After spending many years saving a portion of the regular income, now you are considering to venture on a long term investment that will give higher returns for a retirement fund or buying a dream property for a perfect vacation destination, but you do not know where to start.
The options for long term investment can be overwhelming, especially if we do not have enough knowledge in the different investment sectors. One way to stay informed is to subscribe to newsletters, such as with KPMG institutes. KPMG does provide not only articles but also online webinars and podcasts that can be viewed anywhere.
Below are a few long-term investment options in the area of stocks, real estate, mutual funds, and Robo-adviser. Different choices provide different opportunities for future profit. Although it is a fact that the economy and the market fluctuate, one must be willing to ride the volatility in the market in anticipation of profitable returns after a more extended period.
Stocks is an equity investment where the money is used to purchase shares of stocks of a company with a value at a given time. A broker company or agent authorized by stock exchange (like NYSE) is required to facilitate the purchase with specific fees.
Stocks are one of the best long-term investment options, especially if the entry is timed perfectly with the market trends. Netflix, for example, has grown since 2010 at more than 3700 percent outperforming the SP500, which is only at 185%. A USD 5,000 invested in Netflix from 2010 would have a value of USD 185,000 today.
Growing your money over time in the stock market is highly regarded as one of the advantages of choosing stocks as an investment portfolio. Selecting a stable company that provides a steady growth or selecting a new market trend like Netflix in 2010, can give you the best return of investment.
Real estate investment is the oldest form of capitalizing a particular property with a small initial payment and using the income generated by the property to pay off the mortgage. Others would look at city development plans and will purchase cheap land in the vicinity of the future development that will appreciate as urbanization reach the area of acquisition.
Urbanization could take decades, but the returns on the land acquisition will be substantial, especially if the areas are developed as commercial properties. A mid-term strategy of using the land for farming or warehousing can be a perfect complement while waiting for the development.
Mutual funds are basically investments in equity funds like the stock market, bonds or fixed-income funds, and money market funds. A mutual fund company may offer a hybrid portfolio that mixed funds from stocks and bonds as strategic moves that offer conservative and high return investment.
Mutual Fund Company gets very innovative in the portfolio package of a mutual fund, not only mixing different funds for high return but also offering benefits such as accident insurance, critical illness, and some even hospitalization or disabilities.
Investing in mutual funds in the stock market is ideal for young investors that can afford to ride the volatility of the market. Although stocks carry a higher risk, the rewards are also great. Bonds with fixed interest is ideal for an older investor that requires a steady and guaranteed return.
Computerization and the development of artificial intelligence will pave the way for Robo-advisor. The system is designed and built by brilliant humans to facilitate fast and secure transactions for anyone to invest without any basic knowledge of the financial marketplace.
Robo-advisor is an automated system run by a computer algorithm that decides on the investment strategy with minimal human intervention. This is the best option for someone that does not have to spend time to know about the financial market. What is needed is to define the financial goals, and the Robo-advisor provides the recommendations.
Management of the portfolio becomes simple for any non-technical person by the aid of mobile application and simple survey questions about the financial targets, personal information, and value of the investment, then the Robo-advisor can generate different options of investments.
It is crucial to have an informed decision when investing. By subscribing to KPMG institutes, you will be able to enjoy a vast amount of resources from articles, webinars, podcasts, or attending events. KPMG provides different insights like Tax, Manufacturing, or Energy that can help in learning trends and future forecast to help investment decisions.
If challenged by time to learn, the option of a Robo-advisor is the perfect approach to enter into an investment market. Or knowing someone selling their property at a very low price due to financial situations or needs can also be an excellent opportunity to invest if one has the funds.
The future of regular paying jobs, businesses, or significant family funds may not be there for the future needs of a person or his family. One must consider investing in the long term to keep the money in a place that cannot be easily spent.