How to invest? Tips to build your first portfolio
You have already put your finances in order, you have an emergency fund and a capital savings. Now you want to invest to increase your wealth, but how do you build your first investment portfolio?
During their participation in the Money Fest 2021 personal finance festival, experts Leví Alvarado from Suicidando al Godínez and Liliana Olivares from the YouTube finance channel Adulting gave some tips to choose your first assets.
What is my investor profile?
Before injecting your money, you have to identify what your investor profile is.
"It has to do less with finances and more with self-knowledge," said Olivares. "It is the personality you have regarding risk."
According to the expert, it is about answering "What do I want to achieve with my money?"
What is the use of knowing my investor profile?
Help to:
Create custom strategies
Make informed decisions
Choosing the best investments for you
Determine the risk you are going to take
Efficiently achieve your goals
"In the investor profile, the idea is that you have a little bit of all the tools there are, but knowing how to choose them according to our personality," Olivares explained.
How to determine my investor profile?
You have to answer honestly:
How old are you
Stability you have in career or work
Marital status
Habits and financial stability
Financial knowledge and experience you have
Goals - term - amount (You must start your first investment with the first goal)
"If you are someone who wants to invest, but has a barbaric debt or you are one of those who needs money taken away because you spend it, this will help you choose the platform that will serve you the most," said the expert.
Remember that the first thing you must invest to get rich is time (watching Billions on Netflix does not count).
In case you are interested: How to invest in Cetes
Types of investor profiles
It is the level of aversion to risk. Be careful, it can be by person or by goal you have.
Conservative
"He's the one who says 'I don't want to lose him,'" says Liliana. "This profile only wants to make its money grow a little because it does not have extraordinary returns."
You don't like risk
Low risk, low returns
Ideal for short term goals
You prefer safe money with little profit
Objective: Keep your money without losing value
Ideal investment instruments: Debt and fixed income instruments.
Moderate
"It is one of the most common because it seeks to have returns, but nothing that will leave it bankrupt," said the expert. "This profile goes very well with millennials so they can experiment."
Seek returns without much risk
Ideal for medium-term goals (three to five years)
Balance between risk and returns
Objective: Increase your savings over time
Ideal investment instruments: Debt, fixed and variable income instruments
Aggressive
"It is for a person who handles danger well and who takes bad news well and knows how to celebrate good news."
Risk is your thing
Ideal for long-term goals
You do not need liquidity of money
Objective: Increase equity regardless of risk
Ideal investment instruments: Debt instruments, variable and mixed portfolios
Before investing, do you know with whom it protects you?
In his participation Levi Alvarado spoke about the financial companies that are authorized to handle money. "Regulation is knowing with whom to accuse them," said the expert.
To begin to understand, the Mexican financial system is the entire relationship of institutions in which money is handled. "If you are going to invest, go with instruments from companies that are not going to disappear," recommends Alvarado.
Finance and Public Credit (SHCP): The head that authorizes how the financial situation in the country will work.
National Banking and Securities Commission (CNBV): It is the one that authorizes the operation of banks, brokerage houses, in Mexico it is forbidden to gamble money without being authorized by the commission
National Insurance and Bond Commission (CNSF): In Mexico you can only purchase insurance through an agent that is authorized by the CNSF.
National Commission of the Retirement Savings System (Consar): The one that regulates the Afores and everything that has to do with retirement money.
National Commission for the Protection and Defense of Users of Financial Services (Condusef): It is the PROFECO of all financial services, banking, stock market,
Institute for the Protection of Savings in a Bank (IPAB): If you save in a bank and it disappears, the IPAB protects you for up to 400 thousand UDIs. That is why it is very important to diversify.
System of the Registry of Financial Service Providers (SIPRES): Here you can see which financial companies that "have already done their job" and are already regulated.
It is not about being against unregulated companies, but it implies a very strong risk and being aware that no one is going to protect you, Alvarado stressed.
Products to invest
“There is no perfect financial instrument. Each one gives you different things and they apply at different times, ”said Levi Alvarado.
CETES
Very low risk, but low return
Government backed
You can invest from 100 pesos
Ideal for short term goals
Debt instrument
Terms from 28 to 364 days
You can arrange your money in advance
They can be purchased online
No commissions or penalties
Bonuses
They are bonds issued by the government so that you can lend them money.
Very low risk, but low return
Government backed
You can invest from 100 pesos
Ideal for short term goals
Debt instrument
They pay interest every 6 months at a fixed rate on the day you purchased the bond.
You can arrange your money in advance
They can be purchased online
No commissions or penalties
BANK PAYMENTS
Savings instrument because it is very flat
Low risk
Term and fixed rate
You can find them in any bank, but the higher the bank, the lower the interest rate it will offer you.
You should try to at least give you a little more than inflation.
In case you are interested: 10 tips to be a millionaire before 30
SOFIPOS
Popular Financial Societies (SOFIPOS), which are basically institutions more similar to banks and are a debt instrument (they will owe you the money you lend them).
Debt instrument
Protected by a PROSOFIPO fund (up to approximately 160 KG)
Exempt from paying taxes up to 158 K or 5 UMAS.
Moderate risk
Examples: Finsos, Kubo Financiero, SuperTasas.com
ADVISED INVESTMENTS
No matter how much you educate yourself, there will come a point where you will need help to invest and you must turn to a financial expert.
Accountant
Tax strategy (be careful, not evasion)
Order to carry your numbers
Avoid later problems
Wealth Manager
Best way to manage your money
Specialized Team
Strategy according to your investor profile
Companies like GBM, Actinver, Vector.
Financial advisors
Help you define your investor profile
Give you investment options and guidance
Insurance agent
In Mexico you can only purchase insurance through an agent
It will help you align your financial strategy
Long-term projects
INVESTMENT FUNDS
They can be as sophisticated and as basic as you want.
“Bag” of many people managed by an expert
Easy way to diversify and access more sophisticated instruments with less money
There are various amounts, terms and risks
They can invest in stocks, fibers, debt, other funds, etc.
They charge commission
Choose the best one according to your goals, available amount and risk you want
INSURANCE
Temporary
Last 12 months
Very cheap
Not recoverable
Dotals
Determined time
The money is delivered at the end of the term
Guaranteed performance
Universal
Preset minimum time
Variable returns
Flexible
Which one is better than another? None. It all depends on your financial goal and the strategy you have, ”Levi said.
AFORES
They are the administrators of Retirement Funds, money that you will be able to withdraw when you are 65 years old.
Companies that handle the money we save for retirement.
Regulated by CONSAR
The money is invested in different funds of different types: debt, fixed and variable income funds, fibers, etc.
You must choose the one that gives you the highest net return.
PERSONAL RETIREMENT PLAN
Savings for retirement that you supplement on your own with a bank or financial institution with voluntary contributions.
Gives you life insurance, disability insurance
Tax-deductible
Type: GNP, Seguros Monterrey, Skandia