The Inverco data for May 2022 show once again that Spain is a conservative country in terms of investment: subscriptions in fixed income funds had a value of 1,458,564,000 compared to 29,332,000 for variable income funds National and international.
Regardless of whether you choose fixed income or equities, investing always carries risk. However, within the various product options, there are some that are safer than others, both because they represent a lower risk of capital loss and because they are easier to understand, especially for first-time investors.
For this reason, the experts at the financial comparator HelpMyCash.com explain which investment products are the most recommended for the most cautious investors who want to take their first steps in this world.
The number one point for choosing products wisely is to choose one that is easy to understand, and for that you also need to stay away from all the advertising that tries to convince novice investors to put their money in assets they don't understand.
The organization that watches over the interest of the investor in Spain, that is, the National Securities Market Commission —or CNMV— has drawn up a classification of the simplest and most complex products to invest in. "Depending on the knowledge and investment experience of each one, it is more advisable to hire one or the other," says Sara Gil, a finance expert at HelpMyCash.com.
Some of the simplest products are, for example, investment funds, which also explains why it is one of the favorite products of beginner investors.
When someone has no investment knowledge, one way to get started with more guarantees is to seek advice from an expert. Having the advice of a team of investment professionals at a low cost seems unattainable for an ordinary investor, but the reality is that it is currently possible to invest through intermediaries called robo advisors, which make it possible to make money profitable with the intervention investment experts at a very low cost.
What does this mean? Robo advisors offer to contract investment portfolios —groups of financial assets— that are prepared by experts with extensive experience in the area. The team of experts is in charge of choosing which fund goes in each portfolio, its correct balance and monitoring to see how the investment is progressing, readjusting when necessary.
The best news in this regard is that the commissions are very low compared to other traditional investment products, which are not only more expensive but also cause profitability to suffer due to the high costs. For example, in Spain's robo advisors, the total annual commission for an investment portfolio of about 10 funds is less than 1%.
On the other hand, you can also choose whether you prefer a portfolio with higher variable income —more risk— or with higher fixed income —less risk—, which allows you to adjust how cautious the investor wants to be.
“Robo advisors are a relatively recent market in Spain, but there are already thousands of people who trust their services. For example, Indexa Capital, which is currently the market leader, has more than 50,000 clients and continues to grow”, adds Gil, an expert in finance.
Another of the robo advisors that also stands out is inbestMe, which has the largest offer of investment portfolios with 11 different ones, from higher fixed income to higher variable income, so that each person can choose the amount of risk they want to assume.
Finally, Finizens has become an attractive option thanks to its commission program, in which it reduces the cost of management each year for users who continue to trust its services.
