We often have several questions about what to do with our savings, questions such as “where to invest savings without risk?” Appear. When it comes to investing your savings, as is obvious, you look for and search the market for the financial operations that can provide the greatest profitability, and with a level of risk that always depends on the investor’s profile in each case. But who does not want profitability without risk?
That is why in this post we have developed a small guide aimed at all users who want to invest money without risk. Here you will find all the necessary steps to know how to obtain the highest profitability. It is a generic guide valid for any type of investment in any investment platform such as MytripleA, with the aim of knowing how to make money with the lowest possible risk or in a more secure way when investing in crowdlending. So without further ado let’s shed all the alternatives to monetize your money running a lower risk.
7 tips to invest savings safely
Profitable money: Start by diversifying the risk
It is the basic recommendation for any investor that intends to make the savings profitable. It is essential that you diversify your funds between different investment operations to minimize the overall risk of your investment portfolio. In this way, you will get the probability of loss greatly reduced.
Statistically, if an operation is not profitable it will be compensated with another one that is, so it is very difficult that you can not monetize your money and compensate the possible losses. By diversifying your trading portfolio, you can perform very different financial transactions with less risk; some with greater profitability and risk, and others to the contrary.
In the case of the investments guaranteed by SGR, it is not necessary to carry out this diversification since the investment in insurance and therefore greater amounts may be invested.
Invest savings depending on the Rating of each operation
Among the different alternatives for monetizing the savings, we must highlight the different financing platforms that have among their tools a rating system for ratings of each of the financing operations. It is the valuation system of operations that do not have the endorsement of a Reciprocal Guarantee Company. This rating greatly facilitates the decision-making and valuation capacity of the investors of each of the financing operations they have available for their election.
The transactions guaranteed by SGR are labeled as ” guaranteed “, so it will be very easy to identify them in the Market section. You can read more of them below.
Invest safe money with operations that include guarantees and guarantees
When deciding where to make savings and do it in a safe way, it is essential to value very positively operations that have personal guarantees from their partners or additional guarantees. This will indicate that the beneficiaries of the financing are really interested in obtaining the loan and make available to the investors all possible facilities to ensure the return of the loan and thus minimize the risk of the operation.
On the other hand, you will find, as we said, the guarantees of the Reciprocal Guarantee Companies. You can read more about this security structure of these investments here.
You can start to monetize money in the short term
To start familiarizing yourself with the functioning of crowdlending platforms you can start to monetize the savings and invest money in short-term operations which report income more quickly. These operations will generate greater confidence among investors since in a short period of time they will see how they recover their capital and interest and can invest it again in other operations.
These short-term operations generally do not have the endorsement of a Reciprocal Guarantee Company, but with personal or other guarantees. In this type of operations, diversification is recommended.
Be clear about your objectives and what is your investment model
Ask yourself: How to make money? Where to monetize my savings? What risks do I want / can I assume? You must be clear about your preferences, that is, if you want to invest money with low risk in operations with lower profitability and a better rating or guarantee of a Reciprocal Guarantee Company, or on the contrary, you prefer operations with higher profitability associated with a lower rating. This will determine your position to monetize your savings with a greater or lesser associated risk.
A risk diversification option would be to invest small amounts many times in different operations with different ratings.
How to monetize money above 4%?
If what you intend as an investor is to monetize your savings with MytripleA above 4%, your investment operations should be directed towards operations without SGR endorsement. This is because these operations have a generally lower profitability.
In MytripleA, the operations without SGR endorsement are personally endorsed by the companies that request loans, being this personal guarantee one of the requirements to which we give greater importance. All with the purpose of taking care of our investors.
Keep in mind the safety of your money – The importance of investing money with less risk.
MytripleA is the first and only platform in Spain that has a Payment Entity license by the Bank of Spain and the Participatory Financing Platform of the CNMV.
Having a Payment Institution license implies that the account where investors deposit their funds is an account differentiated from MytripleA’s own activity account, so in case of bankruptcy, creditors could not act against this account of investors. , and therefore they would keep their funds transferred but not invested safe.
Invest money safely in crowdlending
The first thing to understand is what this type of investment consists of and how it differs from other products.
Investing in crowdlending is to lend your money directly to companies that have previously gone through a risk analysis. In return, the investor receives a return, which was previously reserved only for banks. This activity is mediated through crowdlending platforms, but in this type of investment you will find different modalities such as:
- Investments with high profitability and measured risk : This type of investments are the most widespread and you have to know that it is necessary to make a correct diversification between different loans since they do not have the endorsement of any Reciprocal Guarantee Society or similar that takes charge of the debt in case the company or borrower does not pay the debt.
- Investment in advance of invoices or factoring: In the type of investments is short-term and the money is used to finance the advance of invoices of companies. In this type of product, it is also necessary to make a diversification among loans.
- Investments Guaranteed by Reciprocal Guarantee Companies: In this case, investors lend their money to companies through loans that have the endorsement of a Reciprocal Guarantee Company. In this case, your investment and ordinary interests are insured by these companies, therefore, in case it is not paid by the borrowing company, these Reciprocal Guarantee Companies take over. These types of investments are, until now, only offered by MytripleA. We explain to you more about Green Touch loan consolidation company.
Invest without risk in time deposits vs. invest in crowdlending
The fundamental differences of investing in a deposit to lend your money directly to companies through a crowdlending platform are the following:
- The fundamental difference is in the profitability that is obtained. While the fixed-term investment is at the minimum, thanks to crowdlending, the investor can obtain a guaranteed return of 2% on investments guaranteed by Reciprocal Guarantee Companies, up to an annual 7% on the rest.
- In the investment in crowdlending is the investor himself who chooses the company or the project to which he wants to lend his money.
- The recovery of money also changes, given that while in a fixed term no capital or interest will be received until the end of the period, in investing in crowdlending the investor will recover capital and interest monthly, thus being able to reinvest those amounts and thus multiply profitability In the case of short-term investments, the recovery of the money is made at maturity, but it is a matter of terms rarely exceeding 6 months.
Where to invest savings in a safe way? Guaranteed investments in crowdlending
As we have indicated previously, MytripleA has agreements with Reciprocal Guarantee Companies (SGR), which provide the guarantee of the loan operation. These guaranteed investments have the main characteristic of a security, given that if the loan goes into default (the company does not pay 3 consecutive installments), the SGR will be responsible for returning the money invested to the investors who have participated and the ordinary interests. In case of specific delays without reaching the 3 unpaid installments, the company will be charged interest for late payment that will be paid to the investor for the delay.
The Bank of Spain Circular 4/2016 qualifies the operations ensured by Reciprocal Guarantee Companies, as “No appreciable risk” operations, placing them in the same category as operations with central banks or the deposit guarantee fund.