CTS 2023: what are the best options to save or invest this money?

The next lOn May 15, the deadline for employers to deposit the semi-annual payment of the CTSwhich can be withdrawn 100% until December 31 of this year.

If you are one of the people who have decided to have this money, Jorge Carrillo Acosta, professor and finance expert at Pacífico Business School, provides some recommendations to opt for the most convenient savings and investment alternative, depending on the level of risk you are willing to take. assume.

What are the best options to invest or save the CTS?

The expert recommends the following alternatives:

1. Savings in a financial institution
   There are 42 “traditional” financial entities, including banks (16), finance companies (8), municipal savings and credit banks (12) and rural savings and credit banks (6), which have an “insurance” called Fund Deposit Insurance, which covers savings up to S/125,714 (March-May 2023), including interest earned.
   If you choose this alternative (the least risky), it would be best to keep the money in the CTS account, or open a term deposit, which can pay interest rates of up to 9% per year.
2. Term deposit in cooperatives
   It has close to 300 savings and credit cooperatives (COOPAC) registered with the SBS, which offer higher interest rates than banks, finance companies or savings banks.
   However, it must be borne in mind that these institutions do not have a Deposit Insurance Fund of up to S/125,714, but rather have a “cooperative” fund that will cover a maximum of S/10,000 for large cooperatives and S/5,000 for small ones. small, but which will only be in force in mid-2024.
3. Investment in the stock market
   You have various alternatives within the stock market, such as mutual funds, voluntary contributions to the AFP without a pension or direct investment in the stock market.
   However, it must be considered that these options have variable returns, which means that you can earn a lot of money, but also lose part of your capital.
4. Investment in a property
   With the money from the CTS, you could complete the initial fee to acquire a property, through a mortgage loan.
   The advantage of this alternative is that it is a long-term good, in addition, it saves the cost of renting a home.
5. Other alternatives
   Other attractive options could be investing in insurance with a return, a private fund, a fintech, a factoring company, and even your own business.
   However, in all these cases, it is necessary to take into account the risk that is assumed, the knowledge that is required, and the time that is invested.
   Beware of scams.

Finally, care must be taken with “investing” in many “business” proposals that are offered on the Internet, since sometimes it is a scam or a financial pyramid. In these cases, it is always good to consult the SBS if the company has authorization to receive money from the public.