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How to invest? Tips to build your first portfolio

·7-min read
<span class="copyright">Depositphotos.com</span>
Depositphotos.com

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

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