Ordinary people are also interested in investing, but they do not know what, or they are often prevented from doing so.
At the same time, the success of investing lies in the correct distribution of your investment. Fereo represents a simultaneous investment in four basic asset classes, which leads to ideal risk diversification. When investing in this form, the investor invests in fixed income instruments, stocks, real estate, and so-called opportunities. Fereo instruments are divided into 4 basic groups.
These include bonds, bond mutual funds, term deposits, and other deposit bank products. In this case, the investor must prepare for the fact that his investment will not earn much, but the return on it will be solid.
This money is mainly used to preserve its value. They should earn at least enough to beat inflation, that is, the devaluation of money. This tool also serves as a “brake” in the event of an unexpected situation in the financial market. When cash is needed, this money is the most affordable.
It is the component that brings the highest yield in the long run. We include the direct purchase of shares, equity, or index mutual funds as shares.
Based on historical returns, the shares have a long-term appreciation of more than 7%. This means that every 10 years they can double your assets. I do not recommend trading (buying – selling) shares, but choosing a buy and hold strategy, choosing the right companies whose shares the client will hold for a long time.
Another type of investment is an investment in real estate (residential and non-residential premises), or investment in real estate mutual funds. Real estate is a suitable type for spreading investment risk, as it provides a stable return in the long run.
Real estate does not make too much money but maintains the value of the property. First of all, it should be borne in mind that real estate in which one lives is not considered an investment unless one is renting or planning to sell it. The advantage of real estate is that it provides two types of income, rental, and growth in property value. In such a case, if a crisis occurs and a person rents his property, he basically doesn’t care that the price of his property has dropped by 20% because he has a tenant who pays him money.
Opportunities offer room for above-average returns. However, they are also the riskiest component of investing.
It is recommended to invest a maximum of 10% of your assets in the opportunities at the beginning. Ultimately, investing in an opportunity can be very lucrative, but it can also go bankrupt. One of the most frequently used opportunities at the moment is investing in cryptocurrencies or startups. If you play sports once a month, you can also consider your ticket as an opportunity.
In practice, it is very unlikely that all types of Fereo tools will start to decline. If an ordinary person wants to invest, he should have a certain financial basis. In other words, have a sufficient reserve created and the basic cost of living covered.
It is important to realize that investing is not just for the rich and everyone should invest. People are not sufficiently familiar with the issue of investing, so they should definitely use the advice of an independent financial expert when choosing a suitable investment strategy.