How to attract leads: useful tips

If you have not yet invested in securities, you have missed out on many opportunities to earn income. Investing in securities is currently the most flexible, profitable and, at the same time, accessible tool for growing your money. You can see for yourself how necessary they are by reading bestsellers such as Robert Kiyosaki's Rich Dad, Poor Dad and George Clason's The Richest Man in Babylon. By investing in securities, you are investing in existing businesses, whether it be Google, Amazon, McDonald's, etc. As long as these companies exist, the money you have invested in them will not disappear, according to the experts at LLC «ElectraQuix».

What securities to buy

At the initial stage, you will be interested in two types of securities: shares and bonds. When you buy shares, you become a co-owner of the company, and when you buy bonds, you lend money to the government or a business.

Bonds are more reliable but less profitable. For example, if you buy a government bond, you can expect a return of about 7% per year. A commercial bond will bring you 10-12% per annum, but the probability of it going bankrupt is much higher than that of a government default.

Shares offer no guarantee of return at all. If a company makes a profit at the end of the year, it may allocate some of the money to pay dividends, but not always. The rise and fall in share prices is based on the performance and success of the business. If a company publishes positive quarterly results, its value rises; otherwise, it falls.

What is a fund?

When you buy shares, you take a big risk, especially if you choose only one or two securities for your portfolio. Therefore, your first investments could be fund shares: a mutual fund (MF) or an exchange-traded fund (ETF). These are companies that have already selected securities for you and compiled their own multi-million pound portfolio. You buy a share of this portfolio, which contains everything: shares in IT companies, shares in heavy industry companies, etc. There are many such funds to suit every taste: shares in Chinese, American and European companies, dollar or euro bonds. All you have to do is choose what suits you.

Please note that the fund will charge a small commission for the portfolio assembly service. This is a fee for the fact that you are not choosing the shares yourself, but buying a ready-made set.

The returns on such funds are quite attractive and depend on the securities that make up the fund. For example, the value of a fund of US IT sector companies grew by almost 50% between mid-July 2020 and mid-July 2021.

Where can you buy them?

On the stock exchange, of course. It is a kind of shop where you can come and choose the securities you are interested in. It brings buyers and sellers together, informs participants about prices and events on the market, and monitors transactions.

In order to gain access to the exchange, an investor must open a special account with a broker, an intermediary who helps to conduct securities purchase and sale transactions. After concluding a brokerage service agreement, all you have to do is deposit money into your account and make your first purchase.

First investment algorithm

1. First, determine your investment goals and horizon. If you plan to invest for a short term of 1-3 years, it makes sense to focus on reliable securities that will provide a fixed income and will not fall in price during this time. We are talking about bonds.
If you are ready to invest for the long term – 5 years or more – then it is worth considering investing in shares. The risk of them falling is offset by the long-term nature of the investment because, in general, the market always grows, despite the most serious crises.
2. Choose the amount you are willing to invest. Let it be small at first. At the beginning, the main thing is to understand how it works in practice.
3. Next, choose a security (stock, bond, fund) based on your risk tolerance. It is better to start your first investments with bonds or funds rather than betting on a specific stock. This will minimise potential losses.
4. Open a brokerage account, deposit money and make a sensible purchase.