Investments diversification also means you need to know which investments channels are good for better return of your investments.
There are many types of investments, but how do you choose the best investment types for you. Let us look at the different types of investments, its outlay, tenure and returns.
Stock Market
There are so many stock markets and stocks to buy from, which ones would give you the best returns of your investments.
The volatility of stocks during these uncertain times, deter many from investing in the stock markets. But, many who are skilled in identifying the best stocks to invest in, see a very high and fast return of their investments.
During pandemic times, you can see many blue chips like the banks, oil and gas and property shares plummeted, while medical and consumer shares multiply by many folds.
For stocks, you can buy in lots of 100 shares or more. You need to pay for the total amount of shares you purchased, unless if you use the CFD method.
There is a minimum transaction fee of $10 or more plus 0.018% of the total transaction.
Investments returns can be seen in a matter of minutes or years. Many skilled traders close their day to trading plus settlement date tradings for livelihood. Return of investment can vary from 5-500% or even losing portions of amount invested or everything.
So, how do you identify which shares to invest in?
Mutual Fund
There are many types of mutual funds that you can invest in. You can do monthly investment of one time off investment for any specific funds within the company. Mutual funds are available through banks and insurance companies.
It is best to invest for the period of 2-10 years to see good returns of investment, which can vary from 20-45%
There is usually a fee of 1-5.5% for each transaction.
Forex
Forex are usually trade with leverage. Usually 10-500x leverage, hence the profit can be high and the risks of losing can also be very high. One needs to be very skilled to understand the markets and technical analysis before investing in forex.
Day traders can earn as much as 500x more than their investments or lose 500x of their returns too. So, invest with caution when trading forex.
The fee for forex trading usually range from 1-3%, depending on the forex exchange or trading platform used.
Crypto Investing
Cryptocurrency investments are very volatile. One needs to understand the technicality and trends to be an informed investors in crypto currencies.
However, there are many investors who are buying crypto currencies and averaging down their price by purchasing more during times when the rates are lower.
Here are some information on crypto currencies investments platforms.