Many savers are wondering how to invest safely today. Every saver knows that there is no such thing as a 100% safe investment, but there are a number of solutions that limit risk and protect against nasty surprises. In this guide we will try to find out which are the best safe investments today and their main features.
Best ways to invest safely today
TradeApp: Invest with 5€ from smartphone
TradeApp is the “fashion of the moment” when it comes to trading. It is the most recommended and downloaded app to start trading online even if you are just starting out. It allows you to start with just 5 € following a step by step guide to learn. TradeApp covers the first 5 trades at a loss so you can learn without risk.
TradeApp is accessible to everyone because it only takes 5€ to start investing online very easily. It is the most downloaded App in the industry. Online trading is becoming more and more popular among the jobs you can do at home or while traveling and as a result the need to be able to follow the markets from your smartphone has increased.
Buying home: a safe way to invest
Investing in brick has always been a risk-averse solution and offers satisfactory returns. The severe global economic crisis that began in 2007 is a clear demonstration of how safe it is to invest in the purchase of a property. Although the real estate market has come to a sudden halt and prices have fallen sharply, once the situation has stabilized, homes have seen their value return to pre-crisis levels.
However, this is an investment that involves significant amounts of money, so some attention needs to be paid. It is essential to evaluate the prospects offered by the area where you decide to buy the property and have the foresight to do real business in Italy but, above all, abroad.
Investing in government bonds
Many are wondering where to invest the money today. One of the most well-known and widespread forms of safe investment in our country are the so-called government bonds. These are debt securities issued by the Italian government and are able to guarantee the saver a certain yield at maturity. Why can it be considered a zero risk investment? For the simple reason that in order to lose all the capital the Italian state would have to fail: a decidedly improbable eventuality.
Despite the recent economic crisis, the risk of default feared by those who only wanted to speculate to make a profit and the downgrading to BBB by the most famous rating agencies, Italy is a country with solid foundations whose bonds represent one of the safest form of investment.
The saver can choose between different debt securities according to his needs and precisely:
– BOTs: is the acronym for ordinary Treasury bonds and are characterized by a short duration never exceeding 12 months, by being zero coupon (without coupon) and sold in minimum denominations of 1,000 euros. They are issued at a discount, i.e. purchased at less than the nominal value and resold at the exact nominal value.
– BTPs: these are, on the other hand, multi-year treasury bills, with a maturity of more than 12 months and a yield calculated on the basis of a percentage of interest.
– CCTs: these are treasury credit certificates and represent medium/long-term bonds with a maturity of 7 years and a yield linked to that of BOTs and a variable rate. They require a minimum investment of 1,000 euros.
– CTZs: they represent zero-coupon treasury certificates with a maturity of 24 months. Also in this case a minimum investment of 1,000 euros is required.
This type of investment offers a higher risk than government bonds, as the bonds are issued by both Italian and foreign private companies with the aim of self-financing. In this case the possibility of bankruptcy is higher, even if choosing very solid realities is almost impossible. The yield can be fixed or variable and will be on average higher than that offered by government bonds.
Deposit accounts and savings accounts
Another absolutely safe form of investment is deposit accounts. For many characteristics they can be compared to ordinary bank accounts, with the substantial difference that in this case the holder receives a percentage of interest on the amount deposited.
Of course we are talking about very low returns in the order of 0.10% gross per year, with the possibility of withdrawing the money at any time. If, on the other hand, you decide to tie up the deposit, then you can get interest of up to 1.50%, but if you need to have the capital you face heavy penalties.
Savings accounts also guarantee a certain annual interest rate, as well as a return on all the capital invested. In practice, the saver does not run the slightest risk and at the same time gets a guaranteed, albeit very low, return. As with deposit accounts, it is possible to tie up the money paid in for better treatment.
They are often identified by the acronym CAP and consist of private companies that seek to raise money from investors, with the aim of making capital through targeted investments. A feature of the funds is the diversification of the portfolio, so as to minimize risks and ensure the most profitable economic return possible. Although they are a good investment tool, it is necessary to carefully assess in which markets the fund operates and the value of the fees required for entry and management of the fund.
Investing using the RIPs
PIR stands for individual savings plans and is an attractive financial instrument that limits risk while offering good capital appreciation. It is a medium-term investment introduced in the 2017 Budget Law, in which the owner decides to bind its savings in favour of small and medium-sized Italian companies. Each individual RIP can have a maximum value of €30,000, with a duration of 5 years. A single saver can invest a maximum of 150 thousand euros in PIR, obtaining in exchange an annual income and important tax benefits: he will not have to pay taxes on capital gain.
This type of investment can be considered very low risk and has the primary purpose of supplementing the future state pension. It is a solution chosen above all by self-employed workers and craftsmen who are among the categories with the lowest pensions. With this solution, a certain monthly amount can be set aside with an annual revaluation, so that the capital accrued in the form of an additional life annuity to the retirement pension can be paid back at the end. Employees can decide to set up the pension fund by paying a monthly portion of the severance indemnity or an amount of their choice into a private pension fund.
Investing in postal products
Many citizens choose to entrust their savings into the hands of the Italian Post Office. In fact, it has always been one of the safest forms of investment for two reasons: on the one hand, financial products with medium-low risk are offered, for the most part, and on the other, you are guaranteed to have one of the most solid financial groups in Italy behind you. Savers can make use of investments such as bonds, insurance products, mutual funds and a wide range of flexible financial products. For those who have large sums of money and want zero risk, they can choose postal savings bonds: an alternative to leaving large amounts in their current account without receiving a single cent of interest.
As we have seen, there is certainly no shortage of opportunities for those who want to invest their savings without taking risks. Even if you can never have absolute security, the financial instruments and solutions we have described all offer a high guarantee of seeing your assets revalued, even if at low interest rates, and get your entire capital back at any time or when the subscribed product expires.