How much can your investments sell?

Investment means buying more, the investor assumes that the price of the tax should increase or that it should receive a return. This is usually the case, but in some cases the investor may have mistaken, the price will fall and he will sell at a loss.

We bought a bond for 1,000 K, which can be 4% every year and has a maturity of 5 years. We want to sell this bond in half a year, let’s look for a buyer. Suppose we could sell it for 1,000 K plus the increase in revenue in ½ year (2% = 20 K). It is clear to us that we cannot find buyers. He is not satisfied with the input of 4% ron in five years.

Buy a bond from NS, but a price for it. Nabz 970 K + 20 K nabhl vnos. When we come to his terms, we achieve loss. We bought it for 1,000 K, after a full year we get only 990 K. The buyer will receive the expected return on the transaction. The bond will charge him 40 K each year of his invested 990 K, in addition he will receive 1,000 K in 4.5 years.

The only thing that led to the delay was that we could not find a buyer for the condition we needed. The buyer did not receive the input we offered, so he demanded a price. The same case can occur with an event or real estate. In the case of a share, the company will report lower profits and there will be less interest among buyers and its price will fall. The risk of decline affects almost all investments. Some stocks may fall a lot, while others usually have lower quality bonds.

Stock investments are the most risky. If we invest in only one single share, we must cover the possibility of total bankruptcy. Even if it doesn’t happen the worst, individual company shares can fluctuate sharply. We would find countless cases where good, large and stable companies recorded declines in their exchange rates by two percent. At one point, their prices were overvalued and later fell. As a rental and uninvolved investor, we do not have to know that it was an overvalued price.

We buy and delay in a few weeks, months or years. When we invest through the fund, there is no risk of overvaluing one company. The declines in the fund are not as great as the declines of individual companies. The fund consists of many companies. A decrease in one of them does not necessarily mean a decrease in the entire fund. Furnaces are just that others will do better.

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What share funds can you invest in?

Even investing in a fund will lose half its value

Whoever invests in the action must be prepared for the fact that their investment may fall by a few tens of percent. The example, which is shown in the graph, is somewhat extreme and does not occur very often, however, the investor has to deal with it and be mentally prepared for it. It’s the reality. Toto um stock
fond.

Investing in bonds is safe, but even here the pensions are not completely safe and we must not think that the value of invested pensions will never fall. Here, too, we have to deal with a short-term decline in du percentage units. In other words: It will happen that in a bond fund we will have 3% less in a year, not how much we have invested.

Graf:
An example of a decline in investment stocks. Specifically, it is the Globaltrend fund, which invests in global stocks.

(Source: www.iscs.cz)

Even the money market fund does not promise 100% that you really do not delay even a crown. Here, too, it can happen that your investment will decrease from day to day. The decline is fully negligible. Of the 100,000 K invested, it is hundreds of crowns. In addition, the value returns at least to the original level within a few weeks. The extension of invested pensions is e.g. in term deposits the phenomenon is unknown. Once we get into the field of investment, we have to deal with the fact that we accept certain risks. Sometimes he had, other times vt. Bad on the nature of the investment.


ryvek from the book: Investovn pro zatenky

Length 1: Basic question: for I want to invest
2. dl: How do you want input?
3. dl: Do you want maximum profit?


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ryvek is from the book
“Investovn pro ztenky”
vydan nakladatelstvm
City Publishing,
For more information, visit
www.grada.cz

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