Do you think the stock market is an interesting investment option? Have you decided to invest in the Santiago Stock Exchange but do not know how to do it? In the next post we will know some tips before investing and the step by step process on how to invest in the Santiago Stock Exchange and the type of investor profile that you are based on your characteristics.
First steps to invest in the stock market of Santiago
The Santiago Stock Exchange (BCS) is a Stock Exchange whose fundamental role is to provide buyers and sellers of securities with a physical meeting place so that they can carry out their transactions, through the services provided by the Brokers of Bag. The Santiago Stock Exchange is a special limited company, whose capital is divided into 48 shares and its operation is controlled by the Superintendency of Securities and Insurance.
Tips before investing in the Santiago Stock Exchange
Below we indicate everything you need to know before investing in the Santiago Stock Exchange:
- In order to invest, you must be of legal age (+18 years).
- There is no minimum or maximum amount to invest in shares, only those fixed by the market itself, that is, by the law of supply and demand.
- To be able to invest you have to put yourself, in the first place, in contact with a broker, which will help you and guide you in the investment process. Do you want to know the best stock brokers in Chile?
- Any purchase or sale of shares or other securities is subject to expenses, such as the broker’s commission or VAT, among others.
Step by step to invest in the Santiago Stock Exchange
Below we show the different steps that must be followed to invest in the Santiago Stock Exchange:
- Contact a Stockbroker, as they are the only institutions authorized to intermediate assets. They are regulated and supervised by the Superintendency of Securities and Insurance (SVS).
- Open your account with a Stockbroker. For this you must:
- Be of age
- Have a residence in Chile
- Inform the amount to invest
The Broker will give you access to platforms that send orders to the central system of the Exchange.
- Ask the Broker for information, who will have investment recommendations and choose the instrument to invest. On the Santiago Stock Exchange you can find a wide variety of financial assets in which to invest:
- Chilean stocks
- Foreign shares
- Index funds (ETFs), such as the Chilean IPSA index
- Quotas of international index funds, such as the S & P500
- Fund installments of debt market indexes
- Once you have decided what you are going to invest, enter your order:
- You can choose if your order is entered by an executive or through a web service that facilitates the broker, according to your preference.
- You can also set a limit price or a market price of the selected instrument.
- The negotiation is made concrete if there is a coincidence between the purchase price and the sale price of the instrument. With that match, the execution or “stick” is generated. The Broker makes the payment of the transaction for you, so you only have to deliver the amount of the transaction to the buyer/seller broker.
- The Broker gives you the investment receipt and charges your commission. Regarding the commissions, there is no fixed, but each Broker manages its commission policy.
What investor profile to invest in the Santiago Stock Exchange am I?
Finally, it is important to know what type of investor we are based on our characteristics, since our investment strategy must depend on it. Below we show the 3 main types of investor profile:
- Conservative profile. The person that fits into this type of profile is characterized:
- By being less tolerant of risk and assessing safety.
- By choosing investment instruments that give the certainty that you will not lose part or all of the money you are going to invest. He does not care that the profits are lower. You can invest as a way of saving.
- By preferring to invest in debt market instruments, such as debt securities, time deposits or savings accounts, because you can know the profitability of these assets before acquiring them.
Within this profile there may be young people with their first income to people with families to maintain or debts to cover, retired or retired people who do not look for more worries.
- Moderated profile. The person that fits into this type of profile is characterized:
- For being cautious with your decisions, but be willing to tolerate a moderate risk to increase your profits.
- For trying to maintain a balance between profitability and security.
- To seek the creation of a portfolio or investment portfolio that combines investments in debt instruments and capitalization.
Generally, moderate investors are people with stable incomes, of different ages.
- Profile aggressive. The person that fits into this type of profile is characterized:
- To look for the highest possible yields, assuming the risk that is necessary.
- To take risks in the markets and opt for the instruments that promise the highest profits, regardless of whether you risk losing most of the investment.
- By preferring investment portfolios in which they combine capitalization funds, stocks and, to a lesser extent, short and long-term debt instruments.
Generally, these are young investors who have economic strength and moderate to high incomes, and single or no children between 30 and 40 years of age.
In conclusion, we have learned a lot in this article about how to invest in the Santiago Stock Exchange in a simple and detailed way. Do you have any doubt? Do you need more information? If so, do not hesitate to comment and we will try to answer you as soon as possible.