The financial market is subject to periodic changes by balancing preferences for a specific segment of financial instruments. When online casinos or modern financial pyramids are popularized, users’ funds can be redistributed between new “magnets” for monetary investments. This article provides a comparative analysis of modern financial instruments to identify safe and unreliable financial sectors. Find out more information here:
- The deposit is traditionally the safest financial investment. There is a guarantee for deposits, and the yield can be up to 4% per annum. However, accelerating inflation has shaken confidence in deposits as a profitable investment, as the constant surges in the dollar destabilize the banking sector.
- Online casinos, Forex, bitcoins, blockchains are an extremely dubious investment option. If we calculate the possibility of winning in a casino, then it will be equal to about one in thirty million, and the opportunity to make money using Forex is less than 1%. Simply put, this is an absolutely losing option. The profitability of cryptocurrencies is not confirmed by anything, and the declared profit of Forex is minimized by high risk and low profitabilit.
- Mutual funds are just a colorful set of wording for a specific package of securities. They take from the owner about 3% of the total value of the monetary asset, regardless of the final result. After withdrawal of another 1.5% by the management company, the total return on the asset will decrease by about 4.5%. A good example was shown in 2008, when a well-known and large investment company was acquired by Sberbank. Then the banking crisis lowered the prices of the company’s investment shares by up to ten times. Clients who invested in these funds lost their income tenfold. Many have tried to get their contributions back, involving courts and legislative initiatives. But according to the law, the share price can decrease depending on market conditions. This means that the court will not be able to help in this problem.
- Futures and options trading, derivatives market rules. If the functions of these financial instruments are combined in insurance against price fluctuations, they bring a certain profit. But this is a risky option, since working in the derivatives markets requires specialized knowledge, training and experience. With all the dangers, many users prefer to trade and invest instead of futures. Investing is the most risky, because in most cases all the risks are borne by the owner of the finance. Experienced financiers start working with small capital and use the maximum set of instruments: bonds, stocks, funds, etc. A small financial portfolio is not so scary to lose, and the experience gained will serve as a good lesson for the future.
- Shares of large companies. An attractive segment of earnings on securities, but at the same time risky and unpredictable. It is extremely problematic to predict a fall or rise in stocks. These processes are influenced by many objective processes associated with the world market. In other words, a lot here depends on luck and on the financial situation, not only in the country, but throughout the world.
Features of the securities liquidity
When the landlord wants to quickly sell his home, he will have to offer a certain discount. At the same time, he will lose part of the income from the sale, but will gain his time. The liquidity of securities trading is arranged with a different logic. You contact traders and sell shares, then withdraw funds from the brokerage cell and receive money to your personal bank account.
For withdrawing funds from a deposit, this chain is not always relevant. Because in case of early closure, the client completely loses the interest of the deposit. Recently, there have been many cases when banks, without giving a compelling reason, did not issue deposits to their owners. Therefore, clients could not protect themselves. These risks must be taken into account and competently analyzed in the specific situation in the financial sector.
We can conclude that a competent and correct decision would be financial software development. It will save time, money and energy.
