The worldwide financial market offers many possibilities, how savers can invest their money. All of them offer different advantages and disadvantages. In the following text we want to show and explain them for you.
Let’s start with the very risky shares and equity funds. Booth are subject to large daily fluctuations at the stock exchange. Rapid price increases and sudden price decreases make this form of investment very unsafe. On the other hand the trading can be carried out very quickly. Shares can be sold at any wished point of time, so that the capital is provided to the investor immediately. Due to the large price fluctuations this form of investment is less suitable for short term investments.
Absolute security is promised by investments on savings accounts or savings agreements. While the savings account with its short period of notice is relatively flexible, with the savings agreements the customer ties his money for a fixed period of time where he cannot access it. Unfortunately due to the zero interest policy of the European Central Bank both versions offer little or no profit. Then there are the savings agreements subsidised by the state, better known as Riester-Contracts. With a bonus interest this contract promise higher profits. However a current decision of the Tübinger country court destroys this dream. Therefore the Sparkasse is allowed to clear the charged variable negative interest rates with the bonus interest rate of the Riester-Contracts. In the worst case the expected yields cannot be achieved.
Another safe form of investment are call money and fixed-term deposits. They offer a certain degree of flexibility due to agreed terms beforehand. But here the chances of profit are also reduced by the monetary policy of the European Central Bank. So the conditions for call money with a term of 6 months are about 0.7% per year and for fixed-term deposits with a term of 12 month about 1.0%. An end of this low interest phase is not yet in sight. Customers looking for safe and profitable investment possibilities must go beyond the European financial market. Investfinans AB assists you with advice and shows you the various safe and profitable opportunities which the financial market of Bahrain has to offer.