I have a little extra money, where do I invest it?

June
15, 2021

5 min read

Opinions expressed by Entrepreneur contributors are their own.

The National Institute of Statistics and Geography (INEGI) indicated that there was an increase of 3.3% of the Gross Domestic Product (GDP) in real terms in the October-December quarter of 2020 compared to the previous quarter, however, the Mexican economy closed this 2020 with a contraction of 8.2%; a contraction never seen in decades past. Future projections are for a moderate growth scenario, in the most recent report of the International Monetary Fund on World Economic Outlook indicates that the world economy will grow by 6% in 2021, moderating this increase to 4.4% in 2022 Is it a good time to invest? The answer is yes.

What do you do with your saved money, do you have it in a savings account or under your mattress? We know that having it at home is not the best option but the ideal is to invest it in an instrument that generated more returns than any traditional financial institution.

“One way to exploit savings to the maximum will be by investing them, there are a wide variety of platforms that will take you by the hand, helping you to obtain the best returns. Investment is an alternative source of income,” says Gerardo Obregón, Founder and General Director of Prestadero.com .

If you are one of those well-managed people who know ways to invest money, you will like this article and if, on the contrary, you are one of those who money burns in their hands, stay, perhaps we will be able to encourage you to start saving when you meet the 5 profitable ways to invest money.

1. P2P

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Loans between People on the Internet. ” Peer To Peer Lending ” is a new investment modality that works through crowdfunding, which helps to connect people who are looking for money with people who want to invest it. Its operation is very simple and the rules of the game are clear, so if you invest through a serious company, it is a very safe option to invest money. In addition, the company is in charge of carrying out all the procedures, you just have to register, choose the loan you want to fund and then sit down and wait for the interest. The expected return is very good and is in accordance with the interest rate with which the credit has been approved, and the risk will depend on the type of credit you choose, as well as the term.

2. Stock Exchange

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You can invest in the stocks of companies that are listed on the stock market. If the shares rise from the moment you invest to the moment you sell, you will make a profit, on the contrary, if after investing in one or more shares, they go down, you will have a loss. Due to the above, the risk of investing your savings in the Stock Market is high, but you can obtain a good return also depending on the amount you invest and the time. These investments are considered long-term since by eliminating daily fluctuations the returns are constant and can be high.

3. Entrepreneurial Capital

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Also known as Venture Capital, it consists of funds that are dedicated to investing in recently created companies called startups with a high potential for income and impact. Venture capital funds are managed by investment professionals. Your risk is high since if the startup or the group of startups in which it is invested does not work, you will have losses. On the other hand, the return on investment is very long and you must visualize it in the medium and long term.

4. Purchase of art

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You will delight your senses and win the admiration of those around you. Buying art from an emerging artist, betting that several years later it will become famous and sought after, is a way to invest money that is fashionable. The risk is medium with an expected return that can range from 10 to 15% but in the long term.

5. Show Business

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Yes, investing in theater or cinema can be very lucrative if you know how to choose well, although the risk is high because in reality, no one knows for sure whether a staging or film will be to the liking of audiences. The expected return can generally exceed 80% and the recovery is quick. After the pandemic, this sector expects a rebound in its growth.

Within this great variety of the investment world, you will surely find the one that best suits you, the important thing is to move your money so that it does not lose its value and you have more capital for any emergency or taste, at Prestadero we are convinced that providing fair returns , makes us win-win, our mission is to support the Mexican economy, concluded Obregón.