3 Forward-Thinking Investments to Consider

The world of investing has historically appeared intimidating to beginners, but it’s only grown even more so with time. As new types of assets and investment activities emerge, and with them more technical jargon to keep up with, it can be difficult for novice investors to even figure out where to begin. Reading up on the basic principles of investment and the differences between existing asset classes, however, is always a good place to start and can help a new investor realize significant gains in the long haul.

In general, the most common advice given to beginning investors is to start by making a few simple investments first and then diversify their portfolios gradually. Putting some money behind a variety of assets is usually encouraged, as it’s possible for gains in one area to make up for losses in another in the long run. The mix of assets in a portfolio will generally reflect the holder’s appetite for risk, as certain assets are more naturally stable while others can be more volatile.

Here’s a look at 3 promising assets you may want to consider putting some of your hard-earned money behind in the near to distant future:

Cryptocurrency

Cryptocurrencies have become something of a hot topic in the business world recently, as many of the largest digital currencies in the world experienced record-breaking highs and equally historic lows in 2021 alone. The world of altcoins, or alternatives to the current leading cryptocurrency Bitcoin, is also expanding, with developers around the world coming out with new crypto projects at a breakneck pace. At present, there are thousands of cryptocurrency projects available for crypto enthusiasts to invest in, and more are coming out from month to month.

Most crypto traders will look at the particular purpose or goals of a cryptocurrency project when it comes to deciding which coins to invest in. Certain cryptocurrencies, for example, are presented as alternatives to traditional currencies like the pound or the US dollar. Others aim to create new financial applications, such as the privacy-focused coin Monero (XMR). Monero aims to enable fully secure, untrackable, anonymized transactions between any two parties anywhere in the world, provided they each have access to the internet and a specially encrypted XMR wallet to facilitate the exchanges.

While cryptocurrency remains a young and highly speculative investment at present, one thing’s for certain: its rapid development and mounting popularity make it an exciting asset to hold and observe over the long term. Those interested in investing in crypto can do so safely by doing intensive preliminary research on the market and allocating their money conservatively toward a few crypto projects they wish to support.

Mutual Funds

Mutual funds frequently come as a highly recommended starting point for many newcomers to the investing world. In a mutual fund, multiple investors pool their cash together to purchase securities such as stocks, bonds, and other assets. Most mutual funds are overseen by portfolio managers who allocate and distribute the pooled funds between different investment products. Investing even a small amount of money into a mutual fund is a fast and easy way to gain exposure to the many different stocks the fund’s portfolio contains.

Mutual funds offer investors a convenient and relatively inexpensive way to spread their money across a range of investments and, thereby, hedge against any single asset’s losses. Experts generally also agree that mutual funds are advantageous for investors saving toward retirement or other long-term financial goals. This is because mutual funds allow investors to access and take advantage of the superior investment returns the stock market offers without having to manage a portfolio of individually purchased stocks.

Real Estate

Real estate investments are good for investors with healthy investment portfolios who’d like to diversify their assets even further. This is also a viable option for those who wish to chase high returns at the expense of taking on some financial risk. Traditionally, people invest in real estate by buying commercial or residential property and reselling it for a profit later on. Property owners may also elect to rent out commercial or residential spaces they own as a form of fixed income.

Another, less hands-on way to invest in real estate is to buy shares in a real estate investment trust (REIT). REITs are organizations that own income-generating properties such as offices, hotels, shopping malls, and the like and offer investors regular dividend payments. Real estate crowdfunding platforms, which pool together investors’ money to support particular real estate projects, have also become increasingly popular over the last few years.

Investors particularly interested in these newer methods of real estate investing would do well to note that certain crowdfunding platforms are open to accredited investors only, while others allow anyone to invest. Similarly, while it’s possible to purchase certain REITs on the public stock market via an online stockbroker, others are only available for purchase in private markets.

Whether you’re a veteran investor or a relative neophyte, it’s always good to bear in mind that the investment landscape is dynamic and constantly changing. Hence, continuous investment education is essential for figuring out the best ways to grow your money over time.

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