When it comes to investment, it is often said that the higher the risk, the higher is the propensity to make profits and lower the risk, lower is the number of profits you can make through the investment. In other words, investments that are comparatively safer, do not make many profits and hence are ideal for the middle-aged or people nearing retirement. While high risk, high profit-making investments are for youngsters or people who have a high risk-taking threshold. The economic meltdown, however, has changed this thinking completely; beforehand you could have had a self managed super fund with a high amount of success, now it would be too volatile to self-manage a fund. Today, irrespective of their age or the number of profits an investment promises to make, people are vying for safe investment options. Stock markets, mutual funds, real estate – the sectors in which so many people lost their money during the economic recession, are no longer considered amongst the safest investment options today!
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Investment Options with High return and Low Risk
1. Gold Investments
Gold investments can be one of the good investments for 2011 considering the overall stability in the gold prices. Gold bought in the electronic form is a great investment option and is amongst the top safe investments with high returns. This is one of the best long term investments for people who vary in investing in risky options such as the stock market.
Bonds are also safe investments with high returns considering that the investors in bonds receive attractively and fixed returns every year. Bondholders actually give loans to companies when they subscribe to their issues. Most analysts will suggest buying bonds of fundamentally sound government companies that have high revenues, high net profits, and proven performance history. These are the most popular investment ideas for 2020.
3. Residential Real Estate
If you are thinking of long term investment strategies, then investing in residential real estate at this point in time would be the best option. History shows that real estate investments give phenomenal returns over the years and are mainly dependent on market conditions. Generally, in times of economic recession and credit crunch, real estate prices fall heavily. Long term investors can use them as buying opportunities and buy properties in good projects for high returns. Since prices have bottomed out at most places, the risk associated would be limited and the gains would be large in the days to come. Real estate has been included in the safe investments with high returns list for many years. You can know more about good investments for young people.
Commodity trading is actively done by many knowledgeable investors and it can be highly profitable if done in a professional manner. You should have complete knowledge of commodities and be able to analyze their performance to succeed in this area of investing. The best ways to invest money will give you more information.
5. Deposit Schemes
Deposit schemes offered by banks and financial institutions often give high returns to investors. However, at many places, there is a time period for the investments and you need to have the financial discipline to continue the scheme till that date. After doing so, you will get good annual returns and get a large sum of money after the end of the scheme period.
6. Mutual Funds
Mutual funds can be safe investments with high returns as you do not have any kind of direct stock exposure in this form of investment. Your money is much protected and the returns can be anything between twelve to twenty-five percent depending on the kind of fund and expertise of the fund manager. The data on the best mutual funds for 2020 will help you to choose a good fund for yourself.
These were some of the safe investments with high returns with the help of which you can plan your personal investments. Always take guidance from experienced advisers before you actually invest your money. So, hoping that you will earn better profits with these strategies, I would like to sign off here. All the best!