Some people find investments to be intimidating since they can’t determine the one that suits their portfolio. 2020 is a year of financial breakthrough, and as an investor, you shouldn’t be intimidated by the several options. Instead, you should weigh them carefully, then invest in the one with the highest returns.
You’ve probably heard some terms, but you don’t know what each investment option entails. Here are the investment options that you should know about and invest in this year.
Options Trading
Some traders tend to be scared by the prospect of investing in options since they consider it complicated. Options are a contract to buy or sell stocks at a given price and on a given date. The investment option offers flexibility since you are not under obligation to buy or sell the stock. It’s a viable option to consider this year, and there are several options to choose from, such as calls, puts, strangles, straddles, iron condors, among other options. Investment specialists at NetPicks.com consider options strategies as ones that will allow any investor to trade their expectations of the market and control the level of risk they are willing to participate with. With options trading, you can choose to be aggressive or conservative. You can trade using different strategies to make a profit in other market conditions.
Cryptocurrencies
Cryptos are digital currencies that lack government backing. Bitcoin is one of the many cryptocurrencies used worldwide, and you can sell or buy them in cryptocurrency exchanges. Financial analysts consider cryptos to be an investment with wild fluctuations, and with that comes great risks and substantial profit margins.
Mutual Funds
Mutual funds refer to funds from different investors diversified into bonds, stocks, and other assets. Mutual funds are run by financial managers who invest the funds on your behalf to make a profit.
Certificate of Deposit
The certificate of deposit is a type of savings account offered by banks in exchange for your money. The investment is slightly different from a fixed deposit account since you have to commit that you won’t access the funds for a given duration. In return, you get a better interest rate, depending on how long your money stays with the bank.
Real Estate Investment Trusts
REITs are a form of real estate investment whereby you invest your money in a company that owns the property and shares a slice of the profits. A real estate investment trust can be a lending or ownership investment, and it depends on what you buy. If you invest in a mortgage of real estate, it will be a lending investment. On the other hand, if you choose to buy a real estate share, it’s considered an ownership investment.
Bonds
Bonds refer to a loan that you give to the government or a company. The company or government will return your money with interest, and financial analysts consider the investment option to have minimal risks. However, they offer low returns compared to other investment options.
Real Estate
Most people choose to invest in apartments or houses that they either resell or rent out to tenants. It’s a viable option, although, in the event of a mortgage meltdown, like the one experienced in 2008, it could bring losses since lending institutions sometimes reclaim property that was listed as collateral.
Annuities
Annuities refer to a contract that you make with an insurance company, and they offer periodic payments in return. Most people invest in annuities as a retirement savings strategy, and it’s also a viable investment option. The insurance company can begin payment immediately or on the date agreed upon.
A Business
Businesses are a significant investment worth considering, and all you need to do is invest your money in your business. Offering people products or services will yield a profit in due time.
Stock Markets Investment
You should also know about stock investments or investing in individual companies. It’s one of the easiest ways to make money, and all you need to do is buy shares, and when the company makes profits, you get your fair share. Stocks have a faster return on investment than other types of investment; therefore, you should prioritize it this year.
There are many opportunities, each with its pros and cons, that you can choose this year. Some investment options are suited for beginners, while the more experienced folks can manage others well. It’s also important to note that each investment has its risks and rewards, and before settling for investment options, it would help to research it or consult a financial expert.
