10 Investment strategies to multiply your money

Did you know that investment strategies can help you maximize your wealth, or enrich your capital in the medium or long term?

The idea with this article is to tell you what investment strategies consist of and how you can make profitable investments that allow you to reduce risks and multiply your profits.

Once you finish reading this guide, you will be clear about what these strategies consist of, you will be able to choose the one that best suits your profile as an investor and finally you will be able to start investing your money intelligently.

In other words, you will be able to make financial decisions with information, criteria and analysis, which is essential for money to start working for you and to build your assets.

Investment strategies are understood as a set of processes that allow you to create a portfolio of securities or investments.

In simpler words, they are criteria that will help you choose the best financial assets (fixed or variable income), in which you can successfully invest your money.

It should be noted that most people who want to invest their money, and do not have financial knowledge, rely on investment funds to manage their money efficiently.

If this is your case, it is important that you understand what the investment strategies consist of that will make your money work for you, identify your main objectives and above all, know which one fits your profile.

Consequently, it is necessary that you educate yourself on the subject, either by reading financial education books, taking courses and studying about how money works, so that you understand the risk associated with your investments, as well as the expected return.

Although there is a wide variety of investment strategies, it is undeniable that most have one element in common; and it is that each one, in its own way, allows you to take advantage of the inefficiencies of the market to obtain great benefits.

However, for this to be possible and for you to make money work for you, you must know how they work, and above all, you need to define goals that can be achieved, and second, that are measurable and realistic. 10 Investment strategies to multiply your money

Before choosing between real estate investments or buying gold, you should know that there are, broadly speaking, two types of investment strategies:

Passive investment strategies that are characterized by reducing transaction costs to their minimum expression. These do not require you to update your investments as often, and they have a long-term horizon.

Active investment strategies that focus on optimizing estimated return. This implies costs in the short term because you must balance your portfolio, make transactions and review its behavior in the short and medium term.

So which one suits you best? This will depend on your financial objectives and, above all, on the relationship between risk and return that suits you best.

To clarify this, if you are a conservative investor, you probably won’t be interested in trading CFDs, while someone who is low risk aversion will be interested in this market.

With that clear, let’s talk about investment strategies that will put money to work for you. The idea is that you study and understand them as much as possible before deciding to make your investments, in this way you will make sure that your money can yield the expected results.

Investing in the stock market represents one of the oldest and most effective investment strategies, and therefore, a large part of the population is very well familiar with them.

In short, they consist of buying shares on the stock market that allow you to significantly increase your wealth.

For this you must rely on a certified broker, since natural persons are not authorized to carry out these transactions by their own means.

Additionally, you should know that you can not only buy shares on the stock market, but also other important investment instruments such as bonds, titles, or certificates.

In fact, we have created a beginner’s guide for you to learn how to invest in stocks step by step.

At the same time, you can buy shares through digital trading platforms, or in the safest or most conventional way: through investment funds.

Mutual funds are institutions run by financial experts that help less experienced investors get the most out of their money.

In essence, they have the necessary expertise to define the best purchase offers, as well as the number of instruments to buy, and of course, the expected risks and returns.

So if you don’t know very well where to start investing your money, here we explain what investment funds are and how to choose the one that gives you the greatest benefits.

Buying long-term shares can help you retire with an attractive income, or even achieve the financial freedom you long for as soon as possible.

Historically, the annual return on these stock investments averages 6-7%, however, this is not guaranteed.

The magic begins to happen when this profitability accumulates and you manage to make these investments grow with compound interest, which in the long term translates into large sums of money.

The generation of income, from the dividends of the shares, is also part of the best investment strategies in the market.

This type of investment is part of the buy and hold projects, and is considered one of the simplest or most sensible investment strategies.

It is characterized by offering long-term returns, so if you are looking for immediate financial satisfaction, that is, to earn quick money, this is not your best option.

At the same time, it is relevant to mention the Dividend Growth Investing (DGI) strategy, since it also generates income from dividends. Although in this case the investments are made in companies that enjoy important quality criteria.

If you make sure to choose companies with low payouts you could get a 50% profit on your investments. In short, you must make sure that your profits are on the rise so that your future dividends grow exponentially.

Financial experts agree that investing in value, or Value Investing portfolios, is one of the best ways to increase your wealth in the immediate future.

This mechanism consists of making investments in securities that are usually undervalued by the market, with the purpose of obtaining a great return.

Did you know that Warren Buffett became the richest man in the world after relying on Value Investing? As is, and all it did was buy companies with great competitive advantages at really reasonable prices.

And this is just the nature of this investment strategy: buying something below its true value.

Buying companies at value, or companies that have a margin of safety, can earn you a higher return than investing in expanding or growing companies.

This is a variable income investment strategy that can help you increase your savings in the long term, so that the profitability to be achieved will be very positive. For this, you must learn to invest in the stock market, to identify companies and the right moments to make your investments.

Investments in trading have gained a voracious boom in recent months, especially because they offer short-term returns.

However, they require a lot of tact, expertise and practice, otherwise the risks and losses could play a trick on you.

At this point, the best advice we can give you is not to make these types of investments if you do not know the market well, because it is very likely that the results of your actions will be unfavorable.

Trading is based on the establishment of a price interval, based on an action and a certain time. Today it generates substantial returns, as long as you make investments when said price is at its lower threshold, or sell when it occupies its upper threshold.

There are several types of trading that depend on the trading time, that is, according to the period of time that your investments last:

The day trader: Refers to price thresholds that vary from day to day. In this sense, if you dare to invest in this way, you will buy and sell assets that enter and leave the market on the same day.

Such assets are often highly liquid, and therefore tend to offer you a significant and immediate return if you know how to trade effectively.

Swing Trading: This strategy refers to the repetition of the same operation in the medium term, that is, it will not give you quick results, nor as fast as those of the daily trader.

This means that the gains are really small since they come from the market trends that keep a certain asset afloat. In general, the terms of activity of this exchange strategy, or trading, can extend for days, or even for a couple of weeks.