Over the years, financial security means different for several people, be it a secure six-figure income, saving up for retirement, or buying real estate properties. You are left without any constraint, considering the long term financial goals that you have planned. Lear Capital guides you through this process with a definite plan to make a profitable investment both in the short term and in the long term.
Investment requires maintenance and refinement to ensure a smooth pathway to your goal. Wondering which investment plan to focus on? Here’s a detailed description curated explicitly for you.
Here are the best investment plan options in 2020:
Real estate.
Either through commercial, residential, or industrial properties, one can invest in the real estate business. Expectations of higher capital gains are anticipated as property values progress over time. Location plays a vital role in building your investment in the real estate field. Residential property income is in the form of basic rent, where the tenants pay a fixed amount every month. There are other alternative incomes in the real estate sector, like mortgage-backed securities and Real estate investment trusts and groups.
Bonds.
Purchasing a bond allows the issuer to borrow your money and pay you back with interest. It is a loan you make to the bond issuer. Though they offer lower returns, bonds are considered safer than stocks. It is a fixed-income investment where the investors get regular installments. Since interest rates determine bond rates, they are heavily traded when the central banks raise the interest rates.
Stocks.
Owning stocks has long been considered the best, yet a risky way to build one’s wealth. Investing in stocks is a way to increase your money and surpass inflation. Being a shareholder is like playing the game of money because stock prices fluctuate throughout the day. Sometimes investors earn higher returns or end up losing all or part of their investment.
Investing in stocks carries higher risks than other investments, but it also gives large rewards. Shareholders also get dividends through some stocks. There are two types of stocks. First is common stock where investment is done in a public company, though the dividends are unsure sometimes, second is preferred stockholders have a higher claim to fixed dividends.
Mutual funds.
Portfolio managers generally manage mutual funds. It is a type of investment where the investor purchases a large number of investments to buy securities, and the fund manager distributes the investment into other securities. The investor can either earn a steady income through dividend option or re-invest via a growth option. Choosing an apt fund manager is vital. Based on extensive research and credentials, one should select their manager.
Fixed Deposits.
If you are afraid of risks in the investment field, investing in fixed deposits is the answer. It ensures guaranteed returns and capital protection. A company fixed deposit ensures higher rates of interest. The rate depends on the economic stability, and the interest earned from a fixed deposit is taxable. A fixed deposit is the safest investment for a conservative or beginner investor.
Conclusion.
Having a brokerage account helps you to buy and sell investments more efficiently. Other than the investments mentioned above, one can also invest in education, money market funds, business or even having a savings account are profitable
Planning your investments and finding the right profile is essential. Fast earning schemes that promise high returns in a short time should be avoided at any cost.
Safety, income, and growth must be your three main goals while investing in any field. Establishing a time frame is also a primary concern for the investor. Having a timeline on how quickly you want to make money and determining an investment path is necessary.
Countless research and knowledge in the investment field are essential. For beginners, as mentioned previously, it is crucial to examine and also diversify. Lear Capital has experienced specialists who would promise a smooth investment plan at your doorstep.
