Investors of all experience levels stay on the lookout for opportunities to gain the most profit possible from the money they invest. And while there are no guarantees in the world of investing, there are several investments that have stood the test of time while consistently delivering positive returns to investors.
S&P 500 Index Fund
The S&P 500 Index Fund includes a collection of America’s largest companies. Investors that hold on to shares in the fund for the long term can minimize the risk they face due to the hundreds of companies that are part of the fund and realize a good return on the money they invest.
These investments are great for individuals who want more in return than what they can receive through bonds. Investors should also possess the time anfd patience to await these higher returns.
Real Estate Investment Trust
REITs provide more people with the opportunity to invest in real estate. These companies own and manage income-producing real estate.
REITs allow individuals to enjoy the benefits of real estate investing without the hassle of owning and managing a property on their own. Retirees and other people in search of passive income that provides them with a good return on investment have found what they were looking for with real estate investment trusts.
Investors can choose from various subsets within REIT markets that include housing, commercial, retail, and hotel REITs. Regardless of the subset, investors will benefit most by concentrating on REITs that have a long history of healthy dividend payments instead of allowing themselves to fall in love with a “hot for the moment” investment. Publicly traded REITs found on public exchanges also provide more security than private funds in most cases.
Dividend Paying Stocks
Buying stock in an individual company versus a fund can be a bit risky. However, the return provided by a stock that pays dividends often remains unaffected by the market. This investment is a great option for generating a passive income over the longterm. According to the experts at SoFi Invest, “You can buy stocks in the form of individual equities, mutual funds, exchange-traded funds, and more. Your potential rate of return will differ based on the types of stocks you purchase and how risky they are.” Stocks that pay dividends also provide value to the investor who wants to grow their portfolio by reinvesting dividends they earn.
One metric that will allow individuals to measure the potential volatility of a company is the stock float. The stock float represents the total number of shares that are available for sale or purchase. Stocks with a high float are more predictable and can better withstand increased action of any kind. Low float stocks tend to be reactive and can make large moves in either direction with less instigation.
Growth Stock Funds
Growth stock funds allow investors to minimize the risk they take by spreading the investment over a group of growth stocks instead of rolling the dice on a single company. This investment option works well for beginners and experts alike and is perfect for diversifying a portfolio. Growth stock funds are also good choices for investors that can stand a bit more risk in exchange for a higher return on investment.
The goal of every investor is to enjoy a good return on the money they choose to invest. The four investment options above represent some of the most solid options available.