Start investing may seem a challenge, but as with many things in life, you have to start and work your way. Let's say you have some savings and you want to start investing, for example, 1000 euros. We'll help you by introducing some of the various alternatives available and which ones to consider depending on your investor profile.
Traditionally, many people turn to options such as the stock market or public debt. These options have their advantages and disadvantages, and the choice depends on each investor's risk profile, financial knowledge and objectives.
Technology and innovation have allowed the appearance of fintechs, new investment opportunities and new ways to invest. One of these less traditional investment options is business crowdfunding. Solutions such as crowdlending and crowdfactoring, offered by Daskapital, allow investors to directly participate in the financing of companies by granting portions of loans or acquiring fractions of invoices. This approach not only offers potential for substantial returns and diversification but also helps support SMEs (small and medium-sized businesses), contributing to economic growth.
It's crucial to note that different investments carry varying levels of risk and benefits. At Daskapital, we prioritize informed decision-making and provide comprehensive resources to empower our investors with the necessary knowledge to make educated investment choices.
Start by defining your risk profile?
If you're looking for how and where to invest your first 1000 euros, before diving into the investment options available, it's essential to understand your own risk profile. This self-analysis will significantly determine the path your investment strategy will take.
Generally speaking, there are three types of investors: conservative, moderate and aggressive.
Investors with a conservative profile prioritize the security of their capital above all else, avoiding any risk of financial loss, so they tend to opt for investments that guarantee the preservation of the capital invested and have shorter terms, which generally offer more modest returns. For this type of investor, the security of the capital invested is more important than making a profit. In general, conservative investors are not very familiar with the financial markets and the world of investments, which leads them to be more cautious in their investment choices. Investments such as term deposits or savings certificates are suitable alternatives for those with this investor profile, in line with their preference for security and stability.
Moderate investors are somewhere between conservative and aggressive. This type of investor is looking for a balance: on the one hand, they prefer investment options that secure the initial capital, but on the other hand, they are open to longer investment periods and higher levels of risk in order to achieve a more attractive return. The moderate investor is not willing to risk all of their capital, but is comfortable allocating a fraction of their money to options with a certain level of risk in order to achieve higher returns. This type of investor usually has a basic understanding of the financial markets and the investment world and makes an effort to keep up to date with news and tips related to the sector. Products such as real estate funds or small, short-term investments in collaborative financing platforms such as crowdfactoring may be suitable for moderate investors.
Aggressive investors are the opposite of conservative investors. This type of investor actively seeks products that offer higher returns than the market average, accepting the risk of total losses or even losses greater than the capital invested, distinguishing themselves from other types of investors by their financial strength and ability to withstand losses. In order to always have a reserve fund to ensure comfort and liquidity, they only invest the part of their income that they don't consider essential to maintain a certain standard of living and which they can afford to lose. This investor profile is marked by in-depth knowledge of the financial markets and experience in the world of investments, closely following the factors influencing their investments. In the event of losses, they are always ready to identify a new investment opportunity to recoup the amounts lost. An aggressive investor's investment portfolio is usually quite diversified, with a predominant focus on variable income products such as shares, equity funds and alternative investments such as those offered by crowdfunding platforms like Daskapital.
Explore alternative forms of investment within your risk profile
Investment alternatives for moderate and aggressive investors have never been as varied as they are today. Particularly in recent years, we have witnessed the emergence of innovative investment and financing instruments.
For investors looking for a balance between profitability and security, indexed funds (ETFs or exchange-traded funds) are a very attractive solution. These investment funds mirror the performance of a specific index, thus offering diversification and a positive long-term trend. Since they are made up of shares in various companies from different sectors, these funds offer diversification that mitigates risk, although they don't eliminate uncertainty entirely. The idea is that the profits from some positions offset the losses from others, maintaining a balance in the investor's portfolio.
