If you think about how to increase your savings more efficiently, you will still reach investment management.However, there are an infinite number of investment products in the world, and all of them have advantages and disadvantages.What kind of investment product should you choose when you think about increasing your savings first?In this column, I will first explain general investment products.We hope that you will be able to find a method of asset management that suits you through our explanations.
table of contents
What kind of investment products are there?
Introducing representative investment products.
·Foreign currency deposits
Depositing in foreign currency instead of Japanese is called foreign currency deposit, and you can earn more interest by depositing in the currency of a country with a higher interest rate than in Japan.Also, depending on the timing of withdrawal, you can expect to get foreign exchange gains between Japan and overseas.In addition to ordinary deposits, there are cases where fixed deposits and savings plans are available.
・FX (foreign exchange margin trading)
You can deposit your margin with a trading company and apply 25 times leverage to your collateral.It is possible to make a large profit with a small investment, but of course the opposite is also possible, and it can be said to be a representative of high-risk high-return investment.
·stock investment
The price of the stock you bought will rise and you will make a profit by selling the stock.It is popular with many investors because of the benefits of receiving dividends and shareholder benefits.It is necessary to constantly check trends from a global perspective, as they are affected by the business situation of the company and the world situation.
・JGBs for individuals
A government bond is like an IOU by investing in a country, and the interest is the investor's income.It can be purchased from 1 yen and can be said to be an easy-to-find product.The lower limit of the interest rate is 0.05% per annum, which is higher than that of deposits, and as long as the Japanese economy does not collapse, it can be used like a deposit without worrying about losing the principal.
·Money
Unlike currencies and stocks, it is a “real asset” that has real objects.The value of real assets will never be zero compared to stocks that lose their value when a company goes bankrupt.Gold does not generate interest or dividends, so even if you hold it for a long time, it is not suitable for making a large profit.However, when the value of currencies and stocks declines due to turmoil in the world situation, physical assets tend to rise in value and have historically maintained their value for a long time. Excellent.
・ Investment trust
An organization of investment professionals called “funds” that collect funds from investors manages them without sticking to specific investment products.
There is a merit that you can leave it to a professional even if the investor himself does not have knowledge.The fund invests broadly in promising investment products such as stocks, bonds, and real estate, and distributes investment results to investors.Since it is left up to the fund, success or failure is determined by whether or not an excellent fund can be selected.
·Real Estate Investment
Compared to other investment products that can be started from tens of thousands of yen, real estate investment requires a large amount of funds of several million yen.In addition, it is difficult to convert to cash immediately due to poor liquidity.Even after purchase, running costs such as loan payments, reserve funds for repairs, management fees, property taxes, etc. will continue to be incurred as long as you own the property.However, the loan and various expenses can be covered by the rent, so if you successfully pay off the loan with the rent and sell it for tens of millions of yen, you can say that you have been able to build a large asset with a small initial cost.
In real estate investment, the presence or absence of tenants determines the success or failure, so being able to maintain the occupancy rate is an essential condition for success.
Related article:What is the initial cost of real estate investment?Thorough explanation of the breakdown
I don't need explosive profits, so I want to reduce risk anyway
Low risk, low return investment products are suitable.
We recommend gold, which is a real asset, government bonds, which have a low risk of losing principal unless the country goes bankrupt, and foreign currency deposits.
I have a certain amount of assets, so I want to increase them slowly
Middle risk, middle return investment products are suitable.
It is assumed that you have a certain amount of assets, but investment trusts and stocks are difficult to achieve dramatic results because they take time and work carefully, but the risk is low.However, if successful, the return is large, so it is suitable for those who have a certain amount of assets and want to slowly increase them.
I want to make a big profit from a small amount of money
There are high-risk, high-return futures trading, FX, and cryptocurrencies.
Repeat the settlement while watching the constantly fluctuating chart. It is an investment method that many people who get explosive profits in a short period of time called “billion people”.However, the risk is also very high, and if the market is turbulent and the loss cut cannot catch up, there is a risk that you will be in debt of several million yen overnight.
Related article:Real estate or Forex, which one has lower investment risk?The first asset management to choose from merit and risk
Low risk, high return in the long term...
You can't get explosive profits in a short period of time, but if you have a certain amount of assets, you can say that real estate investment is a low-risk, high-return investment in the long run.Since it is a physical asset, its value will never go to zero. As long as there are tenants, the rent will cover the payments for the loan and various expenses. The reason is that profits will continue to grow.
As long as it is an investment, there is risk, but with the right knowledge, you can reduce the risk as much as possible.
Related article:The most scary vacancy risk in real estate investment.What are the measures and characteristics of properties that tend to be vacant?
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
