Told you long-term financial investment channels worth money - Insurance Finances

Long-term financial investment Is it an asset or a source of capital, why does this form attract so many strong capital investors? What is a potential long-term investment channel and worth money this year? All will be answered in the article below.

What is a long-term financial investment?

This is a form of capital investment in financial products with the aim of earning profits in the future. Accordingly, you can determine the rate of return and find the average mutual fund with that rate of return between a few years and 10 years.

Due to the constantly changing market, this is a preferred form of investment because of its safety and sustainable capital growth than short-term investment.

Pros and cons of long-term financial investments

Advantage

• Facilitates you to have more time to prepare long-term investment plans and strategies. From there, you can minimize the possible risks.


• Helping to achieve stable profits in the future, improving quality of life.


• Deal with risks quickly; reduce risk to the lowest level in the market.

Defect

• It requires a fairly large capital source, and it takes time to invest and large costs to make a high profit.


• It is necessary to grasp and have in-depth knowledge of the knowledge related to the investment field. Know how to apply sensitive and effective market analysis.


• There should be perseverance and caution in every strategy, even the smallest step. This will help ensure profits.

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Features of long-term financial investment

• Long-term investments tend to exhibit lower volatility than short-term investments.


• The longer the investment period, the higher the probability of breaking through the low market period will be.


• There are tax advantages. Typically, gains on long-term investments are taxed below your income.


• Long-term investing helps investors to be more patient and calm in all circumstances.

Some of the most effective long-term financial investment channels

Financial investment in banks – Savings

This is considered the safest and most stable long-term investment channel. Banks are always supervised by the State Bank of Vietnam. This will reduce financial risks.

Currently, bank interest rates fluctuate around 3-7%/year. In particular, some banks will apply an interest rate of 7%/year with some conditions attached such as minimum deposit amount, maximum term, etc.

Long-term financial investment in securities

Investing in stocks for a long time is also an effective form of profit. Although the stock market has many ups and downs every day. But if you persist in investing over a long period of time, it will generate great profits. The advice is that you should look for companies that are already stable; Companies with high growth potential are safer and more efficient.

However, if you do not have a lot of experience, knowledge or you are too busy to monitor market movements, you can look to open-ended funds and trust experts in this field.

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Invest in bonds

Bonds are a type of capital mobilization that the issuers will borrow from investors. They will be obligated to pay interest periodically to the investor as committed in the contract. Bonds are considered a safe, stable investment channel with a much higher interest rate than savings.

Real estate investment

This is a form of long-term investment chosen by many people because it brings high returns. But the liquidity of real estate is quite low, with higher risk compared to other channels. To invest in real estate safely and effectively, investors must have many factors of knowledge, experience, acumen to the market, large capital...

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