What types of investments are there?

In times of extremely low-interest rates, it has become more difficult to invest your money profitably. Anyone who wants to achieve an attractive return and build up assets over the long term needs a solid strategy. In this guide, we explain how you can develop and implement an investment strategy in simple steps that best suits your personal risk tolerance.

In order to find the right investment, investors must first determine

  • how much wealth they have at their disposal,
  • how long you can possibly do without it,
  • which savings goal is behind the investment,
  • how often savers want to take care of their investment and
  • how much risk you want to take in investing.

As a rule, the following applies:

No financial investment offers investors both a high level of security and a maximum return as well as constant access to the assets invested. If, for example, consumers value high-interest rates and the rapid availability of capital, they must at the same time expect a high risk of losing part or all of their money. Profitable and safe investments, on the other hand, are designed in such a way that savers cannot fall back on their savings for a long period of time. You can also check investment strategies by following the link.

The investor types can be roughly divided into four models:

Safety oriented

People in this type of savings usually invest their money for a short period of six months to two years. The focus is on preserving capital with the lowest risk and low return.


The investment horizon extends over three to five years. Investors tolerate short-term, moderate price losses and rely on an average return with slow asset accumulation.


Investors invest their capital for a period of ten years. The risk and also the return may be above average, higher price fluctuations are tolerated.


Here the money is invested for more than ten years, the focus is entirely on potential returns. In return, incalculable risks of loss are accepted.

How should I divide my investments?

Depending on the type of investor, there are different strategies for investing their money. Security-oriented types, for example, want more than 75 percent to rely on safe investments. With the remaining 25 percent, they are willing to take a little risk with funds and the like.

For the other types, the following applies the more risk you want, the greater the proportion of capital that flows into equity funds. In the risk-oriented group, this can amount to 40 percent and more. For a bit of security, ten percent should flow into safe investments and into pension funds.

Is it safe to complete the investment online?

Many things can now be done online, including investing money. In order to distinguish serious from the dubious provider. If, for example, unusually high interest rates are promised, caution is advised. The same applies if it is not clear how and when investors will get their capital back.

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