As indicated by the run of the mill, if you need more money you need to work more – investment is the technique to make your money work for you. Once the purpose to invest has been identified, you should use different investment strategies whether you want to invest short term or the long term. Following are the best 10 ways of investing your money:
1. Open a Savings Account
The best way to invest your money is to put it in an interest savings account. This will assure safety of the money while earning interest on your funds. The best high-yield accounts only pay slightly more than 1 percent interest, but for this cash, stability is more important than gains.
2. Buy a Property
Every investor must have some part of their portfolio invested in real estate. You can invest in property to either repair or offer or to lease. Either way can lead to financial profit if done properly. Almost every individual and corporate investor invest in residential and office buildings respectively. Apart from these, others include:
- Agricultural Land
- Semi-Urban Land
- Commercial Property
- Farm House and so forth
3. Debentures or Bonds
These are long term investment options with a settled stream of money relying upon the rate of premium they are purchased at. These are relatively less risky, as the amount of risk involved is dependent upon who the issuer is i.e, if the issuer is government, the risk is assumed to be zero. Following alternatives are available under debentures or bonds:
- Government securities
- Savings bonds
- Debentures of private sector companies
- Preference shares
4. Life Insurance and General Insurance
They are one of the important parts of good investment portfolios. This investment helps you recover the losses you face in life. Insurance can help minimize potential loss and save you money. Life insurance is an investment for the security of life – which is highly suitable for individuals. Other kinds of general insurances useful for corporates would be property insurance, rental insurance, vehicle insurance etc.
5. Short-term bond funds
Short-term bond funds are one way to increase returns with relatively little risk. The gains on these funds are minimal compared to other investments. Ten-year annualized returns for even the best bond funds hover around 2 to 4 percent. One must acknowledge the way that the cash wouldn’t grow a great deal, however it will positively develop gradually and relentlessly.
6. Fixed income funds.
Similarly, fixed income funds offer a relatively stable way to get a return greater than that offered through savings or money market accounts. Many of these funds include bonds, but they may also include other securities.
You can also invest your money by investing in it a beginning business in return for month to month or yearly benefit. You can be a full time accomplice in a business or only a financier.
8. Stock Exchange
Trading on the stock exchange. This can get you a small amount of ownership and you can always sell the shares when they rise.
9. Buy Metal
Another way of investing money is to purchase raw material. Gold, aside from being an adornment is additionally an approach to contribute your cash as its cost is evolving always. By putting cash in metals like iron, copper silver here you can make sure that your cash is sheltered and by expanding costs of metal you are at a better position.
10. Take professional Services
When you are confused for investing money you can simply seek experts for help. A person with knowledge in the market can give you the best guidance about which businesses will procure you most extreme benefit.
For cash that isn’t required for no less than three years, look at putting at least a portion in stock market equities. That means someone investing with a five-year time horizon can afford to risk a down market since their investments will likely rebound before the cash is needed. However, to be safe, people should begin moving money to bond and fixed income funds as it gets closer to when it will be used for its intended purpose.