Investing has always been, and will always remain, a risky business, but for those with money to spare it can be an exciting and thrilling way to dramatically increase your capital.
Here are some of the most innovative ways to invest your money…
The Bond Market
The bond market poses a much lower risk than many other investment options, but that also means there’s less likelihood of high returns. Bonds tend to deliver a stable, steady return on your capital, delivering regular interest on their value as well as the return of the principal investment. Although reliable, they’re unlikely to make you rich.
Only those willing to take risks should enter the stock market. It offers the opportunity to invest in companies, gold, oil and the like, with the intention of selling the shares you buy at a higher price than you originally purchased them for. Although significant profits can be made when things go according to plan, devastating losses are just as common, so you should only ever invest money that you can afford to lose.
The concept behind private equity is similar to that behind the stock market, with the exception that shares are bought directly from the owner of a company rather than on the exchange.
The Forex Market
The forex market is one of the most high-risk in the world. The workings of the Forex market may be difficult for newbies to understand, but in its most stripped back form the intention is to buy one currency against the value of another in the hopes of making a profit. Some people grow rich in a day; others lose everything. Unpredictable, high-risk and unstable, forex trading is not to be taken lightly.
The Derivatives Market
The derivatives market is difficult to understand, functioning as it does on the basis of futures and stock options. It trades the ‘right’ to purchase stock via contract or other future prospects.
The spot market encompasses a range of the markets mentioned above, such as stocks/commodities. The difference between this and the former is that transactions are executed immediately and purchases are received instantly.
General Investment Options
General investment options offer the chance to sink capital into a wide choice of markets and types of investment through a single platform. They tend to be run by financial enterprises such as James Hay Partnership. They allow the investor to put money into an attached cash account, with the money available to be invested across the markets.
Your level of skill should determine the way that you choose to invest, along with your attitude to risk and the amount of money you have to lose. You must always remember that although you could make fortunes, you could lose it all too. Choose to invest at your peril.