Given the current global cues and the fact that the world economy is not picking up as expected, it is but natural for investors to be a tad worried. If you are on the lookout for smart investments which can assure you of a good ROI on your investment on year on year basis, then you would want to check out some of the prospective investment opportunities posted below.
Stock market: It is a given that most of the world’s exchanges are overvalued, and needless to say that they may present a challenge to most investors. But what should be pointed out is the fact that these stock markets, at times can act as emotional weathervanes, under certain circumstances. And that’s the current scenario that is playing out at the Bombay stock exchange or the BSE as it is more commonly known. With just a week left for the largest democracy going to elections, it is widely expected that the election result would see a rally play out in the stock market, with tech, defense, medical stocks gaining fast. And this is a perfect opportunity for both experts and first-time investors alike.
Stick with SIPs: Given the volatility in the world markets, it makes sense to stay committed to SIPs. SIPs or systematic investment plans are primarily linked to mutual funds, which allow investors in India to invest in small amounts in various plans. Other countries have a similar format, with the reasoning that investors can invest what they feel comfortable with and purchase as many units as they need to. And during lean periods, the value of the unit would drop which would make it perfect for purchasing. You would, of course, have to check out the various Sips that are currently available and make the necessary adjustments to your investment portfolio so that you are able to earn better ROI on the same.
Peer to peer lending: This is not available in all the countries, but if you are located in the US or UK, then you can participate in peer to peer lending. Essentially you would act as the bank and lend funds to a third party through a platform and earn a decent interest for your trouble. You can make a generous 6% on your ‘investment.’ What makes this less risky is that your investment would be broken up into smaller increments of $25 which in turn would be used to fund hundreds or thousands of loans. For example, there may be several startups that have a sound business plan but need an excellent HQ to base their location in and need investment right away. So mostly your loan would help this company center their business operations from a center that is more critical to the success of their business, and it would help them to grow as a result. Essentially, you would be helping out others with this form of investment @6%.
Precious metals: The one thing that you can count on, as far as precious metals go, is that there would always be a demand for the same. You can invest in the usual line up from silver, gold, and platinum to various other precious stones such as emerald, ruby and so on. But you can also include Palladium and other rare earth metals in the same as they see a sharp increase in value due to the overall demand.
Real estate: You would still need to do your research; you may want to find out if any significant real estate company is floating around real estate funds that you can invest in. Primarily, you spend a certain amount of capital, and the third party then develops a property, sells the same at a profit or leases it at a profit, with the agreed differential being credited to your account.
These are some of the ways that you can invest your hard earned money, and make some steady ROI out of the same.