In my current country, when the Central Bank (BC Banco Central) raises the interest rate, federal treasury becomes very profitable. In addition, Agribusiness LC becomes very interesting too (remembering this latter investment is completely tax free). These are kept among the safest investments in my country. Federal treasury is secured even in the case of a failure or bankruptcy of the bank because the sender is the federal government. And if we choose a federal bank or a very solid, big and global bank, Agribusiness LC is very safe too. In fact, these two are my favorite investments. What about your countries?
What's the most profitable and safest investment in your country?
- Thread starter Pousinha
- Start date
I think all investments involve some kind of risk. Putting money in fixed deposit account is the safest. Also, the risk of buying local government bonds is also low here.
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- #4
Yes, my Agribusiness LC is practically lending money to the bank for agricultural purposes. The bank, in its turn, lend that collected money to farmers to let them improve their farms. And the bank pays back the capital and interests to the investors. When the interest rate is high, even the big banks and federal banks pay good interest in the case of Agribusiness LC. It also exists Real Estate LC, but its interests are not high as Agribusiness LC 's. And in any way, my preference is to help local farmers.
Yes, in the finance world, the zero risk simply doesn't exist. But it exist low and very low risk when we choose conservative investments.
Agriculture is one of the best even though attention has been taken from it by our government and even the people with the evolving and discovery of crude oil and other forms of businesses but agriculture is key to man's survival.
I don't know what LC stands for, but after reading your description which means that there is a loan, it means it's not much different from government bonds, the safest type of investment is risky but that doesn't mean it's without risk.
Whatever the reason, shares are a group of high-risk investment instruments, different from government bonds and the like, which will be guaranteed by a bank or government. There is no guarantee that investing in stocks will always be safe and profitable.
Invariably, any investment opportunity that is the most profitable is associated with a considerably high risk. It may thereby be ironical to describe a highly profitable opportunity as the safest.
I think anyone trying to make this improbable claim is a possible scammer.
I think anyone trying to make this improbable claim is a possible scammer.
Yea i believe agriculture is also a pretty safe investment, though there is no investment out there without it share of risk but with agriculture, it is something we can't really do without.
Agriculture is always and has always been there for man to make use of and there are young people and also old ones who are invested in agriculture that are making good enough earnings from it more than we even think of.
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- #19
LC stands for Credit Letter (Letra de Crédito, literally translated in Portuguese). Farmers and builders take a loan from the bank and they must repay the capital together with interests. Investors are the lenders. If the debtors can't pay off the loans, a federal or hybrid or multinational bank in my country is very able to repay us investors. There is also a warranty fund, covering losses until 250 thousand of reais per investor per bank. That's why LC count among the safest investments in my country.