Are you looking for valuable investment tips to strengthen your finances and help you reach your financial goals? Then you've come to the right place.
Get started investing with our investment guide, where we provide you with important investment tips to get you off to a good start with investing.
We share our top tips to help you become a real investment shark in no time.
Before you start investing, there are a number of things you should consider and decide on to optimize your chances of success and to ensure you don't make a mistake with your hard-earned money.
The most important things to consider are:
Our first investment tip is to set a framework for how much money you want to invest. Do you want to start small and test the market, or do you already feel so confident about a particular investment that you want to put a larger amount of money into it?
How much you are ready to invest can influence what makes the most sense to invest in. Some investment types require more capital than others, and you should also be aware that with smaller investments, you need to keep an eye on whether the brokerage and fees on the investment are too high in relation to the size of the investment.
In addition, it is of course also relevant to find out how risk-averse you are. The different types of investments are associated with very different risks. Some types - such as bonds - are known for a generally low level of risk, while investing in e.g. cryptocurrency is associated with incredibly high risk.
Therefore, you should never invest more than you can afford to lose again. The market can go up and down, and you can unfortunately risk being unlucky with an investment that otherwise felt like a sure winner.
Read the post: Risk when investing
It's also always important to consider the time horizon when investing. Some types of investments are more long-term than others, so it's important to consider the time horizon when choosing what you want to invest in.
Investments rarely provide high returns overnight, so consider how long you can afford to go without the money you're investing and whether it still makes sense to put your money into the investment. Long-term investments are typically the safest, so if you need your money back soon, it may be too risky to invest it in the hope of a quick return here and now.
It's also a good idea to carefully consider which type of investment best suits your interests and goals. By choosing an investment that appeals to you, you'll be more motivated to learn more about it and dive deeper into the market. This will give you a tangible benefit as you will be better equipped to make informed decisions and identify potential opportunities.
Knowledge is power when it comes to investing. That's why it's super important that you make a thorough effort to get to know the market before you invest. No matter which market you end up investing in, there will be specific dynamics and economic conditions that are important for you to know before you put your money at risk. So, make sure you set aside enough time and resources to research the market properly before investing, as this will give you the necessary insights and knowledge to make informed decisions and increase your chances of success.
As an investor, you are naturally always looking for the best possible return. In this context, the question of which investment offers the highest return is always at the center of attention.
However, there is no clear-cut answer to this question.
The dream, of course, is to find the perfect investment opportunity where the prospect of high returns is good while the risk is at rock bottom. However, you have to be exceptionally good (or lucky) to find these opportunities, so it's important to realize that the potential for high returns typically comes with a degree of risk.
Below, we'll go through some of the 'classic' investment options, as well as some of the alternative investment options that you might not have thought of at first.
Investing in shares is probably what most people think of when they hear the word 'investment'. And shares are also an excellent entry point for beginners looking to get started with investing.
When you buy shares in a company, you become the owner of a small portion of the company's future value. This means that if the company increases in value, your share will do the same and you have the opportunity to make money from your share investments.
To buy shares, you need to create an account on a share platform or use your bank as a broker. It's often more cost-effective to use a dedicated trading platform as they typically offer lower trading fees and more tools to monitor and manage your investments. By choosing the right trading platform, you can easily and conveniently trade stocks and keep track of market developments.
Risk: The risk is high when buying individual stocks, but the more different stocks you have in your portfolio (diversification), the lower your risk will be.
Expected return: 7-10% per year on average.
Another classic form of investment that has historically been widely invested in is bonds. A bond is basically a debt instrument that you can invest in. This means that when you buy a bond, you are lending money to the issuer of the bond - typically the government, a mortgage bank or a company.
When the borrower pays off the loan, you receive money in the form of interest.
Bonds are a fairly low-risk form of investment, but the return is correspondingly lower.
Risk: Low
Expected return: 2-5% per year on average.
If you dream of investing in something physical, real estate investing might be the choice for you. Real estate investing presents an exciting opportunity that has historically yielded quite decent returns. However, it's not for everyone as it requires quite high start-up costs.
At the same time, there is also more ongoing work compared to investing in e.g. stocks and bonds, as the property needs ongoing maintenance, and you may also need to find tenants if you want to rent out the property. While it can be challenging, real estate investing is also full of potential. Over the years, property prices can rise, which can result in an increase in the value of your investment. In addition, renting out properties can provide you with a stable source of income and the opportunity to build a passive income stream.
Risk: Depends on your risk appetite
Expected return: 7-10% per year on average.
Cryptocurrency investing is a new classic in the investment world, and there has been a lot of talk and hype about it over the past few years. A cryptocurrency is a digital currency that operates without a central authority, such as a central bank. Instead, cryptocurrencies are managed through a technology called blockchain, which is a decentralized and transparent record of transactions.
The super-volatile (fluctuating) market has attracted a lot of attention, partly because of the incredible amount of money that can be made by investing in different cryptocurrencies early on.
Bitcoin is the most well-known example, as it has exploded in value since its inception - and has fluctuated wildly along the way. If you had bought one bitcoin for around $25,000 in 2019, by 2023 it would have been worth over $180,000. That kind of return is hard to get elsewhere, but conversely, few (if any) other markets fluctuate as much as crypto. For example, if you had bought Bitcoin when it peaked at the end of 2021, you would have had to pay just over DKK 420,000 for one bitcoin.
So, there are also many examples of cryptocurrencies that fluctuate wildly, and many end up going bust.
Risk: Super high due to the extreme volatility of the market
Expected return: The market is still so new that it's hard to say anything intelligent about the expected return. You can expect big gains, big losses and everything in between.
In addition to these 'classic' investment options, which are some of the most commonly invested in, there are a wide range of alternative investment options that you may not have considered.
For example:
The possibilities are endless, and no matter what you choose to invest in, it's important to prepare and think carefully.
When investing, you typically want to make as safe an investment as possible - but is there such a thing as a 'safe investment' in 2023?
Unfortunately, the answer is basically no.
Investing always involves a degree of risk and it's impossible to predict future market conditions with certainty. However, if you want to invest with low risk, there are certain strategies and approaches that can help minimize risk and increase the chances of a positive return.
On the one hand, you can actively seek out some of the lowest risk investments (e.g. bonds), but otherwise, the best advice is to diversify your investment portfolio.
Diversification involves spreading your investments across different assets, sectors or geographies. By having a broadly diversified portfolio, you can reduce the risk of large losses as different investments tend to react differently to market conditions and events.
When you diversify your investments, you create a foundation of different assets that aren't necessarily closely correlated to each other. For example, you can invest in stocks from different industries, such as technology, healthcare and energy. You could also consider investing in different types of assets, such as bonds, real estate or commodities. Furthermore, it can be beneficial to have exposure to different geographical areas to reduce the risk associated with local economic conditions or political events.
By diversifying your investments, you potentially achieve better risk-adjusted returns and reduce the likelihood of large losses. Please read the post Investment options.
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