There is always an investment push pull when it comes to safety and growth. Though safety does offer protection of the principal, there’s nothing much for the future possibilities. The truth is that in today’s interest rate, the safe investments may lose money during an inflation. It is where the growth will become necessary. There are risks but that’s part of it. However, for the long term investments there will come a time that the risks will be taken over and the money growth will be more than the investment.
Why Should Long Term Investment Be Your Option?
If short term investment is just about preserving your capital, Long term investment is about improving your status in life and making you live a money free life. It is merely about building the kind of investment portfolio that will give you the best source of fund later on in life. It could also be your source of retirement fund. But by making an amount of wealth is important to give the level of income that you truly need to live a comfortable life.
A long term investment is about getting the right amount of risk with regards to the higher amount of money you’ll get. This is about the equity kind of investment such as real estate and even stocks. These are some of the best in terms of long term investments since the possibilities for the capital appreciation is quite higher. You have to keep in mind that a security that’s bearing interest can also get a few percentage of points gain every year. However, the capital appreciation can get double digit returns and even lead to the rising portfolio several times in the future. There is nothing to worry about if you are not good in this field because you can easily learn how to invest and make the most out of your money. You can join a share market training or share trading course if you’re interested.
Types of Investments With the Best Possible Returns
Stocks are the initial long term investment because of the advantages that you can get from it. You can opt for a paper investment wherein you will not manage a property or a business. You can also represent an ownership in companies that generates profits. The stocks can also rise in value, oftentimes it dramatically become valuable over time. You can also get dividends from stocks thus giving you a regular income. Most of the stocks can be liquidize which means you can buy and sell them too.
- Long term bonds
Long term bonds are also known as interest bearing securities with the terms that are more than 10 years. One of the most recurrent terms are more than twenty years to thirty years. There are various kinds of bonds and that includes government, international, corporate and others. Because these bonds are long term in nature, they pay higher yields than shorter term interest bearing securities.
- Mutual funds
Mutual funds can be categorized under the actively managed funds. It simply means that the purpose of the fun is not to match the market index but to exceed it.