There is something about putting money into an investment that intrigues a lot of us. Perhaps it is because you can start from anywhere with any amount of money to become a good investor with great returns. Understand that you don’t just have to place your money in the stock market as there are countless ways to invest. All investment methods come with unique risks and benefits, and they all have varying interest rates and timelines. Here are some of the safest and most profitable ways to invest your money in 2017.
Bonds
In any financial plan, bonds are core elements to investing in and growing wealth as they are types of investments where investors lend money to certain parties in exchange for variable or fixed interest. With the different options available, including treasury bonds, municipal bonds, savings bonds and commercial bonds, you must understand the best among them for your situation and the dangers presented by your preference. The price of each bond is equivalent to the amount lent to the entity, meaning that as an investor, you get your interest after loaning the money. Note that the higher the interest received, the higher the risk, so be careful when choosing the bond to invest in.
Real Estate
Real estate is high risk because its development and buying of land and private real estate funds come with possible financial perils. However, it is not as much risk as it may appear, given that it is a large market that can give high profits, depending on how you approach it. You can choose to rent out the property to businesses or tenants through buying and selling or capital appreciation. It is, in fact, a safer investment than most others because it is a physical asset that is always on demand. People are looking for business buildings, and others are looking for a place to call home every day, making real estate investment highly profitable. If you are reluctant on using your money to purchase a real estate, you can invest in a real estate investment trust.
Peer-to-peer lending
If you are looking to invest in people and earn good interest, there is a new craze that is both reasonable and exciting and is known as peer-to-peer lending. This is the practice of lending to borrowers in an online platform where the goal is to bring both lenders and borrowers together. Like any other investment, be sure to choose notes that reflect your risk tolerance as some are riskier than others. After borrowing, the peers are expected to pay back the loan with a given interest rate, meaning the benefit of such lending is minimised risk as money is spread out to many borrowers. Instead of placing all your funds on one borrower who may delay the payment or fail to repay, the lending companies lend to many so as to compensate for possible losses.
Gold
From gold stocks to gold exchanges- traded funds, as an investor, you now have multiple options when it comes to investing in the precious metal. Have you ever wondered if it is worth it to invest in gold and the exact purpose of the metal in the market? The fact is that, although gold is no longer in the forefront of transactions, it is vital in the global economy, especially the international monetary fund and balance sheets of central banks. Regardless of whether you are focused on protecting your wealth or are simply worried about inflation, gold has proved to offer a diversifying component in many investors’ portfolios. It is ideally a major physical asset that holds real and great value, making it a perfect investment when handled correctly. It does not only come in the form of jewellery but can also be found in bullion bars and coins that can be stored safely in a bank vault or even at home.
Those above are some of the smartest ways to invest, and it is important that you make solid decisions that are based on the present investment opportunities. If you choose to invest in stocks, for instance, it is advisable to have a good look at brokers such as CMC markets to have a better understanding of what to embrace. Have basic knowledge of your preferred method before you begin and focus more on the lower risk investments if you are not sure.