During turbulent times, investors are right to second guess themselves and ensure that their hard-earned cash is being invested wisely. While short-term investments can be lucrative, it’s the long-term ones that make the substantial profits over time.
The coronavirus has all but brought new investments to a halt as people begin to worry about the future. As it stands, according to the World Health Organization, 160,994 coronavirus cases have been recorded globally so far. Many fear that corona could bring the world economy to a standstill and cost a total of $2.7 trillion in lost output. We’re taking a moment to look five of the safest ways to invest your money as corona sweeps the world.
Stock funds, whether an ETF or a mutual fund, are a good and safe way to invest money. Stock funds are suited to investors who want to profit from the stock market but don’t want a full-time job of monitoring rises and falls. With a stock fund, investors get a weighted average return on their money from all the companies included, making it a safer bet than just holding a small number of stocks.
Growth stocks do come with some risk when it comes to investing but they also offer the promise of high growth and massive returns. If you don’t mind taking some risk, growth stocks can offer substantial returns quickly and perform generally well over time. If you do invest in a particular growth stock, make sure you do your due diligence and research. High-risk tolerance is a must and you’re looking at between two and five years for a return.
Real estate is one of the best investments and a great place to keep money. It takes to capital to get started on the property ladder, but returns are high, constant and most importantly, long-term. Real estate is probably the most popular investment around the world and is considered for the most part to be safe and secure. If you invest in a good property in a good area and manage that asset well, real estate is one of the safest places to put your money at this time.
Whether a mutual fund or an ETF, bond funds contain several bonds from a range of issuers. With a bond fund, investors receive a pre-agreed amount of annual interest. When the bond expires, the issuer repays the principle before the bond itself is redeemed. Bond funds are considered to be safe investments as they are diverse and hardly affects by just one problematic bond. If you want a stable, long-term investment, bond funds are well worth considering.
Investors who want to play things on the safe side, especially during these uncertain times, may wish to opt for an IRA CD. Having an IRA CD offers the benefit of guaranteed income with zero risk. All one need do is stick to the rules of the IRA and let the interest build up. When it comes to getting paid out, this is a solid investment opportunity.