Where to invest idle money to generate effective profits is a question that many investors are asking. Also, due to economic difficulties, choosing a safe and highly profitable investment channel is not easy. In the context of the global economy being strongly volatile after the Covid 19 epidemic, most investment channels have suffered significant financial losses.
Therefore, idle money should be invested in which field to make a profit is always a concern of many people, especially individual investors. Experts advise that investors should be sober in choosing a low-risk, safe channel and absolutely not put all their money into one investment channel. So, what should you do with idle money? Where to invest to make a profit effectively? To answer the above question, please follow the article below!
What is idle money?
Idle money is understood as a personal amount of money that is not needed for a certain period of time. This is the remaining amount after you have divided the expenses for life, including the reserve for emergencies. Normally, with this idle money, many people will choose to invest, seek more profits and expand assets, so that money can generate money again.
Suppose, if you do not use idle money to invest but just keep it intact, is it a good idea? The answer is no, because over time this amount of money will also be affected by inflation. When inflation increases, it means that idle money will lose its value. Therefore, investing is the way for you to protect your idle money from the risks of inflation.
Where should I invest my idle money?
In the post-Covid-19 context, the world economy in general is still complicated. Economic experts have stated that when you want to do business or invest at this time, you need to accurately determine the investment field. However, you also need to research the channel with the lowest risk level, thereby having the opportunity to create the most effective profit for your capital.
Real Estate Investment
In recent years, the real estate market in cities or economic centers, key economic zones is heating up. Along with that, the demand for buying houses for living of people is increasing. Investing in real estate is the most effective way to invest idle money today. This is a long-term and quite safe form of idle money investment. Real estate is considered an effective form of investment because of its long-term profitability because land is a form of material that exists forever, different from other types of products.
Not only that, the development and expansion of tourism means the development of infrastructure from transportation to residential and resort real estate, so more and more types of valuable resort real estate are born. This form of investment creates favorable conditions for investors with large capital sources through FDI, remittances, etc. In addition, banks always create conditions for customers to borrow to buy real estate with low interest rates and many attractive incentives.
Requires large and solid investment capital. In-depth knowledge and market sensitivity are required to make the right investment decisions. Long-term investment period, possibly longer than the original plan. Takes a long time to make purchases and complete necessary procedures. Liquidity is lower than other forms of investment. The real estate market can fluctuate strongly due to increasing speculative activities.
Stock investment
This is a very popular form of investment in developed economies. In Vietnam, stocks are still a new form of investment and the stock market in general is still quite young.
Investing in stocks is also a form of profitable investment from idle money that is very attractive to investors. Because the profitability of this investment method is quite high. It can be 2 to 3 times the amount of money you deposit in the bank and enjoy interest. This is considered a flexible form of investing idle money, easy transactions and convenient for both sellers and buyers. Participating in stock investment does not require too much capital, so it attracts more and more people to try their luck. The profit of stock investment also changes flexibly according to the market, the profit can be 2 times, 10 times. For those who have knowledge and understanding in this field, they are holding in the palm of their hand the opportunity for high profits.
However, high profits come with high risks, if you invest at the wrong time and have poor analytical skills, it can happen. You always need to spend time updating your financial knowledge as well as market fluctuations to invest at the right time.
Bank savings
Suitable for most large and small amounts of money. Low risk because the bank has deposit insurance, bringing peace of mind to customers. High flexibility, customers can choose deposit terms, deposit types with many interest rates.
The interest rate for savings deposits is around 4-7%/year, a relatively low rate, not bringing high profits. However, to receive the above interest rate, customers can only withdraw money (principal and interest) at maturity. If withdrawn before this time, the interest rate received is usually only under 1%. Bank interest rates can fluctuate strongly based on changes in macroeconomic factors.
Buy gold
Buying gold is a popular form of investment. They will buy gold and store it. When they need it or the price of gold increases, they will sell it and make a profit from the difference.
Gold is a precious metal, so it always retains its value over time. Even when the price of gold falls, its fundamental value remains unchanged. During market fluctuations such as inflation, gold will not lose its value. It is highly liquid, easily converted into cash.
The price of gold in Vietnam depends heavily on the State Bank. In addition, there is a large gap between the domestic gold price and the world gold price. Therefore, many investors are quite hesitant to invest in gold. There is a risk of theft if gold is not stored carefully.
What is the safest and most profitable way to invest idle money?
With the information that AHS has shared above, you can see that there are currently many different channels for profitable investment. Each form of investment has its own advantages and disadvantages.
Where to invest most effectively depends on your knowledge, capital, understanding and ability to analyze finance and market. If you have a large amount of capital, high ambition and quick to grasp the market, you can consider investing idle money in real estate, stocks...
And conversely, if you don't have much time to grasp and analyze market fluctuations, choose safe, low-risk investment channels, such as saving at the bank or buying gold... For the form of saving, customers just need to deposit idle money in a reputable bank and wait until the month to receive interest.
So it can be seen that where to invest idle money will depend on your risk appetite as well as your desired profit level. Depending on your experience and financial capacity, choose the most suitable investment channel for yourself!
Above are AHS's shares on methods to help you invest idle money effectively and earn high profits. Choosing which investment option to bring high efficiency depends a lot on each person. Visit AHS Property if you want to learn more about the projects, as well as update the latest real estate market information at AHS!
