On this blog, we gave you a simple overview of five investment products. We also provided the salient features of each product, the risks involved in them, and some of the key benefits they offer. Here are Top 5 Investment Products that Generates More Than 15-20% Annualized Returns.
1. Stocks
Stocks are shares of a company. A company is an organization that makes and sells things.
When you buy stocks, you own part of that company. You can sell your stocks and get money, or you can let others pay you interest on the money you hold.
You can sell all of your stocks right away, or you can wait and sell them later. In any case, you have the option of getting dividends as long as the company is in business. Dividends are cash payments that the company makes you when it earns extra money.
2. Bonds
Bonds are a form of debt security. It is a debt instrument issued by a government or corporation. When you buy bonds, you loan your money to a company. If you buy government bonds, you will own a portion of the federal government.
If you buy corporate bonds, you will own a portion of a company. The bonds are usually sold at prices that are higher than the current market value of the company. You will get the income from the bond and repay the debt with interest.
As long as the company continues to operate, you will get the interest payment. You can use the bonds as a way to raise capital for your business.
If you buy corporate bonds, you will be able to get the interest payments. These payments will help your company to stay in business.
3. Mutual Funds
Mutual Funds are the funds which are owned by many people. They are considered like stocks and bonds, except that they are not traded.
They are held in trust by investment firms that manage the funds. These investment firms sell the bonds in the public market at the time when the fund is established.
There are different types of mutual funds. Each one of these funds has its own type of securities. There are equity funds, bond funds, etc. These funds are managed by investment experts.
These experts know what they are doing and they can make sure that you get the highest returns when you invest. Mutual funds are a good way for someone to invest in bonds. It’s not the only way, but it’s one of the ways.
4. Exchange-Traded Funds (ETF’s)
Exchange traded funds (ETF’S) are financial instruments that resemble mutual funds. ETFs are combined investments of stocks and bonds.
These funds are actively managed. They are managed by highly qualified portfolio managers, who analyze the market and develop their own trading strategies.
ETFs are very flexible. Anyone can purchase ETFs on the exchanges. You can buy them directly from the broker/dealer or on the Internet. ETFs allow investors to buy securities quickly and efficiently.
One of the best things about ETFs is the ability to control and manage risk. By investing in a specific basket of stocks or bonds, ETFs are like owning a piece of the stock market.
5. Annuities
Annuities are among the safest and most stable investment vehicles available today. A few investment companies offer annuities.
Annuities are contracts that make regular payments to individuals over a specified period of time in exchange for an initial lump sum payment.
Annuities are used to provide an income for a person for life or as long as a specified asset lasts.
If you’re purchasing an immediate-pay or extended-pay annuity, the duration of your payments will depend on what type of annuity you purchase.
An annuity is a contract between an insurer and an individual to pay out a set amount of money at a future date. Annuities may be fixed, variable or indexed.
CONCLUSION
The list above contains some very interesting investment ideas. But, if you are new to investing in the stock market, don’t go into it expecting to make a ton of money.
There are a lot of risks involved, and if something goes wrong, you can lose a lot of money.
So don’t be greedy and buy these investment ideas thinking that they are going to bring in tons of money. Instead, focus on long-term growth in your investment portfolio.