What will be your next investment?

Investments for the long term are typically about asset formation, and the default choice is investing properties. However, this is not easy for nearly every working professional given priorities in life. Exploring such investments would also be depending on the availability of the proper type of Property finance. More importantly, it is critical that one is eligible for such financial help from banking institutions.

Apart from the property which is viewed as a safety net for future proofing involving immense fund mobilization, investors have wide options if they have access to small units of funds like a few hundred to a couple of thousand dollars.

When you are retailer investor and have spare cash in limited quantity and is a one-time fund then what are the next investment options that would pan-out for such profile of investors?

The traditional forms are typically about bonds, stocks, and mutual funds. If you are adventurous and are in the early stages of your career then stashing a few hundred dollars in new age investments such as cryptocurrencies or bitcoin is an exciting option.

Of course, this kind of investment is far riskier than the standard set of pressures and market forces which plagues investing in bonds or stocks and mutual funds.

The first information you should have about bitcoin and its ilk is that they are non-fiat currency. That is to say; they are not typically associated with any asset or linked to collateral such as gold or oil and similar high net-worth assets. Thus, the risks for an investor in such a ‘product’ are personal and will be dependent on your hunger for such technology-edged risks.

The lure of such currency remains in the fact that they have high foreign exchange rates in comparison to most other linked pairs of fiat-currency. A cryptocurrency such as bitcoin is currently associated with a dollar price of $8,000. The historic prices have been at about $20,000 in December of 2017. However, prices crashed after the peak to low levels of $6,000 before regaining as of June 2018.

Thus, when you begin to explore the options for investment, you will have to consider several factors before making an informed decision. Your profile should determine the type of investment you make. Your age, profession, salary and the number of years you wish to be invested in these types of financial products and services will have to guide your decisions. Properties are for the long-term investors looking to put away steady amounts through the tenure of their career.

The idea is for investors to be able to access their funds at their time of need. The key factor for such category of investment is that liquidation of an asset will become the primary solution. In the case of bonds, stocks and mutual funds the turnaround for liquidation is quick paced. However, the ‘risk’ is the loss incurred in the trading mechanisms. On the other hand, if the need for ‘emergency funds’ is high by choosing a financing plan against a property owned by you, is a safer and better option than borrowing at high, commercial rate of interest from institutions.