No investment is entirely risk-free. However, there are some options in which the odds are certainly much more favorable. Whether you have a small amount of money or a large sum to play with, you’ll want to invest wisely in order to get the largest return possible. This means doing a lot of shopping around.
If you have the funds, an investment broker may be worth investing in – a professional who can do the shopping around for you and place money into the right stocks at the right time. Of course, hiring a broker does take trust and many may prefer to save the money by taking the gamble yourself.
If you’re currently unsure where to put your money here are some of the safest bets that might be worth researching further.
Getting on the property ladder is hard work, but once you’re on the first rung, moving onwards and upwards gets a lot easier. Most property naturally appreciates over time, so if you have the funds to pay off a mortgage you can sit on a property a few years and slowly get your return.
Of course, there are faster methods such as renting out property – in which your rent covers the mortgage. This entails a lot of work as you have to ensure there is always a tenant and that various laws are always met and that repairs are always carried out on time. However, if you eventually decide to stop renting and sell, you will earn the entire value of the house plus any appreciation value it has gathered over time.
Renovating property is another popular option – which involves doing up a house to increase its value and then selling. Other techniques can include buying big and downsizing, buying a house in an upcoming area or flipping property. With new properties being built all the time and interest at an all-time low, there has never been a better time to invest in real estate.
Gold is never going to become worthless, unless we uncover a massive gold mine on another planet one day. Prices tend to fluctuate but will always return to a steady incline, many considering it a ‘safe haven’. Political tension is currently causing many investors to turn away from company shares in exchange for gold.
You should always research gold firms to make sure they have a consistent A + rating. This investment is suitable for any amount of money, although you should make sure the gold you’re buying is something you can sell when you need to.
Only recently has this become a big area for investors, largely because the forecast has been difficult to read until now. Sites like Myspace proved that a social media site could become hugely popular and then fade away in a few years.
Many worried this may be the case with Facebook and Twitter, however, they have proven their stability and only seem to be growing, making it unlikely that a new social media giant will come along and seize the day anytime soon.
In fact, like Google, these social media platforms have almost wiped out all competition (although Instagram and LinkedIn are also still relatively safe bets). Having a good understanding of how social media works, and where to invest is important. This site offers more information on the matter.
Investing in new technology can be risky, especially in this fast-paced digital age. You may find the next big thing, but another next big thing may come along eventually and swallow it up (for example vinyl being replaced by cassettes and then CDs and then downloads and now streaming services like Spotify).
Right now, cloud technology appears to be the next big thing – growing at a rapid 28% year by year. More businesses are seeing the potential of cloud storage – a technology that allows you to work on information remotely from any location without using storage spaces on your personal devices – and this seems to be the forecast for the next few years.
Perhaps a new intangible technology will replace it in years to come, but it’s unlikely to just be a fad. As a short-term investment, it may be the most profitable right now.
Digital security is much needed in this constantly growing digital world. Software is constantly having to evolve to protect against new viruses and hacking methods. This makes it a good source of investment, that’s likely to be profitable for years to come.
Whilst investing in startups can be risky, new businesses in the cyber security industry may be some of the most profitable. Creating digital security software may cost some money, but maintaining it doesn’t (unlike other companies that may require office space or large workforces to pay for). This means the profits will always be larger. It’s one of the few investments which benefits both the startup and investing firm.
As with all other investment plans, you should do your research first. Get to know the startup owner and their background to ensure that their business plan won’t be a flop.
Oil prices have started to bottom out as more and more people are becoming environmentally aware. Businesses are going all-renewable as a way of marketing their business and even homeowners are starting to fuel their homes on renewable sources such as solar energy in order to cut their electricity bill.
As a result, there’s never been a better time to invest in renewable energy. With the demand constantly growing, more and more wind farms and solar panel companies and electric car manufacturers are springing up.
Wind farms have become a particularly popular option due to how lucrative they have proved to be. Once set up, wind farms require hardly any funds to keep running resulting in a huge profit.
Of course, you should always gather background knowledge before going down this avenue – you don’t want to invest in the construction of a wind turbine, only for it to be ripped down by a local council two years later because the neighbours found it an eyesore and petitioned for its removal. Get to know the location in which you are investing your money and whether the people there are behind environmental projects.
Due to today’s political climate, you could argue that this is very risky investment strategy. However, as a short-term money-making scheme, it can gain you a healthy return, so long as you keep abreast of foreign news and currency exchange rates.
Track the history of a foreign currency so that you can get an idea of where it’s headed and how volatile it has been in the past. Find one that seems to have a fairly predictable curve to it and make this your currency of choice.
Unlike other investments, you can pour pretty much any amount of money into this from several grand to £10. Of course, you will have to take into account the transfer cost, which varies massively from company to company. Transfer companies will often provide different rates for different amounts, so bear this in mind.
ETFs are generally a safe bet as you don’t have as much leverage-related risks. CurrencyShares and WisdomTree are two of the largest and most reliable ETF providers. Those that want to invest in foreign currency directly should look into Forex trading.