However, it is important to note that investors with limited financial knowledge should avoid large-volume investments initially. Here, roboadvisors emerge as valuable tools. These digital assistants represent the evolution of the traditional financial manager, using advanced algorithms to advise and manage investments. Robo-advisors are programmed to analyze investor preferences and automatically create a personalized portfolio that adjusts over time. The main advantage is simplicity and time-saving, as the user doesn't have to actively manage the investments, while retaining ultimate control over the decisions.
For investors with a slightly more permissive risk profile or who are eager to make a profit, an investment category that may not be as well known, but which offers good opportunities, is commodities. Investments in raw materials such as wheat, coffee, silver, cotton and gold - the latter often seen as a safe haven asset, especially in times of inflation - can be considered. Although they can be acquired physically, many choose to invest through specialized funds, shares in companies in the sector or on the futures market. However, it is important to note that investing in commodities can be complex and subject to significant price fluctuations, which may not be ideal for beginners.
Cryptocurrencies, such as Bitcoin and Ethereum, have also captured investors' attention in recent years. These digital assets have been popular with private investors, but it is crucial to be aware of their volatile and risky nature. Many investors have suffered significant losses due to the extreme fluctuations in the value of these currencies.
As already mentioned, investing in crowdfunding platforms is also an alternative that has developed significantly in recent years. At Daskapital, we understand the uncertainties that accompany initial investment. That's why we offer accessible and transparent alternatives suitable for different risk profiles, allowing investors to start their financial investment journey with confidence and knowledge.
Frequently Asked Questions
Invoice Advance is a crowdfactoring solution for short-term financing that allows companies to anticipate the payment of invoices receivable, obtaining immediate liquidity. Invoice Advance is managed by Daskapital España S.L., a subsidiary of Das Kapital Lda.
In the Invoice Advance collaborative financing model, companies publish the credits they hold on their customers on the Daskapital platform, and investors compete with each other to purchase, at a discount, part or all of the invoice. Through an auction process, they define the amount they wish to invest and the minimum return they require, and companies will be financed by the group of investors demanding the lowest interest rate.
On the invoice due date, the debtors (the company's customers) pay the credit, returning the capital invested to the investors. The profit comes from the difference between the amount invested in the invoice seller and the amount received from the invoice payer, which corresponds to the discount.
Crowdfactoring is a form of collaborative financing in which companies can receive advance payment for receivables owed by their customers through online platforms such as Daskapital.
In this model, investors purchase invoices (partially or in full) at a discount (which translates into a rate of return), advancing their value to companies. This allows companies to quickly obtain the financing they need, while investors earn a financial return by acquiring the right to receive payment of the invoice amount (partial or full) on the due date.
Invoice Advance offers advantages for both investors and companies.
For investors, it allows them to diversify their portfolio with short-term investments and above-average returns, choosing the invoices in which to invest (and the consequent level of risk and maturity) and the minimum rate of return they require, with security and transparency guaranteed by Daskapital, which analyses and verifies the solvency of the payers of the invoices provided by the assignors.
For companies, it guarantees immediate liquidity without resorting to banks, allowing them to finance themselves at even lower interest rates if they are assigning credits on companies with lower risk than themselves, as the associated risk, as perceived by the investor, is that of the invoice debtor.
It can be used by companies as a way to balance the risk level and maturities of their accounts receivable.
Each financing request or investment opportunity is subject to a rigorous risk analysis by Daskapital before being made available on the platform, based on:
- Accounting, financial and commercial data provided by the promoters of the companies;
- Credit information from Iberinform (Atradius Credit and Surety), such as ratios, information on incidents, legal proceedings and other independent data;
- Analytical and statistical models (credit score and limit);
- Document verification and, in some cases, verification of the accuracy of the information provided, among other procedures.
Daskapital requires real and personal guarantees and only publishes projects that meet the minimum criteria for risk and fair profitability. All this information is disclosed and made available in each financing request or investment opportunity.
If you need further clarification, don't hesitate to get in touch with us at support@daskapital.eu.
