A Quick Guide To 10 Investment Options
Finding the right investments can at times seem overwhelming. There are a lot of different options and it is not always easy to know the right option for you. With this in mind, below is a quick guide to 10 investment options to help you decide the right one for you.
1. Rental properties – Potentially this could be a great investment. Increasingly more people are renting properties, especially younger people who can have trouble getting on the property ladder. However, it does take a firm hand at times (can you kick out people who don’t pay?).
2. Bonds – In simple terms bonds are lending money to a government or company who then pay interest on that money. The reason this is a good investment is that if you get it from stable companies and governments they are relatively low risk.
3. Stocks – When you buy a stock you buy a part of a company. One of the problems with this is that inevitably the value can go up as well as down. There is also the fact that a lot of stocks don’t pay dividends, so it is worth including them alongside other forms of investment to spread the risk.
4. Mutual funds – Essentially this is a mixture of stocks and bonds that are part of a fund with other investors. However, it does also mean you need to be careful to ensure that the manager investing has the experience and track record to get the most from your money!
5. Hedge funds – You may have heard this referenced in the media. Essentially these work on similar principles to mutual funds but are potentially riskier due to the broader range of investments and they are often based on borrowed money.
6. Precious metal – Gold is the obvious one here although other precious metals are often considered an investment as well. As with stocks their value can fluctuate.
7. Commodities – Any number of things can be a commodity that can be traded. Oil is probably the first thing that comes to mind however coffee, beef and many others can also be invested in.
8. Collectibles – Art, fine wine and antiques are all examples of collectibles. However, it is important to get the right advice in ensuring you get the best deal (for example a lot of comics are marked “Superman Issue 1” but are not the original Action Comics issue that is a highly sought after collectible).
9. Venture capitalism – This is one you may not necessarily have thought of. Ever think “I wish I had invested in that business?” The thing is it is possible to be the one that gets there first. Admittedly there is also the risk of backing a business that doesn’t go anywhere but as with other forms of investment if you spread the risk it can be a potential extra earner.
10. ISAs – As a tax free entitlement it is a good option to add to your savings. With more flexible options available now you can also have more freedom when it comes to accessing your money.
These are just a few examples of potential investments. If you would like to know more about ways of investing your money contact us today!