Variable income is a type of investment that has variable return. Thus, it is not possible to predict what the yield will be in a given period. Therefore, this type of application has a higher risk.
On the other hand, when the investment is successful, the returns can be very high, even in the short term.
When it comes to investment, it is assumed that money will increase. That is, instead of being stuck in a personal bank account, it is traded in the financial market.
However, as soon as your money becomes part of the financial market, it also becomes unstable. That way, you can make a profit, loss, or just stay with the same capital that was invested.
Fixed Income x Variable Income
While fixed income securities have predictable returns, variable income investments have incalculable returns. Thus, you profit a lot by increasing your capital in a matter of days. However, you can also make big losses, losing your entire investment in a matter of hours.
Therefore, to make profitable investments, it is necessary to define a clear objective. Afterwards, it is necessary to study and understand the profile of the investment you will make. Above all, it is necessary to be willing to assume the risks inherent in the operation.
Finally, after having all the ideas very clear, it is necessary to determine what type of investment will be made. After all, there are several types of investments in variable income.
Types of Investment in Variable Income
There are a few different ways to make investments in equity. Thus, the main ones are:
- Actions
- Stock ETF
- Equity Funds
- Future Market
- Exchange
- Gold
- Commodities
- Investment Clubs
- Derivatives
Actions
These are securities that give the investor a share in the company of a certain company. Thus, when you acquire a share on the Stock Exchange, you become a partner in the company in which you invested.
The shares are considered variable income investments because the shareholder profit depends directly on the company’s performance.
And the market is very unstable, with daily fluctuations. However, this type of investment must be made in the long term, because in the short term it presents a very high risk.
Stock ETF
This investment, known as the Exchange Traded Fund, is a type of fund traded with the Stock Exchange in the form of shares.
Equity Funds
In this type of investment, it is not necessary to select a specific company to make the investment.
Future Market
In the futures market, investors make purchases or sales of a certain asset with a certain value. However, they are paid off only some time later.
Exchange
Investing in foreign exchange is another way of making a variable income investment. But in this case, the variation in the value of a given currency is bet. However, the risks of this type of investment are quite high, as the values fluctuate constantly.
Investing in gold
It is also possible to make investments in gold. However, this case is slightly different from the others possible. This is because this type of investment is often used by investors to protect their money.
Thus, when there is an inflationary crisis, which causes currency devaluation, they invest in gold. As it is a scarce precious commodity, gold does not go through market pressures like money. In the case of money, the Central Bank has control.
Then, you can issue paper money to increase inflation. That doesn’t happen with gold. Therefore, it is considered very safe within investments of variable income.
Investing in commodities
It is also possible to invest in this type of product. This is because they are produced on a large scale and can be kept in stock for long periods of time without losses.
Thus, they can be traded on the market. Examples of commodities are soy, coffee and oil, for example.
Investment Clubs
In this type of investment, investments are made in groups. Then, from 3 to 50 individuals join and invest in Bonds and Securities. These can be shares or derivatives.
Derivatives
This type of application is dependent on other assets, physical (coffee, gold …) or financial (exchange, shares, interest …). Due to dependence on other factors, derivatives are considered to be much more complex investments than others.
In this modality, the investor makes a profit when there is a positive variation and a loss when there is a negative variation.
Derivatives can also be used as a strategy to protect capital. This is because an investor can invest in a derivative in the futures market in order to offset a cash loss.
Finally, this can also be applied to the dollar. Thus, the exchange rate variation in the future market derives from the currency value in the spot market.
How to start investing in equity
According to a survey released by B3 in January 2019, there are about 858 thousand people registered in the variable income market. In addition, 45 thousand new registrations were made in the first month of the year alone. Thus, there was an annual growth of 38%
However, the number of Brazilian investors is still very small when compared, for example, to the number of Americans who have shares on the Stock Exchange.
Less than 1% of the Brazilian population has any action. And the main reason why that number is so low is the fear of having losses.
However, you can be sure that it is possible to leave fear behind and succeed in this type of investment. And know that this can be as easy as applying to fixed income.
But to be successful you need to have a lot of knowledge. So, before you take your money and go out and apply it around, you need to study hard. Therefore, you must study the financial market and the ways of investing very well.
The good news is that nowadays there are a lot of free materials on the internet. The same goes for courses, which can provide you with all the knowledge you need without having to spend anything on it.
In addition, it is ideal that you do simulations before making the actual investments. For this there are several simulators online. With them, in addition to getting practice, you will also lose the fear of investing. But if you prefer, you can also choose a reliable broker.
It is important to emphasize that the choice of good companies to invest in is fundamental to obtain profits. Good investments tend to be less affected by market fluctuations. However, risks are always present when it comes to investments of this type.
However, fluctuations can also bring great opportunities for profits. This occurs, for example, in a “swing trade” or “day trade” operation.
In addition, a great tip for those just starting out is to make indirect investments through ETFs and Equity Funds. Later, when you gain more experience, you can take more chances by increasing your exposure to equity.
How to have a good return with variable income?
First, to make a good investment in variable income, you need to know the business very well. That’s because it can be quite complex, requiring a lot of skill for operations.
In addition, it is necessary to have enough up-to-date knowledge about the economy, in addition to a good understanding of the financial market. This way it is easier to predict the future of the company in which the investment was made, within the financial market.
Therefore, it is necessary to be always up to date with regard to all the factors that may influence the Stock Exchange. It is necessary to be constantly informed about the exchange rate and also about the world political and economic scenario.
It is recommended that before investing, you plan with a financial reserve. That way you prevent yourself in case you have any financial need.
It is concluded, therefore, that every investment in variable income requires a lot of patience, as it must be carried out in the long term. In this way, it usually brings a positive return.
However, the investor needs to program well before investing. Thus, a financial reserve is welcome so that your financial life is not affected until the investment brings a return.
Finally, this is a market for people willing to take chances. Money often happens to be lost, especially in the short term. However, when investments are made wisely, it is possible to obtain very high profits.
It is a market for those who are willing to even lose money in the short term, but who also know that they can achieve high gains in the same period.
