3 minutes
Editorial Invest in Slovakia
Investing. We all know we should do it, yet we often hesitate too long and miss out on gains that could have been earned since our 20th birthday.
This is mainly due to the lack of financial education directly from school and also the fear of losing the invested funds. So in today's article we will focus on the 2 main types of alternative investing and the 3 main reasons why collective investing or crowdfunding may be right for you.
You don't need to study the whole internet when deciding whether to invest or save your money. You just need to be aware of a few basic benefits of investing, specifically collective investing or investing through crowdfunding.
These are the main motives of those who choose to invest collectively or through crowdfunding:
Both collective investment and crowdfunding are used to appreciation of your free funds. One of the biggest advantages of collective investment is high probability of achieving higher returns than in a fixed-term account in the bank, with a long-term investment horizon.
You don't need to have tens of thousands of euros at your disposal to start investing. You can make your first investment in the order of hundreds of euros, which gives everyone the opportunity to invest.
In the case of collective investment in mutual funds or investing through real estate crowdfunding, a big advantage is higher security of investmentas in individual investing, given the spread of risk.
For mutual funds, the funds invested are spread over a portfolio of securities, and so are protected from total loss in the event of an adverse development of one, or even several individual securities.
In real estate fundraising, you will in turn invested the amount appreciates according to pre-agreed ruleswhich is a huge advantage you won't find anywhere else in the financial market.
The first step in starting to invest collectively is choosing the right form of collective investment. There are two basic types.
The first type of collective investment is collective investment in financial marketswhich provided by the management company. The latter on behalf of the investor collected funds invests in mutual funds under its management.
Functioning of of collective investment in mutual funds is quite simple. Investor purchases a unit trust, which is considered a security. The fund manager then enters the world's financial markets with the money raised and trades the money. The proceeds can either be paid to the investor or directly reinvested in the purchase of other securities.
Professionally managed mutual funds should be able to surpassing in yield individual investors, who mostly lack information and experience. But this is often not the case, because management of the investment portfolio costs the investor considerable fees.
In the case of the reality of crowdfunding the investor puts his/her money into the campaign of a specific investment project through a platform such as Investment Slovakia.
Money collected from a number of investors is subsequently raised in the form of a secured special-purpose loan will be provided to the main investor for a given investment project, at a pre-agreed interest.
The future return on the investment is thus already known to the investor at entry to the investment.
Conditions vary from one specific investment project to another. If the crowdfunding is not successful, the amount invested will be returned in full to the investor's account.
Status of investor account is always available in the private online interface. An overview is also available of individual transactions and all relevant information about them.
The undeniable advantage of real estate crowdfunding through the platform Investment Slovakia Is investing without any fees. The platform earns money by providing loans to the owners of investment projects.
The amount of the minimum investment is also favourable, starting from EUR 100. If you are an individual over 18 years of age or a legal entity, you can invest in real estate projects right away by clicking on this link.
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