There are many ways to invest, with each offering a different chance of success and different returns of your initial investment. Stocks and shares may be the most well known way to invest, but there is a huge selection of alternatives.
Wine
Investing in wine can see some huge returns, with some bottles increasing in value by up to 30 per cent each year. However, there are some things you should watch for. You should be sure to buy from a reputable wine merchant. The wine market is unregulated, so be sure to research a merchant before you work with them. Brokers should not charge any sort of consultation fee, so look out if any do.
Antiques
Antique dealing can also lead to a great return on your investment. You can have a lot of fun scouring auctions to find bargains which can then be sold on for a good return. However, you need to know the market well to make significant amounts of money. You have to know what is in demand and what will sell. You may want to consult an expert antiques dealer, who will be able to tell you what to look out for. Making money by investing in antiques can take a lot of time and effort. If you want to be really involved in the investment process and you enjoy the work of looking for antiques, this can be a lot more appealing than investing in shares.
Micro lending
Investing in a small local business with a micro loan can be a great way to help businesses thrive. You can also get a good return. This allows you to target exactly the businesses you want to help, and can see exactly what your money is used for. If you want to be more involved than you would be when buying shares, this can be a great way to invest.
Property
One of the most popular ways to invest, especially if you are new to the market, is property. This has many advantages over traditional stocks and shares. Not only can you live in one of your investments, you can rent out other property and have a guaranteed source of income until you want to sell it. One of the most effective ways to invest in property is to buy a cheap property, renovate it and then sell it on once the improvements have been done. You can save money during renovations by doing as much of the work as you can by yourself.
Commodities
Investing in precious metals is a wise move, even during a recession. This is because there is always demand for precious metals, even if people are buying fewer luxury goods. Technology manufacturers always require precious metals, and you can diversify your portfolio by, for example, buying gold bars and investing in gold mining operations. Gold is also less likely to lose its value than currency, which makes it a secure investment during tough economic times.
Hedge funds
Hedge funds pool money and buy into many different types of investment opportunities, which will reduce your risk. However, this can mean your investment portfolio becomes more complex, so you should make sure you have some knowledge of trading and markets before you enter into a hedge fund. Keeping up regular communication with your hedge fund manager is advisable to keep informed about your investment.
This article is brought to you on behalf of Emanuel Arbib of Integrated Asset Management – visit his blog for information about investment.
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