Inflation that does not mention to background is pushing more and more investors to ask what the best choice is among the government bonds and the actions To protect their capital and at the same time have an adequate annuity in a period of economic uncertainty such as today.
For which of the two opting depends on various key factors such as the time horizon, risk tolerance and current economic context. Here are more details about it.
Choose government bonds or actions?
State securities are an investment product considered safe, especially in periods of economic uncertainty, because they offer stable returns even if often modest.
The actions, Instead, they are portions of a company and those who buy them becomes a partner even if of a small part. They offer higher growth opportunities than government bonds but the risks of faces are greater. The price, in fact, is different every day. Today, for example, it could be 12 euros while tomorrow the same action could be worth 14 euros or 9 euros.
Why choose government bonds
THE government bonds Like BPTs (Poliennial Treasury vouchers) and bots (ordinary treasure vouchers) are products issued by the Italian state to finance public debt. Those who buy them, lend money to the state and receive in exchange for the interests that are called coupons as well as the capital invested on the deadline.
THE advantages to invest in these products are:
- the low risk as they are guaranteed by the state;
- the possibility of having a certain income;
- protection from inflation if you choose certain types of titles such as BTP Italia;
- Facilitated taxation at 12.5% on interest which is lower than other investments.
The main ones disadvantages they are instead:
- the lowest gain compared to other products such as actions;
- The possibility of losing a part of the capital if the titles are sold before the deadline.
Why choose actions
As explained, who acquires some actions He becomes a partner and participates in profits, if there are, and the risks of a company.
Among the advantages main of this investment are:
- The possibility of obtaining high earnings if the company grows as the value of its actions could rise over time;
- dividends as some companies distribute part of the profits annually;
- The possibility of buying and selling when you want as long as in market hours.
Here are the main ones Disadvantages:
- A higher risk as the value can also oscillate a lot on a single day;
- A greater knowledge of financial products or the help of a consultant to understand exactly what you are investing.
Which of the two options to choose?
THE government bonds they are a ideal product For those who have little experience in investments and want to protect their money without running too many risks. Also for:
- Pensioners because they offer safe returns;
- Those who have medium-long term objectives as thanks to them you know exactly how much you will receive and when;
- Those who want a supplementary fixed income thanks to the half -yearly coupons.
They could instead opt for actions:
- those who have the opportunity to withstand market oscillations more;
- those who do not need money immediately and can invest it for ten years and more;
- those who already have a part of assets invested in safe tools such as properties or government bonds;
- those who are willing to accept the risks.
The right choice, however, could be to diversify the wallet by choosing both products. A person halfway through his career, for example, could decide to invest 40% of his assets in shares and 60% in government bonds. In this way he will be able to protect himself in difficult moments and not give up higher returns.
