Rabu, 14 Desember 2011


With surplus cash ready to be invested, one is bound to look out for options which can provide the best investment returns. Economic markets are constantly in flux and there are no absolute investment options that can always guarantee high returns. New opportunities are constantly created in the market and those who have the audacity to recognize them, stand to be the winners.

Financial Instruments Offering the Best Returns

High return investments are intrinsically linked with a great degree of risk. So if somebody promises to offer you substantially high returns at almost no risk, you have a right to be skeptical. Let us see what are the investments which can provide you with a high amount of returns.

Stock & Bond Investment
Investing in US and overseas stocks remains one of the best high return generating investments. European, North American and Asian markets are slowly recovering from the economic downturn of past years and the picture is bullish again. Indian and Chinese stock markets remain hot investment destinations currently. Look at stocks as ownership investments in a business and don't rely on just speculation to make your decisions. You are bound to generate high returns with a value investing approach, rather than a speculation based approach. Bond investment is another high return option, though it comes with a substantial amount of risk, like stocks.

Mutual Fund Investment
Mutual funds with diversified investment portfolios are alternatives that can provide you with high returns. Look for funds with a good overall track record and proven fund managers who have always delivered in the past.

Investing In Gold
Gold is and will always remain one of the best high return investment options. Gold and other rare metal prices are constantly on the rise. You are guaranteed with sizable returns, if you put your money into gold and other metals like silver. Real estate and hedge funds are some of the other investments with high returns.

How to Maximize Return From Investments

To tell you the truth, there is no one way of getting guaranteed high returns on any one type of investment, with one set strategy. The key to gaining high returns on investments, over the long term is to learn to change with time and adapt your strategy according to market conditions and diversify as much as possible.

Distribute your cash over a wide range of investment options, rather than putting all your eggs in the same basket. Shift your cash into low risk investments like IRAs, 401(k) accounts or certificates of deposit, when investment in securities like stocks and bonds is too risky due to bear markets. Pool your money back into securities when you see bullish opportunities. For your wealth to grow at a steady rate, whatever profit you gain from your investments, should be directed towards better income generating opportunities. To really understand the art of generating consistently high returns, study the investment strategies of great investors like Warren Buffett.

Stock and bond investments continue to provide the best returns to people who are smart enough to negotiate the risk involved. However, volatility is the hallmark of stock market investing and those who can make decisions based on cold logic, without letting emotions and temptations corrode their thinking, stand to gain in the long run. As discussed previously, you need to learn how to profit from stock market follies and base your investment decisions on studying the balance sheets of companies you are investing in, rather than relying on speculation.

Investing in metals and especially gold remains another investment which can guarantee the best returns in the long run. Understand and remember that high returns always come at a high degree of risk and unless you have the ability of negotiating that risk, putting your money in high risk options is not advisable. Don't fall for the hype and speculation while making investment decisions and spread out your investment money over a range of options to minimize risk and maximize gain!

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