Where to invest idle money to make effective profits is a question that many investors are asking. Also, because of economic difficulties, choosing a safe and profitable investment channel is not easy. So, what should you do with idle money? Where to invest to make effective profits? To answer the above question, please follow the article below!
What is idle money investment?
Investing idle money means buying a certain type of asset when you have a surplus of money that has not been used for any purpose. That investment will generate profits and increase in value in the future. Some popular forms of investing idle money today include: Buying gold, buying stocks, buying real estate, opening a company, opening a store, buying open-end fund certificates, etc. However, the process of investing idle money in the above channels often requires a long-term and is somewhat riskier than saving money in a bank. However, if successful, it can bring relatively large profits to the investor.
Real estate is still a safe and effective investment channel.
Real estate is always a field that brings high value to the national economy, so it attracts many investors to invest in this field. Real estate investment requires sharpness, understanding and financial stability as well as knowledge to be able to earn high profits.
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.
Invest idle money in stocks
Flexible investment, easy buying and selling bring convenience to investors. No need for large capital, no limit on participants. High profitability, so choose the right target, have calculation and vision.
Low profitability, high risk. Regularly update financial knowledge and market situation to invest at the right time. Stocks can increase artificially leading to sudden increases and decreases. Insider trading affects stock prices on the market.
Savings
This is one of the most popular forms of profit. All banks today focus on capital mobilization channels with many terms and types of savings to meet customer needs.
This is the safest and most popular choice for idle money. That is, it is suitable for young investors entering the profession because of its safety and certainty.
Saving money is a channel to keep money for those who want to be peaceful, avoid fluctuations or risks in the financial market. But for those who have a high desire to earn money, are passionate about business and want their money to grow quickly, saving money in the bank is not the optimal choice.
Gold and foreign currency investment
Buying gold is also an effective and popular channel for investing idle money today. It is also chosen by many people. Because investing in gold is a safe way to keep assets. Gold does not depreciate like paper money. Besides, the supply of gold is also limited, so the price of gold is always stable, even increasing with little tendency to decrease.
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.
Commodity derivatives investment
This is also considered a great form of investment for the question "What to invest in idle money?". Nowadays, when the commodity trading market has become more open, investors are no longer worried about inflation when investing idle money in this field.
On the other hand, you can also buy product insurance to limit risks to prevent capital loss.
This investment field is protected and under the management of the Ministry of Industry and Trade, so it is highly legal. Therefore, investors will feel more secure when investing money using this method.
In short, if you are still hesitant about your investment, you should divide your idle money into different investment channels. For example, with a capital of about 1 billion VND, investors can divide it into 2 channels: 50% invested in real estate and the rest can be invested in gold and savings.
