Investments and other similar forms of income streams are a bit tricky. For instance, real estate has always been considered a good and solid investment. However, a little over 10 years ago, due to recession, the real estate market went in a slump.It has since recovered and property values are once again starting to appreciate while inventories are down. Lending standards have eased and DST investments are a preferred investment avenue 1031 exchange investments. (Image Credit: Arek Socha/ Pixabay)
Any investment has pros and cons. It’s just a matter of managing your investments by doing your research and making well-informed decisions.
Investment Ideas and Themes for the Year 2020
Midcap Equity Funds
With midcap stocks undergoing some correction in the past year, midcap equity funds are economically-priced at the moment making it a good investment option. The P/E ratio discount of midcap to large caps is at its highest in seven years making its upside very attractive to investors today.
Consider midcap equity funds, especially those with a three-year time frame, as a short-term mutual fund scheme is more effective because of its higher yields in contrast with fixed deposits.
Gold and Other Precious Metals
Experts agree that gold and other precious metals should make up about 10% of your investment portfolio, even though a lot of people say it is an obsolete form of investment. Its long-term benefit is generating healthier returns in investment on top of the diversification it brings to your portfolio.
Gold stands out among precious metals this year. It ended the year 2019 with an upward movement and appears to hold its momentum at a steady pace.
Unit Linked Insurance Plans
Unit Linked Insurance Plans(ULIPs) allow you to combine investment instrument benefits with an insurance cover. It has low-cost availability, tax-free withdrawal, structuring liquidity, and convenience in fund-switching.
Since withdrawals are tax-free, they don’t attract any capital gains taxes. The ease in switching funds allows you to strategize and alter your investment based on your investment goals and the market dynamics.
Money Market Accounts
Though they require higher balances, money market accounts typically earn more than regular savings accounts. Since they are more liquid and get higher yields, they are a great way to save for your emergency funds.
Why is this part of the list? Money market accounts are great for starting investors who wish to establish a better cash flow and work on an emergency fund.
Exchange-Traded Fund(ETF)is a type of pooled-investment fund made of different securities that trade on an exchange, similar to a stock. It contains all types of investments which include stocks, bonds, and commodities, with some offering U.S.-only holdings while others have international options.
Why invest in ETFs? It has access to many stocks in various industries, offers low-expense ratios with fewer broker commissions, and risks are minimized due to diversification.
Every new year brings with it the promise of much growth and plenty of opportunities. Start the new year – and decade – right for yourself and your loved ones by securing your future by choosing the right investment that will serve you in the long haul.