In the article I’ll tell you about Five Interesting Investing Options. These days there are no shortage of investment options available to consumers, unfortunately many of them never look past the stock market. While stocks can certainly be a profitable investment there are many other options that can be even more profitable. Following are five of the more interesting investment options that you may want to consider adding to your portfolio so that you can get away from putting all of your eggs in one basket.
1. Probably the most interesting investment option currently available to consumers is precious metals. The most common of these are gold but there are actually several others, a lot of people think that silver and platinum are the best places to be right now. The reason that precious metals are considered to be such a good investment option these days is that they are considered to be much safer and less prone to manipulation than things like the stock market.
Over the last few years a lot of people have lost a lot of money on the stock market because of crooked accounting. Obviously this is not an issue with precious metals. The other reason that precious metals have become such a good investment is that there has been a huge increase in demand for them. Modern industry, especially technology makes heavy use of precious metals so it is very likely that the demand for them will remain high for years to come.
2. Another interesting investment option that is available to consumers is private equity funds. This is an option that is really only available to people with large sums of money to invest as the minimum buy in is usually quite high, often in excess of a million dollars. However for the people who can afford to invest it is one of the best investment options available. The idea behind a private equity fund is that it will invest in what is known as a leveraged buyout.
This is a bit of controversial subject since it usually involves ripping apart perfectly good companies but if you are comfortable with it the profits can be quite large. The idea is that the fund will use the money invested as a down payment towards the company that they are buying and then borrow the rest of the money. They will then reorganize the company to make it more profitable and pay back the money they have borrowed out of that. This can be very profitable for the investors with returns of more than twenty percent a year considered to be almost the minimum.
3. Commodity funds can be an interesting investment option for consumers who are looking to reduce their risk to the stock market. In most cases these funds will actively trade on commodity futures, that is gold futures, oil futures and things like that. Most people think of commodities and futures as being high risk investments but this is not necessarily the case. In fact used correctly they can actually lower the risk to which you are being exposed.
One of the big reasons that commodity funds have become so popular in recent years is that they have a very low correlation to the stock market. That is what the stock market does has little impact on the price of commodities. That means that the money that you have invested in a commodity fund is not at risk if the stock market goes down. Certainly you can invest in commodities yourself if you want to but that takes a lot of knowledge and skill. This is why for most investors the best approach is to invest in a commodity fund.
4. One of the more popular options in recent years has become trading currency or forex. This is not really an investment so much as it requires active trading rather than just buying and holding. However since most people use their savings to trade currency it has become a form of investment. The reason for the huge increase in popularity of currency trading is that the internet has make it much easier for people to get the information that they need in order to make trades.
In the past only the banks really had that information and this tended to keep smaller investors out. The advantage that currency trading offers is that it is by far the world’s largest financial market and that means that it has the most opportunities to make money. If you are going to invest in the currency market you have to make sure that you know what you are doing. You can make a lot of money at it but you can also lose a lot very quickly
5. One more interesting investment option that is available to the public are high yield money market accounts. These are accounts that have taken the benefits of the money market and pushed them to the level where large returns can be earned. Traditionally the point of investing in the money market was that it was a place where you could keep your money safe. However over the years fund managers have figured out ways t increase the return that you can get.
The money market is basically any sort of short term security, that is Treasury bills, commercial paper and things like that. The reason that this is considered a safe investment is that since there is such a short time to maturity the risk of default or major changes in interest rates are pretty low.
A traditional money market fund would only invest in high quality paper which is why the returns tended to be quite low. However the high yield funds often include some more risky investments so that they can increase the return. That being said these funds do still tend to be quite safe you just need to be aware that there are risks involved.