How to measure the level of risk an investment may have while making it?

In the midst of the geopolitical crisis that swept the world today and added to the electoral uncertainty ahead of the local presidential election, many are wondering how good it is to invest, or what the risk is in these situations.

According to Mutual Funds expert David Daza fiduciary actionRisk is the probability of incurring some loss over a period of time. “Applying the above to investments, the higher the risk exposure, the higher the rates of return, i.e. profits,” he confirms.

Similarly, the business emphasizes that risk in investments is the gateway to more or less likely loss-prone opportunities provided by the financial market through financial institutions such as banks or trusts that will invest their money in the assets they manage. Colombian Stock Exchange (BVC).

To do this, it is important to keep in mind that low-risk assets are investments in low-risk and low-profit government or bank bonds, such as CDTs. For medium-risk assets, invoice discounts and debt investments are included here. Your results will be seen in the longer term as your earnings will fluctuate.

However, high-risk assets include stocks or currencies as they have a greater profit potential, but this is associated with an equally greater risk of loss. Given its volatility, you need to know when to deposit and when to withdraw.

If you have a minimum maturity target of six months, excess liquidity or money that cannot be used for basic needs, one of the recommendations is to use Collective Mutual Funds, so your savings will increase at the same rate. inflation.

“The economy is cycles with up and down trends. The important thing is to take action and invest with the professionals, because this is the way savings can turn profits or profits in the future,” says Daza.

Before you invest, remember to ask yourself: What is your goal? How soon do you want to achieve this? What percentage of the money you will invest represents?

In line with this, analysts also state that: savings do not generate returns on their ownneither under the mattress nor in a bank account, hence the importance of reinvesting, for example.

“Saving is the foundation of the country and household economy, it is important to strengthen the habit of saving in people and in families in general, protecting them, their health, education and well-being in unforeseen events, other important and of course the quality of life, in addition, the habit of saving, recommended at any stage of people’s life cycle helps program and achieve goals,” says Wilson Triana, banking and insurance expert and consultant.

But in these times of geopolitical uncertainty and volatility, investors opted for restraint and seeking safe havens like gold or real estate.

Likewise, the oil sector, which is booming due to oil prices, may be the star option at the moment, but its volatility shows an unexpected risk. Besides the local political events that are electoral, geopolitical events should also be expected. “Although there are markets such as tech stocks that are experiencing an interesting recovery, it would be most prudent to show further development from Russia and Ukraine,” said Edward Moya, Oanda Senior Market Analyst.

Source: Lare Publica


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