Equity investments are those whose profit is not previously known, and as it can be very profitable, it is also prone to capital loss due to market fluctuations. This type of investment is for younger people, with a more risky profile and who can maintain the long-term vision even when the market moves unfavorably.
The best known example of this type of investment are shares , a security that is traded on the stock market, where the investor buys a small part of a company, represented by shares, and can enjoy the profits that it generates with its dividends. But if the value of a company’s shares falls, the investor can lose his money.
Still, equity instruments are the forte of trading on the world’s stock exchanges and involve many assets other than stocks, such as commodities, stock indices, currencies, and ETFs. And since the risk is much higher with this type of investment, so is its potential profitability. Whether the investor wins or loses will depend on the decisions he makes as to where and when to invest.
Types of investments – Investments in real estate projects
Another type of investment is that of real estate projects, and it is based on the fact that real estate gains value. This type of business is based on the purchase and sale of real estate and real estate for negotiation through Real Estate Investment Funds.
If you want to know how to invest in real estate projects? We invite you to read the following post.
Types of investments – Stock market
The stock market is the epicenter of investments , what we know as the stock market; In it, both fixed income and variable income instruments are traded, as well as other assets (cryptocurrencies, derivatives, CFDs, etc.). It is recommended that before entering this world, you are clear about the basic concepts and instruments in which you want to invest according to your profile.
You can trade debt securities, bonds, futures, stocks, stock indices, financial derivatives, etc. You can access through broker platforms where you can also prepare and study the market movement.