We’re back talking about investments!
⚠️ The main disadvantage of diversification
In the wake of a crisis it would bankrupt you. Your assets, bonds, real estate would come crashing down. Collectibles won’t be a way out either, collectors won’t be interested in buying anything. Creditors and bankers would chase you asking for money. In the end all your property would be sold for nothing. We don’t think of that as an option.
🏦 Bank deposits
Most people know what bank deposits are. They are also an investment. The biggest advantage of bank deposits is that you would always get your money back. Although they have an obvious disadvantage as well - low profitability.
🔰 How to make money using bank deposits?
Small banks could loan your money at high interest. But first you should always check if the bank has a credible system of deposit insurance.
🛢 Structured deposit
A structured deposit is a very nice thing. They allow you to embody any ideas without any risks. A structured deposit could be used if you’re saving money for something expensive. If you get lucky, structured deposit would make you much more money than a regular deposit. If you don’t get lucky, you’re not losing anything.
🤔 How does a structured deposit work?
A structured deposit is essentially a combination of a deposit and an investment product, where the return is dependent on the performance of some underlying financial instrument. You could have profit from both a deposit and an investment product, or the profit from a deposit would cover any loss of the investment product money.
🔱 Is structured deposit a good thing?
In our opinion, it is one of the best kinds of investment. There are numerous types of structured deposits, the profit could be 12% for one type and 300% for another type (not a usual thing but it happens).