Looking for someone to put your money to help it grow? There are many different places where you can invest your funds. Below are 7 of the most popular options to invest money.
Savings accounts are the easiest and most secure place to invest your money. Because of this, they are the most popular place to invest money. Unfortunately, you won’t earn much of a return through them. Most of today’s savings accounts have such small interest earnings that your annual return is unlikely to be more than 0.24%. Invest elsewhere if you want to grow your money faster.
When you put money into bonds, you’re essentially lending it out for a short period. You then get interest paid back on it over time. This interest can vary, with some bonds such as Premium Bonds offering additional random prize rates that you can win. There are many different types of bonds that you can look into including government bonds and corporate bonds. The average annual return on bonds is about 1.4%.
Stocks and shares
Investing in stocks and shares has become much more popular as a result of a number of free trading apps. It’s a bit riskier than investing your money in a savings account or bond – if you invest in the wrong company at the wrong time, you can lose your money.
However, by spreading your funds among several companies that each have a relatively stable history, you can usually guarantee some kind of return. The average annual stock return is about 7 to 10%, so you’ll likely make more than savings or bonds providing that you invest in the right stocks.
Investing in real estate requires a lot more capital than other forms of investment. It can also be more hands-on than other investment strategies. However, you can make a decent return from real estate, plus any work poured into your investment properties can be very rewarding.
You can shop for investment properties with the help of consultancy companies like BuyAssociation Group. Renting property is the most popular way to make money from real estate, although you can also flip property. The average annual return on a property investment is 10.6%.
Collectibles are items that are popular among collectors such as antique furniture, vinyl, fine wines, and trading cars. Over the years, these collectibles can increase in value (particularly rare collectibles that are kept in good condition and that are well sought after). Collectibles can make a fun form of investment because they can often serve ornamental or even practical use. Just be wary that they may need to be kept in a certain condition to retain value (for example, collectible toys are best kept unopened in the box). The average annual return of collectibles can vary depending on the item but is typically 2 to 3%.
Forex trading involves investing in foreign currencies. By buying a currency that is rising in value and selling it before it falls in value, you can make a profit. It is best to invest in several pairs of currencies in order to reduce risk. Many people are able to make over a 10% annual return through forex trading. Check out this guide to investing in forex at Investopedia.
Cryptocurrencies are digital currencies that can fluctuate in value just like traditional currencies – often increasing or decreasing much more dramatically in value. Compared to other forms of investment, investing in crypto can be quite a high risk. However, the potential returns have made it very popular – it is not uncommon to make an annual return of 10% or even 20% providing that you’re investing in the right cryptocurrencies.