“How to start investing ?” Ask yourself this question, the first step is taken. Amid so many fees, taxation, and fluctuations involving the financial market, it is common for people to be afraid to start applying. However, with interest and will, the possibilities are endless.
Financial education is the foundation of every novice investor, which enables more assertive and conscious decisions when choosing which asset to add to your portfolio. To help you understand how to start investing in the financial market, we have separated some tips. Check it out below!
Know your goals
Before you start investing in the market, you need to find your goals, that is, why it is so essential to saving this capital. The reasons can be the most varied: from making an exchange to saving for a future emergency.
The important point of this step is to find a way or reason to control your earnings, in addition to preventing income from being wasted in other directions.
In this step, you also determine the type of liquidity — the ease with which the asset is sold — and the term for your investment. In other words, whether it will be short, medium, or long term.
Find your investor profile
The next step is to find your investor profile. The profiles are divided into three main categories: conservative, moderate and aggressive — covering investors who want to know how to start investing from scratch.
The conservative model is the profile that aggregates investors who prefer security over high yields. However, it can also be applied to beginners in the financial market;
The moderate profile is attributed to those investors who value the profitability of their asset portfolios, but still prefer not to take large risks, such as investing in stocks for beginners,
The aggressive investor is credited with the best types of returns in the financial market, but that means taking risks. This type of profile is the one that most values income and knows the financial market, that is, knows how to take advantage of the fluctuations of the Stock Exchange, for example.
Amid so many asset options, it is normal for a beginner not to know where to start investing. In general, investments are evaluated by experienced investors according to the risk, profitability, and liquidity they represent in the asset portfolio.
In addition to these assessments, investments are divided into two ways: fixed income and variable income. While the first is considered safer, the second is said to be more profitable. Want to know more? Check it out below.
1- Fixed income
More suitable for investors with a conservative or moderate profile, the fixed income modality consists of public and private bond assets, in which returns are generated by fixed and floating rates, causing a predictable aspect to the investment.
With fixed rates, the fixed percentage charged is determined in the contract. While floating rates are linked to an index, such as the Selic rate, the basic interest rate.
Currently, the Selic rate is low, affecting the returns on investments to which this index is linked, such as traditional savings and the Selic Treasury.
2 - Variable income
If you've already thought about how to start investing in the Stock Exchange, know that this investment is variable income and considered high risk. Therefore, it is more suitable for those who have already tried investing in fixed-income assets.
As it is a market that constantly undergoes fluctuations in values, the Stock Exchange (B3) requires experience from those who will invest, that is, investors with an aggressive profile who know how to start investing in stocks, reversing possible losses in times of crisis.
The stock market usually generates more short-term profitability, unlike fixed-income investments, which require more time for capital to be redeemed.