Investments with High Returns

If you are looking for investments with high returns, be prepared to take the risks! Almost all high yielding investments can amount to be very risky - that's one rule of the financial markets that all investors should be aware of! So, for all those people whose sole aim is to grow their money manifold, by making some lucrative investments, suggested below are some of the best ones.

Developing Countries
An investment in developing countries like India, Brazil and South Africa, can yield some very good returns. These developing countries, in order to attract investments from richer countries, are ready to pay very high rate of returns. This makes investing in markets and companies located in such countries, one of the best investments. On the flip side, however, there is always a lot of risk involved. Since these markets are still in their growth phase, one can not really predict whether they will remain as lucrative as they seem at present. So, although, it seems that these new, emerging markets are high yielding investments, yet, they can prove to be very risky as well in the future.

Stock Markets
For those of you looking for short term investments, a good idea is to invest in the stock market. When it comes to investing in the stock market, diversification i.e. investing in a variety of sectors and companies is the key. Looking at the current trends, green/alternate energy companies, healthcare companies, information technology firms, education sector and infrastructure companies are doing very well, so you can invest in them. One caution - stock market investments can prove to be very risky, especially now, when the economy is still reeling under the effects of the economic downturn!

Real Estate
This investment can prove to be high yielding for those who have the required funds to hold on to their investments, till the market picks up. As is common knowledge, real estate sector is not doing well at the moment. No one is willing to buy properties and many have had to give up on their property investments due to the inability to pay EMIs of bank loans. Due to these very reasons, there is a surplus of unsold properties in the market, which have pushed down the rates to a large extent. Looking at the lower rates, one can invest in property right now, then wait for the sector to pick up and finally, sell the property at a much higher rate, to make some serious profits out of the investment.

Gold
Gold can prove to be quite lucrative in the long run. Gold coins, gold bars, exchange trade funds - invest in gold in any form, buy when the rates hit rock bottom, sell when they peak and you are sure to earn some high rate of return!

Hedge Funds
Hedge funds work on almost the same principles as mutual funds, the major difference being that they are not regulated by the securities and exchange commission. This means that the money managers, who are handling the investor's money in hedge funds, can invest it in any instrument, at any time, which they think will prove to be high yielding. So, a money manager can move assets quickly and invest in anything, right from stocks to mutual funds to gold to real estate. On the positive side, if the investments work, the investors can look forward to earn a lot through hedge funds. On the flip side, one bad decision and the investors can lose their entire initial investment!

Bonds
Bonds, both that are issued by the government as well as the corporates, make for low risk investments with high returns. By issuing bonds, large corporations take loans from the public to further expand their business. Whether the corporates make profits or losses with the investor's money, they are assured of a fixed rate of return on their investments. Treasury bonds that are issued by the government work on the same principle too, their duration may however vary from seven years to thirty years. Usually, the return on these safe investments can be anywhere up to six percent or so.

These investments can yield even more profits, if they are made at the right time and sold at the perfect time too! To minimize the risks associated with such investments, it is advised that you hire the services of a professional investment adviser.