Most of the investors focus on investments that can reap high benefits for them without the risk of losing principal money. This is why the financial advisors work to find the top investment plans for their clients, where they can reap maximum benefits with little or no risk. It is important that an investment plan match your profile so that you do not make any poor decisions in the hope of high profits. Here are the top investment ideas to explore in 2020 that will help you to reach your financial goals.
Compared to all the asset classes, direct equity has been able to deliver higher than inflation-adjusted returns on the long term basis. Investing in direct equity rather than stocks might be a profitable option for you once you consult with your advisor.
Equity mutual funds
Equity mutual funds can also be a great option for investment if you want to benefit from equity stocks. You can manage the equity fund actively or passively with the help of a financial advisor.
High-yield savings accounts
The high-yield savings accounts can be one of the easiest ways for you to earn extra interest on your savings. Some of the accounts may be paying as much as 1.5% on your savings. Savings accounts are also liquid, which means you can take out money any time you want.
Money market accounts
Money market accounts can earn higher interest than savings accounts but require a higher minimum balance. They are relatively liquid and earn higher yields which makes them a great option for your emergency savings.
There are plenty of securities available to raise money for projects and pay for its debts. There are some treasury bills, aka T-bills that can mature in a year or less. They are sold at a discount on their face value, and when they mature, the government pays you the full face value.
Government bond funds
Government bond funds are also mutual funds that invest in debt securities that are issued by the US government. The funds invest in debt options like T-bills, T-bonds, T-notes. This bond funds share high liquidity and can fluctuate depending on the interest rate environment.
Rental housing is a great way to invest your money day as the need for properties will only grow. Find the right properties that you can purchase or finance it. Take responsibility for its maintenance, and deal with tenants to pay you every month. If you need more cash in less time, the housing may not be the best option for you, but if you want constant income, you can use this idea to invest in other things.