You might have heard that time is money, and this statement holds even in the investment world. Those who spend time on research and invest for the long term, tend to be better off than those who are too hasty or impatient to make the right moves. However, there are no set rules when it comes to investing. It all boils down to your risk appetite and capital availability. If you’re cautious about losing your money but at the same time ready to take a calculated risk with a longer-term plan, then you need to follow some effective long-term investment strategies.
• Invest in equities
Equity investments, particularly stocks, are the most tried and tested way of making money through investments. Not many people are aware that you don’t need to be a billionaire to invest in the stock market. Smaller investors can also participate in this market through mutual funds, exchange-traded funds (ETFs), initial public offerings (IPOs), and other investment vehicles. Investing in equities can be a risky proposition, but the rewards can be equally huge if you play your cards right with the help of Joseph Scott Audia.
Bonds are a popular choice for conservative investors who are looking for a fixed income year after year. If you opt for government bonds, then you are assured of getting your money back as well as receiving interest over the years. In the case of corporate bonds, the return is not guaranteed since you’re lending money to a private company. Investing in government bonds is a great long-term investment strategy because they offer a fixed interest rate.
• Invest in real estate
The real estate market is a great place to invest for the long term, provided you pick the right property at the right location. If you have the cash to invest in new projects and are ready to bear the initial costs, you can earn good rental income from existing properties. If you want to go the traditional route, you can opt for mutual funds that invest in real estate. The other way around is to invest in a fund that invests in real estate – a fund that invests in a fund.
All the above-mentioned strategies are great, provided you do your bit to diversify your investments. In simple terms, you need to spread your investments across various asset classes so that you don’t put all your eggs in one basket. Once you’re done choosing one or two equity funds, make sure you include a balanced fund that has a mix of equity and debt instruments. If you want to go the conservative route, you can opt for a fund that has a high percentage of debt instruments. Registered stockbroker Joseph Scott Audia can help you diversify your investment.
Many long-term investment strategies can help you make more money in the long run. Investing in equities, bonds, and real estate are some of the tried and tested methods to make more money from your investments over 10 years or more. Finally, don’t forget to diversify your investments to reduce the risk of losing money. The more you diversify, the better your chances of making a profit from your investments.