It is important, for example, to keep a minimum of cash, to diversify and to have savings in the bank in the amount of no more than three monthly expenses. This was stated by Swiss Life Select financial analyst Pavel Škriniar.
According to him, working with cash is very difficult, not to mention loss or theft. “Banks offer a guarantee, but it only covers the value of deposits and interest on them. They do not guarantee that you will be able to buy the same things in the future with the money as today. Only investment can protect against inflation. The less money depreciated by inflation, the lower the risk“, said Škriniar.
According to him, when choosing an investment instrument, preference should be given to products of companies that are under the supervision of the National Bank of Slovakia (NBS).. Investors thus avoid fraudulent schemes. “There is simply no such thing as a guaranteed and very high yield,” the analyst pointed out. According to him, it is necessary to start with little, while it is necessary to avoid offers requiring deposits exceeding the normal income. If the investment does not develop as expected, the damage caused by a small deposit may not hurt.
“Don’t bet everything on one card. Divide your investment into smaller parts and you will avoid disappointment in the event of a negative development. Appropriate diversification means that when one part of the investment fails, the other can succeed. It concerns both products and financial houses,” explained Škriniar.
He added that by investing regularly, it is possible to average the purchase price, as the value of the investment fluctuates over time. This way you can avoid buying at the least convenient time. He pointed out that long-term returns can only be achieved by long-term investing. “When looking for the location of your savings, use the consultation with an independent financial intermediary with a license in the capital market sector,” concluded the analyst.
