Contents
1. Forex
Forex, foreign currency exchange, is one of the most likely investments for beginners. You must study the patterns, major financial announcements, economic and political news as well as able to accurately predict the buying power of different currencies as their pair with other currencies in the CMC Markets. It is extremely high-risk and profitable investment that should be carried out with a lot of care and insight.
2. Raw material
You can invest in raw material like iron, gold, silver, cotton, natural gas, cattle diamonds and more in a market referred known as a commodity market. You can invest in commodities depending on the type you pick and the kind of investment vehicle you want. The problem with commodities and why they seem to be more speculative is that they respond to different market conditions. In short, the markets for commodities are closely related to the movement of currencies. They gain when the dollar is weak and loose when the dollar becomes strong.
3. Bonds
Corporate and government bonds typically carry a moderate risk level when investing. Bonds are debt securities that require a borrower to pay principle and/or interest to you as an investor at a later date. It is often attracts a low interest rate, unless the borrower fails to pay, so the risk is minimal for the investors. You also have the opportunity to allow the money to increase while your children are growing up. So, by the time your child/children reach 18, the bond investments can immediately be cashed out for education or other expenses.
4. Real estate
Real estate is another key investment opportunity where you can make money. There are various ways that you can invest in the property market, including:
• Buying property direct
• Real estate investment trusts
• Buying and selling mortgage notes
Depending on the method of investing you choose, property investing can be very rewarding if done in a correct way and in the right locations.
You can invest in a company of your choice by purchasing its shares via a stock market. It is one of the most popular types of investing that engage in. As opposed to other forms of investments; each share you buy represents a portion of ownership of the company. Just like any business, you can make profit if you decide to sell the shares or lose money when the company does not perform well in the market.
6. Become a partner in a small business
Sometimes starting your own venture from the scratch would be very risky, or even more risky to consider an investment. However, you can become a silent partner in an existing and promising business. This is possible because owners of SMEs always find it difficult to get financing from financial institutions to expand their businesses. As an investor, you can offer the investment capital that will help existing and successful SMEs to expand. Instead of providing a loan to such businesses, you can arrange with the owners to become a shareholder/silent owner. This will entitle you to a given percentage of ownership for both the business and the generated income.
7. Pay down debt
Pay down debts sound very simple and the most common way to make money investing. Paying down your debts reduces your financial risk and gives you the freedom from debt. For instance, if you pay off a credit card with a 10% interest, it will translate to earning a 10% rate of return on a similar amount of money you invested in another asset. Besides, the return that you will receive on paying off debt has no tax obligation.
8. A CD ladder
You probably understand that the returns on the currency market these days are very minimal. However, you can use the Certificate of Deposit (CD) improve your returns by creating a CD ladder. This will enable you to develop your personal money market fund. For instance, if you are building a portfolio now by investing in CDs that mature in one or more years, each year you will the opportunity to buy CDs at a higher rate, providing the interest rates increase.
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