio. If you want to know more about How to make an investment portfolio do not stop reading this post.

 

Think about the due date

At the time of investing, we must bear in mind the expiration date . And we have to establish it based on the time that we can do without our money. If you think you will need it in the short term, invest in promissory notes. If you can let go of it for longer, the best are bonds or obligations.

 

The commissions and the type of currency

Every financial product is usually associated with a series of commissions . And these always reduce our profitability. Hence we must control and know them well to know what to invest in fixed income.

As for the currency, it can be somewhat dangerous to buy fixed income in another currency. Since the fluctuations can have a severe impact on our profits.

As you can see, these are simple and easy to follow tips. Do not lose sight of them both for your fixed income and equity investments. They can help you achieve your goals with a much lower risk.

If you want to read more articles about investments, do not forget to visit our news section. Within our investment items you will find topics as interesting as the following:

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