Distinguish between types of investments and understand their appropriateness

Just as no two investors are the same, each type of investment also has distinctive characteristics that it's important to understand and evaluate before committing your financial capital.

Unlike savings products, which are guaranteed, investments are not. It is therefore necessary to carefully evaluate not only one's risk appetite, but also the appropriateness of the financial instrument one wishes to use or the investment vehicle one wishes to join.

Without claiming to cover the entire topic of investment options in a single article, let's take a closer look at some of the fundamental choices a person intending to invest must make.

Investments via digital platforms or in "classic" mode

Despite the proliferation of banking and financial apps, the physical channel of banks and financial advisors has not disappeared. Those who prefer face-to-face contact with their financial advisor continue to visit their office to find new solutions to grow their personal and/or family wealth.

Meanwhile, improved digital technologies have enabled banks, asset managers, and investment funds to develop a new and effective channel through which clients can select the investment instrument or vehicle that best meets their needs.

It should also be said that digital financial intermediation platforms have maintained direct contact with the customer, enhancing it through telephone communication, live chat, and instant messaging applications. This is what the platform does, for example. ActivTrades online investments to combine the technological evolution of financial markets with the need to maintain a close relationship with those who choose to invest through its channel.

Asset manager or direct investment

Another fundamental distinction to consider concerns the choice between an asset manager and direct investment.

By wealth manager, we generally mean a bank, an asset management company, a financial advisor, but also a mutual fund promoter. Specifically, it means entrusting your personal financial resources to third parties so they can best use your money and make it grow over time.

This solution is the preferred one for those who don't have much time available and have little financial knowledge in their trunk.

Direct investment is typical for those who want to personally manage their available funds. In practice, this means being able to consult in-depth analysis in the most authoritative economic newspapers, such as the daily newspaper online Milan Finance.

If your intention is to invest in specific stocks of publicly traded companies, then it becomes necessary to read financial statement summaries and periodic communications.

The investor who is personally committed to taking care of the growth of the own financial capital He chooses a compelling path, made of continuous discoveries and awareness of where he is investing.

Everyone must choose according to their own personal inclinations, while recognizing that there are few dogmas in the financial markets, and therefore even those more inclined to face-to-face contact with the intermediary can always reserve a small portion of capital for the digital investment channel and vice versa.

Disclaimer 

“The information provided here does not constitute investment research. The materials have not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such should be regarded as an advertising communication. All information has been prepared by ActivTrades (hereinafter “AT”).

The information does not contain a compilation of AT prices, nor can it be construed as an offer, advice, recommendation or solicitation to effect transactions in any financial instrument. No representation or warranty is made as to the accuracy or completeness of such information.

Any material provided does not take into account the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future results. AT provides an execution-only service. Accordingly, anyone acting on the information provided does so at their own risk.”