The never-ending cycle of 2020 has finally come to an end, and we are more than a month ahead into our fresh start in 2021.
If there is one thing that has not changed, it’s entrepreneurs with long-term goals who are looking for investment ideas to jump on and make money with very high interest rates. Obviously, no investor would want to be stuck with what could be a high risk investment option, without the higher return.
What Are My Investment Options?
There are tons of ideas that many want to invest in, of course. But which one should you pick and which one is best for you? In order to make your investment plan easier, we are going to go through 10 of the best investment ideas to scale with in 2021! Trust us, based on our research, these are the most suitable for investors who want to achieve top results. If you want to invest money and get high return rates, this list is for you! Here’s a couple of things you need to know before reading this blog:
- Some of these investment ideas are based on fixed-income, while others are linked to the market. Why is this important? Well, because they help create wealth, much like any type of investment! If you’re going for fixed income investment, then you are not looking at too much risk, whereas there is more risk involved if you go for market-linked investment! Continue reading to get a better idea for your financial goals and start investing money!
- If the idea of an long-term investment which carries less to no risk, but has high returns sounds too good to be true, then it is! If you invest money with the expectation of skyrocketing returns, you just have to accept the risks that come along with it. The other way around is also possible, of course. If you are expecting less returns, then congrats! You will face less risk with your investment.
- Each investment comes with a product or a service, right? So make sure that you also assess the risk of whatever it is you are investing in before you actually start investing. You never know! Maybe the risk of your profile does not match the risk of your product. Keep in mind that while some investments might be high risk, they will produce high returns in the long term. The best way is just to mix and match of the risk and investment product risk.
Fixed Deposits:
Fixed deposits are for investors who are not keen on facing high risk.
Every heard of them? You should! Like we said, these, along with bonds and government savings are easily the most risk free investment options you may want to take a look at and consider. Why? Well, you can reel in higher returns, have funds security, not experience any market fluctuation, and, the Crème de la crème, you’ll have guaranteed returns! Time to take advantage of them!
Corporate Bonds:
Corporate bonds are securities that corporations often issue and investors end up buying. A corporate bond will often have a high interest rate compared to government securities. It will also often be supported by the company’s ability to pay.
Mutual Funds:
A mutual fund by itself is a fund which consists of money that is collected from bonds, stocks, and similar assets. There are three different types of mutual funds that you can choose from:
1.Equity Funds:
These funds are often referred to as stock funds, and they themselves include growth funds, income funds, index funds, and sector funds. Investors who opt for these types of funds generally have to have a good understanding of how the stock market works. If you choose to invest in an equity fund, you would need to open what is called a demat account.
2.Fixed Income Funds:
These funds are also known as bond funds. They invest in debt that is either government or corporate. The reason they invest in this type of debt is to provide income thought dividend payments. In terms of risk, these funds can range from relatively low risk, to very high risk.
3.Money Market Funds
These funds are again for those who want a lower risk profile when investing. Actually, they have the lowest risk compared to other mutual funds. You will see them only in very select investments which are issued by the U.S. government, and are high quality and short-term at the same time. Usually, these funds have low returns and are susceptible to inflation which is on the rise.
Depending on the type of investment you are willing to make, any mutual fund can work. There are also debt mutual funds, which are usually sought after by investors who want their returns to be stable. They are usually focused on fixed-income. However, it is better if you leave the decision to professional advice. After all, money is money!
Savings Accounts
Of all options, this one should pretty much be a given, since a saving account literally has the name on it! An account which is meant to save money. Some people with more capital will opt for what we call a “high-end savings account” which are the perfect way to invest money. Online savings accounts work better, because online banks have higher interest rates than regular banks. This type of account is preferred by those who want to be able to withdraw cash per month, or in the future.
CDs
Nope, not the kind you play in the car! CD stands for certificates of deposit. These are insured by the federal government, and has fixed interest rates. Compared to savings bonds or saving accounts, the interest earned through a CD is much higher. Of all methods you can invest in, CDs are the safest ones. You can technically “lock” your money away in a CD (sounds funny, we know!), which makes it one of the best options for long-term investing. However, just like any investment method, these too come with risks. If the person investing decides to invest principal and interest again in another CD, they will earn less.
So far, what ever we have talked about has been part of what we call “financial” investments, meaning investments that have are directly connected to money. However, now we’ll talk one of the best investment options that exists and something that people tend to invest money in:
Long-Term Real Estate Investment
Real estate investment is generally considered to be non-financial. Meaning it has nothing to do with money, but a physical location. It could be a house, it could be a commercial location, any type of physical location.
If you look at the statistics, you will see that the average sales price of new homes sold in the U.S. has been rising steadily since the 60’s, with a slight drop during the mid 2010’s. Overall, it has been rising at any given period of time. Just by those numbers alone, one would think that you should start investing in real estate.
You can invest real estate through various strategies. We’ll introduce you to two of them.
- REIGs: Remember the mutual funds we were talking about? Well, REIGs, or Real Estate Investment Groups, are one way for people to invest, and they are perfect for those of you with plans of owning rental real estate without having to go through the trouble of actually running it. A single person could invest by buying more than one complex or apartment. However, the top guns will still manage the entire units. If the investor rents out one of his purchases, the investment company will take a portion of the rent each month.
- Rental Areas: If you’re the type of person that has experience in dealing with tenants, then you might want this option as something to invest in. But take this into consideration that if you purchase a place for renting it to others, you would need to have a significant amount of capital upfront and pay for the cost when the place is empty.
The Bottom Line
As you can see, there are tons of ways to invest and various things you can actually invest in. Whether long-term or short-term, any type of investing you do must be calculated before you get started. You need to assess the stock market situation, and make a decision based on how the stock market fluctuates.
Keep in mind that while all of the investment options we talked about in this article have various return rates and risk tolerance, you will need to align them with your investment goals, the needs of your company, and your ability to wrestle with risk. Whether it’s a savings account, mutual fund, checking account, asset classes, brokerage account, or any other investment method, we will help you weight out the options, figure out which one suits your needs better. We will make sure your investments are well-protected. Once we figure out all of that, there is really only one thing left to do:
Start investing!
