When investing, it’s all about the return and the risk. Most high return investments also have a significant amount of risk, but by diversifying properly you can avoid the worst of the risk while maximizing your overall returns. Here are some of the top five investments you may want to be investing in now.
1. Lending Notes
Lending notes have just become popular in recent years. A lending note allows you to purchase only a small portion of a loan and to reap the benefits of the interest. Lending notes often give you anywhere from an 8 percent to 10 percent return and function similarly to three year or five year certificates of deposit. What’s even better is that lending notes have fairly low risk. There are very few defaults and the defaults are calculated into the projected return.
If you have a lot of cash to invest, one of the highest return and yet highest risk investments you can choose is a startup company. Being a venture capitalist often means that you’ll lose small many times before you win big, but if you have the mental fortitude for it you may be able to make a significant amount of money.
The foreign exchange market is the perfect place for an investor who wants to be extremely involved in their investing plan. With the forex market, you get directly involved in the most highly-paced market in the world. The foreign exchange market is significantly higher risk than the stock market but also yields extraordinary returns. Choosing this option should come after a lot of research and understanding what are you best options in the market and what you are willing to lose with the potential of great gains.
Property is one of the most stable investments in the world. To maximize your returns, you need to invest in property within a developing market that is experiencing significant growth such as California or Utah. Home builders are the perfect collaborators to work with in this venture. They will have the knowledge behind the decisions there are to make and know how to discover quality homes that can be used for rental purposes and a high return on value. Property is an investment that is difficult to beat, as it allows you to acquire revenue while also building equity.
5. Secondary Markets
Secondary markets are unique investment vehicles that give investors the ability to invest in companies that are not yet on the exchange. This offers an investor an incredible opportunity. However, it’s only open to high-income individuals as the risks are quite high. Investors that don’t meet the stringent requirements of these secondary markets can instead choose to invest in companies that invest in secondary markets, much like those that are interested in investing in real estate but don’t want the burden of actual property can instead invest in real estate companies.
So here are a couple of great options that most everyone can work with. Before investing in anything, make sure to make a game plan and know what you can do. Great risk usually velds great rewards, but it is not always worth it if you are not financially prepared. Know your limits and what you should be in market for.