2021 is a year that has progressed in leaps and bounds as the world recovered from a most volatile 2020. As we move into the last quarter, investing in securities remains an upward trend and the bet of the vast majority.
The commitment to new start-ups also continues to boom in the country. In the first five months of the year, more than 1.95 billion euros were invested in around 160 transactions, with Catalonia leading the way as an autonomous community in terms of investment and technology, followed by the Community of Madrid. The industries in which the most is invested are logistics and delivery services, followed by the real estate technology or PropTech industries and the online market.
Strategies in 2021 continue to be based primarily on diversifying investments, betting on fast-growing start-ups, boosting liquidity, taking advantage of all the opportunities that the real estate sector can offer at the moment and trying to get rid of as much debt as possible.
How to maintain a profitable securities portfolio
For small investors, it is vital to stay informed about the existing options and the different investment strategies that can be applied. The constant when it comes to minimizing risks and mitigating the volatility or uncertainty of the financial market is diversification.
By diversifying our investments, we can expose ourselves to more than one market, which can become very lucrative, if there is an upward boost in a particular sector, and which also acts as a kind of insurance in case of a collapse of any of the investments that are part of our diversified portfolio. In this way, we also diversify as much as possible the diversifiable risk, also taking into account that there is always a non-diversifiable risk related to the entire system and the market.
What to consider before investing
Before you start investing, it is highly recommended to make the firm decision to do so, gather as much information as possible and change your mindset to that of a small investor. Below, you will find some factors to consider before taking the plunge:
- Inform yourself and familiarize yourself with the world of investment.
Although you can't know everything about all investment topics, it is highly recommended to know the basics and familiarize yourself with the most common terms used before you start investing capital.
- Develop your personal financial plan.
It will help you establish your starting point and your investment possibilities.
- Define your comfort zone and the risk you can take.
Likewise, it is vitally important to know our limitations and what risk we can take.
- Create and maintain an investment fund and an emergency fund.
Make sure you have a financial cushion, which can cover you for several months, in case of an emergency situation such as unemployment.
- Promptly pay off your high-interest debts.
The most profitable thing is to get rid of any type of high-interest debt such as credit cards and the like as soon as possible.
- Avoid possible frauds
Evaluate investment opportunities appropriately, ask questions and consider consulting an objective source to ensure they are genuine.
Experts are clear, it is advisable to invest as soon as possible and in the long term. By investing, you will benefit over time and accumulate profits.
