5 Investments to grow your money

Everyone enjoys seeing their money grow, however managing your money effectively can be quite difficult. Fortunately there are several options for investing your money, ranging from property to buying stocks or simply getting the right type of bank account.

We discovered 5 investments to grow your money.

1. Stocks
One of the most popular investments to make is to buy stocks. When you buy stocks, you essentially buy shares in a company. If the company does well, the value of your shares will increase, which means you can sell it and make a profit or leave it to grow. Many companies also “reward” those who own shares in their company by paying a dividend regularly, which is determined according to the number of shares you hold. Good advice is always to look to buy a stock for less than its intrinsic value so that you can maximise your returns. Likewise, don’t only buy stocks in one company but diversify your portfolio. You might like to get a professional to manage your portfolio and help you to make sound investments.

 
2. Property
Investing in property has traditionally been a good investment. However, in times of crisis, the property market might suffer so carefully consider whether it’s a seller’s or buyer’s market at the time when you want to invest. When you invest in property, decide if you want property for private or commercial use and whether you intend on renting it out. Also consider what the expenses and maintenance would cost you and whether the property’s value will increase over time. The area that you are investing in is also important so lookout for infrastructure within the area such as schools, train stations and shopping centres.

3. Bonds
Bonds have become quite popular investment options in recent years. When you invest in bonds, you are effectively lending money to a company or a government institution. The money you lend will be tied away for a certain amount of time, however you will receive an interest rate that you agreed upon while your money is used. Your money will be paid back in full at the end of the agreement, unless you choose to invest it for longer. If you want to diversify your portfolio, investing in bonds could be a good investment option.

4. Annuities
You might like to invest in annuities to grow your money. Annuities are paid to an investor after they invested a lump-sum of money. In return, the investor gets a fixed interest rate paid to them on a monthly basis. The advantage is that the interest rate is fixed, meaning you are guaranteed an amount of money every month. Annuities are quite low risk investments and it’s almost certain that your money will increase. With annuities you can ask for your lump-sum back at any time, however if it is before the agreed period, you might not receive the original amount back.

5. Fixed deposit
A simple option for growing your money is to open a fixed deposit account. A fixed deposit, or term deposit, is a type of bank account that gives a much higher interest rate than other types of accounts. However, a fixed deposit tends to require you to place a minimum amount of money in the account and there is usually a time constraint involved where you may not withdraw any money. However, a fixed deposit is considered one of the safest investments to make and, although your money won’t grow as rapidly as with other investment options, it will grow steadily over time.

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