If you have money to invest, you’ll want to ensure you have the best chance of getting a good return. Of course, it’s always important to assess the level of risk you’re willing to take before you decide where to put your money. While low-risk investments, like savings accounts, offer fairly modest returns, they do keep your funds secure.
In contrast, high-risk investments can increase the chances of you losing your capital. However, if your investments are successful, you could generate extremely high returns. With this in mind, take a look at the types of investments that could offer great returns in 2021:
Property is a popular form of investment, as people assume that it will always hold its value. Although this isn’t necessarily true, buying at the right time can help to increase the chances of your property growing in value.
In addition to this, property can allow you to generate rental income in the short and mid-term, as well as increasing in value in the long-term. By working with specialists, such as an East London letting company, you can ensure your rental property is occupied by tenants year-round. This boosts your income and may even give you the financial stability you need to purchase another property and extend your investment portfolio.
If you watch the news, you’ll know that digital currency, Bitcoin, has just hit an all-time high. For investors, this represents a growing opportunity to profit from the rise of cryptocurrency. While you might have missed the boat when it comes to Bitcoin, there’s always a chance that prices could continue to rise.
However, there are many other digital currencies you could invest in. Buying when prices are low gives you the chance to make large profits if the value increases. Of course, you’ll need to be familiar with exactly how digital currency works before you begin investing your capital in this way.
3. Stock Markets
Trading on the stock market may seem like a traditional way to invest, but it can still offer exceptionally high returns. There are many ways you can invest via the stock market and it’s important to consider all the options before you decide what’s right for you.
If you want to invest but you don’t have the experience or the confidence to trade yourself, you can always pay into a fund or appoint your own investment manager. This allows you to choose the industries you want to invest in or the types of investment you want to make but also ensures that you have access to specialist advice.
Building Your Investment Portfolio
A diverse investment portfolio doesn’t just make investing more exciting; it can also help to protect you against potential losses. By choosing two investments that react differently to economic changes, for example, you can try to mitigate against financial loss and boost your returns.
Despite there being some economic downturns this year, there are always viable investment opportunities available. By making the right investment decisions now, 2021 could be your most successful year yet!