There is no lack of investment opportunities today. You can easily find a vehicle that can help you in making money. A savings account is the simplest option to explore, but obviously, it will not offer you very high returns. You can find plenty of bigger and better opportunities, as long as you are willing to tap into them. Everyone can find something to invest in, regardless of their risk tolerance, their knowledge of investments, or their outlook for the future. Shay Benhamou recommends some of the top investment opportunities you can explore for achieving your goals. You can check them out below:
One of the simplest investment opportunities that people can understand is stocks. Buying shares of a publicly traded company means you are buying a piece of its future success or failure. When the price rises, you make money and you lose it when it goes down. However, Shay Benhamou highlights that stocks can also get complicated. You don’t have to make money by selling a stock for a price higher than what you paid for. You can use other stock investment strategies, such as dividend investing, value investing and growth investing.
When you are interested in investing in stocks, but you are unsure of which companies to choose, Shay Benhamou recommends that you consider exchange-traded funds (ETFs). It offers you the chance to own stocks without having to select them individually. ETFs use a ‘basket’ approach, which means you are investing in a collection of companies. You are essentially getting fractional shares of every company via the fund vehicle. The only decision you have to make is about the market, sector and strategy you want to invest in. Plus, you will find ETFs to be incredibly tax and cost-efficient.
Shay Benhamou and every other expert will tell you that real estate is the one of the best investment opportunities out there, since there is a finite amount of it. In addition, it also has tangible value and there are a number of ways you can invest in real estate. You can purchase a run-down property, fix it up and then flip it for earning a quick profit. You can also purchase rental property and benefit from the equity while someone else pays for the mortgage. Just like other markets, real estate also has cycles and if you get in the right time, you can reach the top of the cycle through a property investment and then sell.
It is understood that the more capital you invest, the more returns you can make. Unfortunately, not everyone has a massive amount of money to invest. Most people have just a few thousand dollars available. This is where Shay Benhamou suggests that you go for mutual funds. This is when the capital of many people is pooled together and invested in a lump sum. You only have to pay a small amount and you will be part of a huge portfolio that’s well-managed and diversified. Moreover, if every member of the mutual fund makes a regular contribution, the earnings will also grow consistently. It is an excellent way to earn through your investment.
P2P (peer-to-peer) lending is considered an excellent alternative to loans from traditional financial institutions like banks. This is where borrowers reach out to individual lenders for raising capital in small, incremental amounts. As Shay Benhamou highlights, this is a great investment vehicle because you can become a lender and can charge whatever interest you want on the amount of money you loan. This will help you in getting your initial investment back during the repayment period, as well as interest. Add in fees for missed and late payments and you can make substantial returns from your investment. But, you need to evaluate every lending opportunity because risk and rewards can vary and you need to take this into account.