It’s never too early or too late to start investing. If you want to make your money work for you beyond just bank savings, then it is worth looking into the variety of investment options that are available. The definition of investing is a simple one: investing money to earn a financial return.
Before you begin investing, it helps to understand what your investment options are. Here is a list of the most common types of investment:
Property: Investors use their money to buy residential or commercial property with the aim of profiting from a future sale, while also gaining regular rental income. Property can be considered a medium risk investment.
Commodities: These are goods that are traded and include gold, and even wheat. These are considered risky because the price can fluctuate. If you needed to sell because of an emergency and the price of the gold at the time was very low, you could end up losing money.
Insurance: This is considered a low risk approach as you are guaranteed a certain amount according the coverage you paid for.
Once you have a better idea of where you would like to invest, you need to have a plan to give yourself the best chance of making a profit on your investment. Here are the key things to remember:
- Assess your risk: As detailed above, different types of investments have different levels of risk. The greater return you are looking for, the more risk you will usually need to accept.
- Diversify: Avoid putting all your money into one investment type and instead place your money across different types of investments. The aim is to reduce risk by balancing it across the investments.
- Plan for the long-term: It is recommended that you invest for a minimum of five years. The thinking is that any short-term losses will be offset by profit in the longer term.
- Don’t panic: The value (and potential profit) of your investments can go up or down. Don’t be tempted to sell just because the price is going down. Remember, this is a long-term investment. Smart investors always buy when the price is low rather than panic and sell.
- Watch out for fees: Regardless how you invest, you will always need to pay a fee to somebody, usually the person or company that is handling your investment. Always consider the value you will get from the fees you pay.
Before start to invest, make sure you can afford to do so. Investments can never guarantee profit, so good tip for beginners is to only invest as much as you can afford to lose. If you’re looking for a low risk way to invest, then insurance may be a good option for you. Speak with a Chubb Life Vietnam agents who will discuss with your needs and the options available to you.
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or contact Chubb Life Vietnam to find out information about insurance packages specifically for you at:
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