The number one rule for investing effectively is ensuring that you always spread your risk. Having all of your eggs in one basket increases the risk to your hard earned cash.
Instead, you need to think about having your finger in as many financial pies as humanly possible. By spreading your risk across an investment portfolio, you are adding a level of mitigation should one investment fail,
This also means that you can opt for some higher risk options to try your luck and maximizing your returns. Follow this guide and look at three stunning investments to get the biggest bang for your buck.
Property
The easiest option to look at when investing is property. Fixer uppers come onto the market regularly and you could head to a property auction in an effort to find the worst house on the best street.
By undertaking a scheme of works, you could create a desirable home in a great location with awesome transport links, low crime rates, and decent schools. Do your sims to ensure that the purchase price for the dwelling plus the taxes and fees, plus the renovation costs do not creep above the price you want to sell for.
If flipping a pad, you want to add floor space to increase value and enhance the ceiling price of a street. Property is an easier low risk investment but does require you to be active in the money making project.
Eco-Friendly Options
If you are keen to do your bit to save the planet and you want to check out some sustainable investments, take a look at the energy industry market forecasts. Look at those car manufacturers that are actively pursuing greener fuelled cars.
These ranges will soon be the go-to models of choice for the savvy millennial who cares about their carbon footprint. As more government legislation and laws come into force regarding pollution, investing in the stocks and shares of a hybrid car company could be a great bet.
Alternatively, invest in those food producers, manufacturers and local small businesses who pride themselves n sustainability and ethics.
Wine
If you are partial to a tipple of your favorite rioja every now and then, why not consider a bigger investment in wine? Purchase a crate or two of a sought after vintage, store it for a decade or more, and then sell it to a collector at a lucrative profit.
Think of wine in the same way you think of art or antiques. The rarer these wine examples become, the more valuable they are. Do your research and spend your money on classic vintage labels such as a 1999 Italian shiraz or a 2013 Australian Pinot Grigio.
With any luck, you can monitor the markets and sell on when you have a decent enough return. You could then reinvest or pocket the cash to top up your savings pot.
Investing can be exciting but also daunting. Follow this simple guide and you could maximize your investment returns in 2021.