There are many investment options in the market today. The choice would depend on your attitude towards risk and the amount that you are willing to invest. If you are averse to risk, you can choose safe instruments that can give you a steady stream of small income over the long run. If you are a risk taker , with a large amount of investible funds, and can handle volatile swings in the financial markets, then high yield investments may be worth considering.
High yielding investments are attractive to most investors; but, they also equate to higher risks. It is sometimes better to play it safe and invest in moderate yielding investment plans with moderate returns, than aim for the stars and end up losing your shirt in the process. The best choice is to find a high yield investment with low risk, which is most often difficult to find.
To protect your investment, it would be wise to do a thorough study and research before plunging in. A prudent investor must be able to manage his investments well. He must be aware of the factors that may affect his future returns, and knows how to react when it happens.
Some of the high yield investment instruments that you may consider are:
- Convertible bonds
These financial instruments pay interest regularly and can be converted into stocks when stock price increases. Even if you do not convert, the price of the bonds will still follow price increases in the stock market.
- Stock with Dividend Payouts
Investments in blue chip stocks that pay regular dividends are often considered as high yielding. It is a safe investment with an assurance of regular dividend payout each time.
- Stock Options
Investing in stock options can provide higher earnings than stocks. Options are used as leverage over the stocks. It is easy to buy and the slightest movement in stock prices can give you high returns.
The Bottom Line
Investing is a personal choice. It is geared towards long term goals of reaping rewards. Finding high yielding investments is not easy. It is always advisable for you to know the market well, have a clear understanding of the different financial instruments, and to seek expert advice from professional traders to help you get started.
Artikulo49-Musings from the Inang Bayan
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