We must acknowledge that living in a world with ultra-low interest rates has several major impacts on our finances. An era of “free money” as some experts call makes it hard for people and companies to find decent yields. As a result, it is much harder to grow your money in a period when public entities want it to be spent aggressively. Because of that, today we’ll talk about several alternatives you have in order to avoid the impact of zero or negative interest rates.
Alt text: ways to grow your money
Since there no need for knowledge of financial markets, economics, etc. mutual funds represent one of the simplest investment securities for retail and corporate investors. Basically, a mutual fund is a security that enables investors to pool their money together into one professionally-managed investment.
Considered as “baskets of investments” mutual funds can invest in bonds, stocks, cash, and many other assets, a combination of them forming what’s usually called a portfolio. Offered by brokerage firms, banks, insurance companies, etc. mutual funds carry the advantage of being accessible and offering a broad market exposure.
If you don’t want to let your money in the hands of others, you could find a way to invest it yourself. Forex trading with brokerage companies like easymarkets.com could be an option now that technology had enabled any individual to access the biggest and most liquid financial market in the world. Choosing the right trading platform and the best set of trading features is very important, while also developing your own trading system would be a decisive factor for your results. Unlike other markets, volatility in Forex is at record-lows, which will be an ideal place to start learning how to grow your money.
Important figures like Warren Buffett, David Swensen, and John Bogle had many times advocated that people who get exposure to index funds. A particular type of mutual fund with a portfolio matching the components of a benchmark index like S&P 500, or NASDAQ, an index fund is another interesting option, given that it is said to provide broad market exposure, low operating expenses, and low portfolio turnover. Investing in index funds will offer you access to the biggest companies in any given industry (tech, industrials, consumer discretionary, etc.). Longer-term, index funds had proven to provide decent returns for passive investors and if this is what you’ve been looking for, you should see more about this.