When money is left at the end of the month, after paying bills and debts, the ideal is to let it be applied to some financial product with good profitability. But many people think they need to reserve at any time, so they prefer to leave the money in the savings account or even keep it at home. This is definitely not the best thing to do.
Invest in products with high profitability
It is possible to invest in products with high profitability, which “convert to cash” again quickly. The secret is liquidity, a simple but fundamental concept in finance.
The liquidity of an asset is high if that investment can be easily converted into cash when you request it. An example: If you have an apartment, it will take a long time to sell it and “turn it” into cash. That is, it has low liquidity. Already savings, other fixed income products and many mutual funds have high liquidity, often daily, since it is possible that the amount invested turn money into your checking account very quickly.
Sometimes a product has high liquidity, but low profitability
Sometimes a product has high liquidity, but low profitability, and vice versa. The ideal is to match these variables according to your objective and investment profile. Liquidity is important in times of turbulence or uncertainty in the scenario. When there is a strong chance of losing our job, for example, it is vital to have the reserves at hand.
Currently, the country undergoes changes in the political-economic framework and some investors have been looking for products with greater liquidity. For Órama’s investment adviser, Sandra Blanco, “highly liquid investments meet the short-term needs of investors and also low risk preference in any scenario.”
Investment funds and products to meet your investor profile
At Órama, there is an extensive portfolio of highly liquid investment funds and products to meet your investor profile and goals. Among these, Sandra recommends highly liquid funds, such as the JP Morgan Income Class, Órama DI Tesouro Master and Bozano Top. All of these have a redemption period of 1 to 15 days, and are available on the Órama platform.