Depositing your money into a savings account and hoping that they will grow into them is not a particularly profitable idea in today’s situation. If you choose to invest in shares, you create much better conditions for your money to grow. But there are some things to consider before you get started.
How much freedom does it mean to invest in shares?
Compared to other forms of savings, equities give more freedom in how you can place and control your investment. But with that freedom comes a certain demand for commitment from you as a saver. This means that it is good if you read about the industries and companies you intend to invest in and then keep yourself constantly updated on the developments within those companies and industries.
Is it risky to invest in shares?
Investing in shares means that you take a greater risk than, for example, saving in mutual funds. But when you take a bigger risk you also have the opportunity to get a higher return. So before deciding whether to invest in shares, consider how much risk you are willing to take with you.
No matter how much risk you are willing to take, you should only invest a sum that you can afford to lose. Keep in mind that even small investments can grow big in the long run. Once you decide what amount you want to invest, there are a couple of things you can do to reduce the risk. One of them is to spread your investment across companies in different industries. This way you are not as vulnerable if the shares in a specific company would decrease in value. Many also choose to spread and reduce the risk by investing part of their money in equities and the remaining part funds, which have a lower risk.
What does it cost to invest in shares?
Investing in shares always comes with a cost, but that cost can vary a great deal. The fee for trading in shares is called brokerage and is usually paid both when you buy and sell shares. The commission is either a fixed amount or a percentage of the value you buy or sell for.
In addition to the size of your investment, the fee may also vary depending on which stock broker you choose and which market you are trading in. Therefore, it is good to compare how much you need to pay in commission before deciding how and where to invest your money.
Invest your money with Captain Nojh Sari
A good alternative to investing in stocks is to invest your money with Captain Nojh Sari. Then you lend money to creditworthy individuals through our digital platform. With a low risk and high return, you can either get the money paid out once a month or you can also choose to reinvest them in new loans and thus allow them to grow further over time. When you want to access the money, you simply choose to have them paid out.