How to Invest in companies, Irving Escalante Castillo

(Photo: Lider Ejecutivo)

In the financial and investment issue something curious happens. In many cases, the advice is scarce and comes rather on random recommendations from people who claim to be doing very well with his investments. These recommendations are only based on current events without a proper analysis. The data is in most cases expressed as a percentage that represents the monthly return of investment.

This example is similar to a person recommending a medicine for a disease whose symptoms are similar to what another person is “suffering from”. All empiric.

I believe that this in fact the root of some frauds in which many people fall.

My recommendation is to go to the specialist and verify his credentials, of course.

Here in this column, we share information to contribute to the issue of financial education today I will explain the subject of investment companies and I will propose a very interesting alternative for those who wish to diversify their banking investment in other instruments that offer better returns.

What are investment companies?

The technical definition of these companies is simply that they have the purpose of investing in different financial instruments such as debt papers, shares, currencies, etc. The institutions that operate this type of company are banks, brokerage houses, and independent firms.

It can also mean a group of people pooling their money to invest in a number of competing instruments for greater profits than doing it individually.

Investment companies offer advantages such as competitive rates, diversification, and having a professional team that will inform you about the investment options that suit you according to your profile and will work to find new opportunities in the financial market.

Investment companies are a good way to increase your capital quickly and efficiently. However, it is necessary to investigate the seriousness of those who offer it and make sure that the instruments offered are reliable.

Direct investment in companies

On the other hand, there are alternative models to invest in companies. As is the case with direct investment in companies.

In this case, a person can choose investment alternatives and select from a portfolio of previously evaluated productive projects, capital investment options backed by company shares. In this way, the investor shares the risk directly with other partners of the ongoing company.


TIP-IRVING. To invest money in financial instruments it is always important to be accompanied by a financial expert, but you have to make sure that this is the case since there are also sellers and charlatans.


What is the difference between investment companies?

A fundamental difference is a knowledge that the investor has of the project where he is going to invest his money, that is, he is always advised regarding the company’s business model.

This concept definitely distances from the idea that the investor knows very little about how his money works. About direct investment, the investor can even be a client of the company in which he is investing.

If you want to know more about the Direct Investment model, I invite you to consult our website PROVIFIN Financial Linkage Program to schedule an appointment with an executive.

by Irving Alberto Escalante Castillo

The Yucatan Times
Newsroom



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