Investing in water pays off in the long run

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Invest in water? In times of uncertainty in equities, such as today, many investors try to direct their savings to the strangest financial assets. Trying to take advantage of the possibilities that financial markets always create. You have a wide offer to select from. Of every nature and condition. To the point that it is a practically unfathomable decision for the most experienced investor. From different investment approaches.

Sea cual sea el caso, si hay un mercado donde las compañías de agua están bien representadas, es Estados Unidos. Con una de las ofertas más completas del panorama internacional. Aún cuando para comprar sus acciones requerirán comisiones más expansivas que las de aquí. Hasta el punto de que puede costarle casi el doble que las operaciones nacionales. Es un aspecto que no puedes olvidar para planificar tus inversiones a partir de ahora.

Reasons for your investment

There is no doubt that the water it is a rare commodity on the planet, more than other types of energies. On the other hand, the increase in world population will reach almost 10 billion inhabitants in 2050. A direct consequence of this scenario is that it will cause an exponential increase in water. One of the great beneficiaries of this situation will undoubtedly be the companies linked to the commercialization of water. Of course, if they are listed on the stock market, you will take advantage of their movements.

At the same time, another of the reasons that invite you to invest has its origin in the very characteristics of these securities. Because in effect, they trade with great stability and rarely show excesses, both in one direction or another. On the other hand, volatility is not present in its lines of action. To the point of becoming safe havens in the most unfavorable scenarios for equity markets. It will not be very strange that you can achieve profitable savings when stocks are falling or in a downtrend.

The benchmark for this strategic sector is S&P Global Water. It is incorporated by companies that deal with water supply, technological efficiency, and environmental services. With the advantage that today it is in a situation of free rise after having revalued in more than 200% during the last eight years. Exactly taking advantage of the final part of the major economic crisis that has occurred in almost the entire world.

Represented by funds

Undoubtedly, this is one of the most recommended products for taking positions in the water. You have many proposals that managers have prepared in recent years. One of these initiatives comes from the JSS Sustainable Water Fund, which maintains a annual yield close to 10%. It is not the only one in which you can position yourself at the moment since the offer of these products has caused Pictet Water, one of the oldest that exists at this time. With a profitability of savings during the last three years very similar to the previous result.

Within this offer, Parvest Aqua Privilege-Capitalization also stands out. It should not be surprising that it is one of the most profitable funds in this specialty. Being one of those who have a greater number of members as a result of the evolution of the investment portfolio. To be one of the preferred destinations for the most experienced investors who want the best product at all times. With rather conservative approaches that can serve as a refuge from the worst economic scenarios.

However, these mutual funds require special attention on your part. One of the reasons comes from the excesses of the past. Even though, for many circumstances, they move under maintenance of the uptrend. It may be that your best situation has passed and it is a bit late to open positions in any of these financial instruments. Even when you have a more than powerful offer and you can formalize from your frequent bank and under its usual commissions.

What can you do with the water?

Whatever the case, this energetic liquid is characterized by bring some peace of mind during the most volatile moments of equities. Because in effect, you will not have many fluctuations in the quotation of their prices, since they move under very narrow margins and in all cases below those presented by other sectors. But in any case, importing the following lines of action will always do. These are some of the most relevant.

1. They create a much more important offer than you can imagine from the beginning. For what you will have several options to make your economic contributions profitable from multiple investment approaches and strategies.
2. Water is not a financial asset of cyclical character and in this way it can be used for all scenarios of the international economy. Unlike other proposals more adapted to economic cycles. You will always have them at hand at any time.
3. It is an investment that can be more profitable in the medium and long term, which are the most recommended periods if you want to take positions in the water. Both in the direct purchase and sale of shares and in investment funds based on this energy.
4. If what you want is to carry out speculative operations, it will be better to look at other financial assets with longer duration in the short term. Not in vain, the Return that you will generate on your savings will be clearly insufficient for your interests as a small and medium investor.
5. Another of the most effective strategies you have is supplement through water its main operations in the financial markets. It will be a way to more effectively protect your equity and bond positions.
6. You have greater purchase options in international markets than in national ones. Through an offer that is diversified in the form of different strategies that focus on this much-needed energy for the population.
7. If you have to select a financial instrument that mostly appreciates this investment, those are none other than the investment funds. Not surprisingly, they are collected by the most important managers of these investment models.
8. They focus on operations that are not very valid to achieve large capital gains, but on the contrary they will generate more modest returns than in other financial assets. Intended for an investor profile with conservative tendencies and who does not want to take excessive risks.
9. The forecasts they point out that their demand will increase in the coming years. It may be a piece of information that this year invites you to have greater possibilities to formalize operations on the stock market or even through other financial instruments.
10. The traded funds they also collect these operations. Through a hybrid model that combines the purchase and sale of shares on the stock market with investment funds. So that you can take advantage of the two products from now on.