Investing remains a goal to many people but for a reason or another, they hardly actualize it. It is said that people ought to invest in things they understand. That is true, but what happens to cases where one is relatively novice on where to put his or her money? Value Galactica points to you key areas you could be looking at to have your money grow. If you give the following six areas keen interest and invest wisely either by yourself, through a reputable professional or institution, you are bound to make bank over time.
Investing in stocks is ideally buying a piece of a company. You could buy and hold the investment for the medium or long term. Stock investing requires a level of insight on the company which you choose to buy into. You ought to understand the business that company is into, the management’s professionalism and integrity, and importantly the company’s long term outlook. For instance, in Kenya, you can grade Safaricom along the basic lines I have shared. The same can be replicated to Microsoft and Tesla on the global scale.
Real Estate is a traditional form of investment that will keep increasing in value over the years as long as the human populace is existent and continues to increase. There are three types or real estate that require a fair level of understanding for one to venture. These are; Commercial, Residential and Land.
Commercial Real Estate includes office buildings, retail and wholesale centers, industrial centers and hotels.
Residential Real Estate includes apartments, gated communities and areas where people go to for their housing needs.
Land could be purchased for commercial or residential purposes. This is mostly determined by the location of land. Land can also use for agricultural, warehousing and other industrial purposes such as harboring solar panel plants or wind turbines. You can as well have land for small scale needs or just buy and hold then cash out after years.
Bonds are debts given by individuals to companies or governments. Government bonds are mostly risk free and guarantee their returns to clients. Debts given to companies are referred to as commercial papers and inherently have a level of risk with them. Notably, certain companies have defaulted on their debts to clients such as Ever Grande in China, some Kenyan Real Estate companies alongside other companies around the world. It is critical that you as an investor looks at the ability of a company to keep its end of the bargain which is returning your principle and interest.
Mutual and Index Funds
Mutual and Index funds provide a balanced pool of stocks that shield an investor from economic shocks and extreme downturns of single companies. Examples include the S&P 500 that tracks the top 500 companies in USA, and Vanguard Mutual Funds. Talk to your financial advisor, bank or insurance contact for more detail on this. They will be able to advise you with respect to your goals.
As basic as it sounds, equipment have a fair value of return to their owners. Roads need to be built, the same is with buildings, farm lands need to be toiled and many more of such like examples. Having equipment in one of the niches is a good investment that will bring in money to your accounts.
Brand and Goodwill
Building a brand and goodwill are arguably not the easiest of ventures I would recommend but if you have the time and vigor, they might get you big bucks over time. When your company has grown well enough to identify as a brand and people have an undeniable liking and following towards it, then you are in for a great cash out whenever you are ready.
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