The following is a guest post by hsbc.ae.
Investing is a tricky and intriguing game – finding the right stocks and commodities is a sure way to boost your wealth and help you increase your standard of living. Of course before you even get to this point you need to raise money to power your investments: things like personal loans will allow you to get these funds so you can hop on to the market. Here are three ways to raise capital, though you should consider your options carefully as all have their drawbacks.
Loans are the fastest way to raise funds for your investments – by heading to the local branch of your bank you can take out a certain amount of money which you can then fold straight into your investments. The details of the loan will rely upon numerous factors especially your credit rating, yet one way or another you will have to pay significant interest. You need to ensure that you make greater returns on your investments than these repayments, otherwise you will end up losing a lot of money.
Liquidating your assets is a more conservative way to raise funds –the benefit is that you will only be spending money that you have, and you will be able to avoid debt entirely. There are few downsides to this: first of all you will have to move funds from one investment to another, potentially costing yourself an opportunity. Secondly, it might take some time to free up this money and it could take months before you have the liquidity you desire.
Finally, you can move money from more conservative investment options into stocks. If you have a savings account that is ticking along at a decent interest rate, you can bust it open and put it into higher reward options. These moves couple payoffs with high risk so be sure to consider this option carefully before gambling like this.
For most people it is possible to move money around to make investments in the market. These three methods should help you get funds together to take advantage of any opportunities that arise – be cautious though, all these options carry inherent risks that you don’t want to undertake lightly.
This was a guest post by hsbc.ae.
[Mich]What is your preferred way of raising capital quickly if an investment opportunity suddenly appears?