Stocks are an excellent option for Americans when it comes to investing. It’s estimated that half of the population has a stake in stocks, and many more are planning to put their money in it. However, stocks aren’t the only option for investing, nor are the other popular forms of investments such as bonds and mutual funds. Other options offer great returns but are lesser known. Here are four unknown investment options that are worth considering.
REITs
Real estate is an industry that most people want to enter, but most don’t have the money to buy a property. However, you no longer need to be a property owner to invest in real estate. A REIT, or Real Estate Investment Trust, is a company that has income-producing real estate. You can buy shares of a REIT just like you would any other stock, and they offer great potential for dividends and appreciation.
A smart way to invest in REITs is by buying an ETF or exchange-traded fund. This will expose you to a basket of REITs, diversifying your investment and reducing risk.
There are many reasons why REITs are such a good investment option. Here are some of them.
It’s a Safe Investment
REITs are a very safe investment, especially if you diversify your portfolio with an ETF. They have a low correlation to the stock market, which means they don’t move in the same direction as stocks. This makes them a great way to diversify your portfolio and reduce risk.
They’re Stable
Another reason REITs are a good investment is that they’re very stable. The real estate market doesn’t fluctuate as much as the stock market, so that you can expect more consistent returns.
They Offer Great Returns
REITs offer investors excellent potential for returns. For example, the average annual return of REITs has been 10% over the past 20 years. That’s significantly higher than the stock market, which has an average yearly return of about 7%.
They’re Tax-Advantaged
REITs also offer tax advantages. The dividends paid by REITs are taxed at a lower rate than other types of income, and they offer investors the ability to defer taxes on their capital gains.
P2P Lending
Peer-to-peer lending is a new way to invest your money and earn great returns. You lend money directly to individuals or businesses rather than investing in a traditional bank loan.
The interest rates on peer-to-peer loans are much higher than those you’ll get from a bank, which means you can earn much higher returns on your investment. And since you’re lending money directly to borrowers, you can choose who you want to lend to and what types of loans you want to invest in.
Peer-to-peer lending is a great way to diversify your investment portfolio and earn higher returns. But it’s important to remember that it’s a more risky investment than other options on this list. That’s because you’re lending money to people who may be unable to repay their loans. So always make sure you diversify your peer-to-peer lending investments and only invest what you can afford to lose.
Commodities
Commodities are another great way to invest your money. A commodity is a physical good that can be bought and sold, such as gold, oil, or corn.
Investing in commodities is a great way to diversify your investment portfolio and hedge against inflation. That’s because commodities tend to go up in value when inflation increases. And since commodities are a physical good, you can see and touch your investment.
The downside of investing in commodities is that they’re very volatile. The prices of commodities can go up and down very quickly, so you need to be careful when investing in them. But if you’re willing to take on the risk, investing in commodities can be a great way to earn high returns. One way to reduce your risk is to invest in management software. Commodities are considered alternative investments, and by getting an alternative investment management software, you can manage your commodities without spending too much time. This can help you focus on other areas of your portfolio.
Private Equities
Private equity is another excellent way to invest your money. Private equity is an investment in a company that’s not publicly traded. That means you can’t buy or sell company shares on the stock market.
Instead, private equity investors own a piece of the company and share its profits and losses. Large institutional investors usually make private equity investments, such as pension funds, insurance companies, and endowments.
But there are ways for individual investors to get involved in private equity. One way is to invest in a private equity fund. It’s a fund that invests in several different private companies. Investing in a fund can diversify your investment and reduce your risk.
Another way to invest in private equity is to invest directly in a private company. This is a more risky investment than investing in a fund, but it can also offer higher returns.
If you’re thinking about investing in private equity, it’s essential to do your research and understand the risks. But if you’re willing to take on the risk, private equity can be a great way to earn high returns.
These are investment options that you might have missed out on. These are great options if you want to be creative with your investments and diversify your portfolio.