To answer what a financial investment is, let's begin with an example. Imagine buying something for 2,000 MXN and, over time, its value rises to 2,500 MXN. If you decide to sell then, you’ll make a profit of 500 MXN. That extra is what makes it an investment: you put your money to work to generate more.

That’s how any financial investment works.

But it’s not about random betting or just making more money. Investing also means taking on risks and having a clear goal. Plus, there are many types of financial investments, and you must choose the right one for you.

Don’t worry—this article covers everything you need: from what a financial investment is and its types, to how to prepare to start in the second half of 2025 with confidence.

Financial Investment for Beginners: What It Is and How to Start

What is a financial investment?

It’s when you use your money strategically to grow it over time. Instead of leaving it idle, you place it in opportunities that could yield future gains—while accepting certain risks.

These investments are very common and offer diverse options, as your money is placed in financial market instruments.

Types of investments [+ Examples]

What can I invest in to multiply my money?

There are several types of financial investments that generate returns from asset performance. Each with different levels of risk and return.

These are the most popular types of financial investments:

Fixed-income investments

These let you know from the start what you'll earn and when. Capital grows according to a pre-established interest rate, either through periodic payments or upon maturity.

7 examples:

• Government bonds

• Corporate bonds

• Bank promissory notes

• Treasury bills

• UDIS investments

• Certificates of deposit (CDs)

• Private or public fixed-interest debt

While returns are usually lower, they’re ideal for those who prefer limited risk.

Variable-income investments

Returns aren’t guaranteed and depend on market behavior. While riskier, they also offer the chance of higher gains.

• Stocks

• ETFs

• Index funds

• Company shares and cryptocurrencies

Returns are unknown until you sell the asset.

Investment funds

These are instruments that pool the capital of several investors to place it in a diversified portfolio. This may include stocks, bonds, real estate, among other assets.

Investment funds are usually managed by a team of financial professionals. But decisions depend on the investor's risk profile, i.e., whether they are conservative, moderate or determined.

Examples of mutual fund investments:

• BlackRock Global Allocation Fund (global mixed fund). 

• BBVAGUB (government debt, short term).

• GBMALFA (Mexican equities).

Performance and risk level may vary significantly depending on the type of fund chosen.

Real estate investment

It involves putting your money into physical property with the idea that it will increase in value over time. In other words, you can make a profit by renting or selling the property at a later date.

You can also do this through real estate investment trusts (REITs or FIBRAS). This option allows you to access the real estate market without having to invest so much money or manage a property.

However, the success of this type of investment depends on external factors. Including the location, the development of the area and the situation of the local real estate market.

Investment examples:

• Buying a house to rent it.

• Investing in an apartment for Airbnb.

• Acquiring a commercial property (such as a store or warehouse).

This type of investment is usually stable, but requires a considerable amount of capital.

Exchange-traded funds (ETFs)

ETFs are one of the most common forms of financial investment. Perhaps because it suits many profiles due to the fact that it combines diversification and accessibility.

They are investment funds that are bought and sold like shares on the stock exchange. In addition, you can find fixed income, equity, sector or international ETFs.

Examples of real investments:

• ETF VMEX from Vanguard.

• iShares MSCI Mexico ETF (EWW), from BlackRock.

• NAFTRAC (iShares S&P/BMV IPC TRAC)

They are an accessible and efficient option for those seeking to invest with low operating costs.

Savings vs. Investment: What’s the Difference?

The main difference between saving and investing lies in the purpose and the level of risk assumed.

To begin with, saving consists of keeping money safely, therefore, there is no risk, but it does not grow either. Although it will be useful for you to have it in the short term or in case of emergencies.

On the other hand, when you invest your money, it keeps moving in different market opportunities. Although there is a risk of loss, there is also the possibility that it will generate returns later on. 

Both are fundamental in a good financial planning and can complement each other according to your goals and financial profile.

Benefits of Investing

Why should I invest my money?

In addition to making your money grow, investing offers key advantages to strengthen your financial health:

• Protection. Although protection may vary depending on the type of investment and the entity, in most cases your money is well taken care of. That is, of course, if you choose reliable and regulated options.

• Varied options. Nowadays there are investments from low amounts and with different terms, you only have to look for one adapted to your profile and objectives

• Capital growth. Through yields, interest or capital gains, your money can increase its value in the medium or long term.

• Allows diversification. You can distribute your investment in different assets or sectors, which helps reduce risks and improve the stability of your results.

However, it is not enough to know what a financial investment is and its benefits before putting your capital in motion. It is also important to understand some key terminology.

Terms and definitions you should know

The following concepts will help you better understand how an investment works and what you can expect from it:

• Yield or interest rate. It is the percentage that you will receive as profit for investing. It is calculated on the amount invested and can be fixed or variable depending on the financial product.

• Profitability. Reflects the potential earnings, but varies according to the type of investment, the term and market behavior.

• Risk. All investments involve some level of risk. So you may not get the returns you expected or you may even lose some of your money.

• Term. This refers to the length of time your money will be invested. It can be short, medium or long term, and each one adapts to different financial objectives. This influences the amount to be earned and when you will be able to withdraw your money.

• Liquidity. This is the ease with which you can convert your investment into cash. Not all products allow you to dispose of your money immediately. The greater the liquidity, the faster you will be able to withdraw your money without restrictions.

• GAT. The Total Annual Return shows you how much you could actually earn in a year, including commissions and costs. It is useful for comparing different options.

These basic concepts will be useful when making decisions.

How to Start Investing Now

More important than how to invest in 2025 is preparing well: educating yourself, planning, and understanding your profile.

To start investing in 2025:

1. Be informed and understand the financial system

You must have an overview of the current economic context. Find out how the markets are behaving and the factors that can influence investments (such as interest rates, inflation or economic policies). You should also find out what changes could impact your money in 2025. 

Knowing the rules of the game will give you a solid foundation for moving forward.

2. Establish your financial objectives

Define what you want to invest for: a short-term goal, your retirement, a personal project? As well as how much you can invest without affecting your budget.

This involves organizing your income and expenses and deciding on a fixed or flexible amount to allocate to the plan.

3. Know your risk profile

Each type of investment works differently and fits different profiles:

• Conservative profile: those who opt for safety.

• Moderate profile: those who accept higher risk options.

• Aggressive profile: those who seek higher returns at the cost of higher volatility.

Identifying your profile will help you filter options that are compatible with your risk tolerance.

4. Seek professional advice

The market is full of options, terms and conditions. Therefore, it is wise to seek financial advisors who can explain how to invest your money and the associated risks to avoid common mistakes.

Checking with the Registry of Investment Advisors is an option if you want to get someone who operates within the legal framework.

5. Evaluate each instrument

Once you have a clear option, review its conditions. That is to say, the commissions, restrictions and terms of permanence in which your money is invested and its historical performance. This way, you will avoid surprises and you will be able to align the investment with your objectives.

6. Do not risk what you cannot lose

Financial experts agree that you should not commit money that can affect your essential expenses or for emergencies. Depositing it in volatile investments may generate profits, but it also limits access to cash when you need it most.

The ideal is to invest without putting your daily needs at risk.

7. Diversify and contribute consistently

A common practice in financial investments is to spread your capital across different assets or sectors. This can reduce the impact of potential losses more than if you allocate your money in one place.

It is also common to start with small amounts and make periodic contributions rather than making a single annual investment. Why? Because it can smooth the effects of market fluctuations.

Conclusion

Investing can help you reach mid- and long-term financial goals. But before starting, inform yourself, plan, and know your risk profile.

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