The Risks of Major Investments – Improve Your Financial Health
The risk is never just the investment, but the use you make of it. But in general, we have, at least as risky:
Credit risk. The Treasury Direct is the least risky investment in the market, as it is guaranteed by the federal government. If the federal government defaults Treasury bonds, the economy becomes chaos, as much of the country’s money-including banks-is in those bonds.
If you sell a treasury bill before maturity you will be subject to the market risk of the bond price varying but not usually the largest in the market.
Credit Risk, again. It would be the risk of the bank to break, but you are guaranteed by the FGC up to $ 250,000 (including interest).
In addition, there is a risk of losing good opportunities, as Treasury Direct always pays more than savings. Then there is no need to continue saving!
Credit risk. It is the same idea of the Direct Treasury: the chance of the federal government to default on a debt bond is very low.
Fixed Income protected by FGC
Credit risk. Most fixed income securities (CDB, LCA, LCI, LC, LI, LH, savings) are guaranteed by the FGC. It guarantees you up to R $ 250,000, per CPF and bank. You can find out more on the FGC website .
It’s a little less secure than the Treasury Direct.
Here begins the Market Risk. ETF is the acronym for “Exchange Traded Funds”. They are funds traded on the stock exchange. They put multiple stocks together into one package, so you can invest in multiple stocks at the same time, even if you have little money. This is a very interesting way to start investing in stocks.
Consolidated corporate actions
Market Risk, mainly. Consolidated companies are less risky because they are more predictable. It’s much harder for Ambev (one of the biggest beer companies in the world) to do unpredictable things and give unexpectedly bad results than an unknown and novice company do the same.
Investing in Startups
The word is fashionable, so it’s good to talk about it. Startups are startups generally based on the lean startup method. That is, always make tests and quickly validate your hypotheses in the market. Like any start-up project, the risk of going wrong is much greater than a company already consolidated.
And for this reason, investing in them can give investors far greater returns (which is the case with angel investors).
Shares of companies that are not yet operating
The risk here is even greater than that of start-ups. The most emblematic case was that of OGX, oil company of Eike Batista. Without having even drawn a drop of oil, the entrepreneur conquered all the investors in the chat.
A lot of people relied on his propaganda, and ignored that his project had a huge risk of not working out.
Result? The operation failed and the company was unable to extract oil. A company that started out worth more than $ 1000 per share ended quoted at $ 0.05.
Invest in your own business
Risk of the operation going wrong. If you are a first-time mariner, the risk of things just does not work out and you lose money is great. It is therefore important to have a good reserve of money or other sources of income before devoting yourself to your own project.
Invest without fear!
Now we are talking about the risks, and you can walk more firmly in the investment world. Let’s go to the part that interests you: know the best investments for you.