You no longer have to be rich to value your assets
September 12, 2019
We all know that ordinary people do not have access to the same money management options as rich people. When you come to a bank or a brokerage house with a million euros, you will receive different care than when you appear there with 5 thousand euros.
Why are retail investors discriminated against?
It is true that 5 thousand. euros you can hardly invest. There are some natural constraints that aim to leave more sophisticated financial instruments in the hands of professionals or experienced investors. Likewise, it is not. to invest small volumes in specific projects.
The second reason is partly objective discrimination. In principle, private banking has just as much work with a client that will carry a million euros and a 10,000 client. But the institution’s revenues are disproportionately different.
That’s why wealthier people get different service, other fees, other services and products. Small investors have access to these tools limited by high minimum investment. Finally, it works in every business and service industry.
How do solvent people in the world handle property?
Rich people confirm that investing is the way to a better life. If one brings discipline and efficiency to his finances, there is a high probability that his property will grow. This will increase its security, financial security, and source of passive income. Everybody is easier to breathe with the property.
The following two graphs show the asset structure and contribution of each asset class to wealthy wealth growth in 2017 according to the regular World Wealth Report by Capgemini. Stocks dominate portfolios – accounting for almost one-third of assets.
And wealthy individuals attribute the greatest credit to the growth of their assets – 9 out of 10 “rich” see them as an important factor in raising equity and more than half of the most important. An interesting fact is that they consider business and employment income to be the smallest contribution to growth.
In Best Finance, we believe that investment should be open to all people on fair terms, such as public services. Finally, each of us treats money every day.
One of the revolutionary ideas that Best Finance brings is making access to effective investment for the masses. Every investor receives the same quality service, regardless of the size of his property, the size of the investment, the social status, or other characteristics.
You will find it difficult to find a more convenient alternative to your savings on the market
With Best Finance, you have been investing in more than 10 ths. securities worldwide. And all this with just one fair fee of 1% per year + VAT. For regular investments (savings), we charge 1% of the payment received for its processing.
Save your savings as rich.
Intelligent investment offers a very simple and efficient way to capitalize on resources. Copying world indices is the cornerstone of investment.
In addition, intelligent portfolios bring some of the highest returns to the tax-free market in the long term.
From the very beginning of Best Finance, we wanted to create a universal product for all. We do not see why good things should only be accessible to the rich.
To achieve this goal, we had to come up with a simple tool. Another condition was a technologically advanced solution. Only technologies can ensure reliability, objectivity and reduce costs to make the best for you.
What possibilities should Slovaks have so far appreciated their savings?
As a rule, they were limited to mutual funds, private bond issues, managed securities dealers’ portfolios, or individually open brokerage accounts, where you have to choose the tools yourself.
These forms of resource appreciation have numerous drawbacks compared to the passive investment in ETF index funds, such as Best Finance.
Mutual funds have disproportionately high fees and poor results. Over the past 10 years, Best Finance’s equity portfolio yield has surpassed the average yields of the most popular equity funds in Slovakia by 4% a year after tax deductions.
The fees for managing and managing these funds range from 1.5% to 3% pa In addition, they charge an entry fee of 4-5% of the investment amount. Their costs are at least twice that of Best Finance.
Private Slovak bonds can be part of portfolios but we do not consider them to be a suitable tool for retail investors. Their yield often does not match the risk. Private bond issues cannot be considered safer securities as shares of large companies. And their yield is usually lower than stock markets. They are illiquid and carry a significant credit risk. In addition, revenues from them are taxed.
Among the securities dealers in Slovakia, just a few offer relevant investment products. We do not find portfolios among them that would beat the market in the long run. Their risk is disproportionate. The fee structure takes into account primarily the trader’s interests and then the client. The minimum required investment is often an insurmountable barrier for most Slovaks.