Highest Return Investments

High return investments are almost every investor’s dream. Of course, many high return investments carry a certain amount of inherent risk and this risk is especially more with investments that are traditionally poised to deliver the highest returns.

If you ask us, we pick the following high return investments:

Stocks

Corporate stock is essentially your ownership into the company you invest in, and while traditionally stocks were considered high return investments, they do carry a high level of risk as well. For example, the slightest drift in market forces could send your stocks plummeting or spiraling upward. Historically, over a long period of time, stocks do deliver as high return investments but it takes a lot of education, strategy, and investment acumen to achieve this level of performance. Those that have mastered this art are true master investors and are often looked upon as market movers that the rest of the crowd loves to follow.

Mutual funds

Mutual funds, given that they are managed professionally by market-savvy fund managers, are considered by many to be high return investments. While some mutual funds to deliver outstanding performance (by the way, mutual funds are rated and most public mutual funds provide information about their performance publicly).

Although mutual funds give the impression that they are investments with good returns, most do not deliver on that promise given that they do not outperform S&P index, which is a highly diversified index. Furthermore, mutual funds do charge high administration fees.

Real estate

Investing in real estate is also considered as one of the high return investments. This could be true, particularly if you invest from a long term perspective (very long term, sometimes) and if you know the market where you are investing. Investing in the right property can, over a long period of time, appreciate significantly. Not to mention, the potential from rental income.

Leveraged funds

Leveraged funds are a mix of futures, options, and currencies. Historically, leveraged funds have been a mix of high and medium returns. The advantage of leveraged funds, though, is that there is the possibility of working with professional managers who make their income based only on performance. Again, it takes great tact, knowledge, and financial maturity to make money from leveraged funds.

Don’t forget deposits

Essentially, compound interest (interest generated on interest) has the potential of delivering truly highest returns, especially on long term investments. So, CDs with very high interest rates over a long term can prove to be both safe and truly high return investments.

Disclaimer: This article is not intended as investment advice. You must check with a qualified professional before making any investment decision.

{ 1 comment }