5 Lucrative Investments That Should Be Part Of Your Portfolio

| August 20, 2015 | 0 Comments

Every investor knows that a diverse portfolio is essential to spreading your risk. That means having lots of eggs in lots of different baskets. If one investment goes south, then at least you’ve got four or five others to even out the losses. This tactic is investment 101. But where exactly should you spread your money?

The experts suggest taking a couple of ‘safe’ investments that should keep your portfolio steady. These are low risk, low earning investments that keep your money grounded. From there, you can place a few higher risk investments in choice categories. Let’s take a look at a few common options.

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  1. StocksStocks and shares are the first thing you think of when you think of investing. Buying shares means buying a small part of a company. Your money grows or shrinks with the success of the business. Within this category, you should spread your investments again. Start with one or two rock-solid companies. These are usually the big corporations that see small, steady returns every year. Following that, you can place some more lucrative investments in fluctuating stocks. (If you’ve got the stomach to make those risks!)
  1. Oil – Over the last decade, investing in oil has become very popular. You don’t need us to tell you that there is big money in this industry. Oil has contributed to the rapid rise of Middle East powerhouses like Dubai and Qatar. Individual oil barons are now worth billions in personal wealth. It’s a secure industry with a global market. As a result, oil investing is a very profitable route. Just make sure you understand the market, and the factors that affect it.
  1. Gold – Gold is often considered the financier’s ‘anchor’ investment. It is relatively risk-free, and provides investors with some solid ground for their portfolio. In fact, gold as one of the few commodities that barely wobbled after the 9/11 attacks. It also stayed strong throughout the recent recession. The only trouble with gold is that it won’t make you rich. It’s risk-free, but it also pays out slowly. That’s why investors typically use it as a foundation or safety investment.
  1. Currency – The currency market is one best ways to make money as an investor. The best thing about it is that the markets are open 24/7. Even if your domestic market is closed, you can exchange currency in the eastern markets or trade in Europe. As you’re aware, currency values fluctuate based on all sorts of global issues. If you invest at just the right moment, you can take advantage of these fluctuations and make a small fortune.
  1. Property – Lastly, it’s always worth putting some of your money in the property market. This is another long-term strategy. If played correctly, there is a lot of money on the table here. In general, the property market always moves up. Hold on to your house for more than five years, and you’re bound to make a profit.

As you can see, a wide portfolio of investments is the best way to go. Make one or two ‘anchor’ investments that keep you afloat. Use your initiative with the rest. Good luck!

 

Category: Investment

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