With negative interest rates currently standing at 0.07%, you are slowly losing your money by leaving it in the bank. It is therefore not surprising that more people are thinking about investing their money. But what should you invest in?
There are many investment options to choose from - all with different risks and potential returns. It can therefore be difficult to navigate which types of investment are right for you.
That's why many new investors ask themselves: "What should I invest in?".
To help you answer that question, we have compiled the most important information on the most common investment options on this page, so you can get off to a good start and invest safely.
Investing can bring both large profits and large losses. There are many investment options with different levels of risk. You should therefore consider how you want to invest your savings. Do you want to invest for the short or long term? How much risk are you willing to take with your savings? Do you want to be active or passive in the market?
If you're not sure what an investment is, you can find out more in our guide here.
On this page you can find an overview of the different investment options available and what you need to pay special attention to in terms of investment options:
When talking about investing, the majority of people will probably think of stocks. Shares are issued by companies and traded on stock exchanges around the world. When you buy shares in a company, you are essentially buying a small piece of the company. This gives you the right to share in the company's profits and dividends.
If the current company increases in value, your share will increase in value. Similarly, if the company does badly, your share will fall in value. This means you risk losing the money you have invested.
The price of a share depends entirely on the type of share. An expensive share is not necessarily better than a cheap share. Instead, it depends on the number of shares that each company has for sale.
There are generally two ways to get a return on your shares. One way is to buy a share and then sell it for more than you bought it for. The other way is by getting dividends from different shares (dividend stocks). When you receive dividends on a share, this is because a company pays out some of its profits. However, it is not a requirement that a company pays dividends.
The easiest way for you to acquire shares is to open an investment account - either with your bank or through an online trading platform such as Nordnet or Saxo Bank.
Equities are one of the most rewarding forms of investment, but they also carry a high level of risk. Equities are generally the riskiest investment option. This is something you should consider if you want a safer investment.
Bonds are a loan issued either by governments, credit institutions or companies. When you choose to buy a bond, you are making a loan to the bond issuer.
This loan runs for a fixed period of time, during which the issuer undertakes to pay the bondholder the fixed interest rate once or several times a year.
The interest rate as well as the fixed time period will determine your investment over time. Here you can choose between short-term bonds of approximately 1-3 years, or long-term bonds with a residual maturity of more than 7 years.
There will always be some risk in investing. However, the risk of investing in bonds is generally low and is therefore suitable for the more cautious investor. However, the return on bonds is also somewhat lower.
With an investment fund, your money is pooled with other investors' money. As an investor, you own a share of the pool in proportion to the amount you have invested. The returns, costs and losses of each investment fund will be shared between you and the remaining investors.
There are several types of investment funds, but the main ones are
Investment funds work on the principle of risk diversification, but each type of fund obviously comes with different risks and return opportunities. Equity investment funds will obviously have higher risk, but also the potential for higher returns. Conversely, bond funds will have lower risk but also lower returns.
Real estate investment is an alternative investment that has become increasingly popular in recent years, and for good reason. At present, investing in real estate can be a significantly better and safer investment than investing in both stocks and bonds.
One reason for this is that more people want a passive income with high and stable returns without having to take a high level of risk.
One advantage of investing in a loan for a real estate project is that real estate has a fixed value. This means that they will not fluctuate to the same extent as shares, for example. There is therefore much less reason to worry that your investment has lost 5, 10 or 20% of its value overnight.
However, not everyone has the necessary capital to buy a property. This is where Fundbricks comes in, and gives everyone the opportunity to invest in loans for good Danish real estate projects at a high fixed interest rate. What we also know as crowdlending.
You can read more about how crowdlending works here.
Are you interested in getting started investing in real estate projects through Fundbricks?
You can find out more about Fundbricks' ongoing projects here.
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Historical returns are no guarantee of future returns. The money you lend to projects can therefore increase or decrease in value and there is no guarantee that you will get back the full amount lent.
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