2020 brought the world not only the COVID-19 pandemic but also a crisis with all the ensuing consequences. Some companies were on the brink of survival, and investors were also not ready for such a development of events, but even managed to benefit from it. Some people chose to invest all their money in company stocks, while others used reviews4casinos.com to choose a reliable virtual place to make money. In this article, we take a look at the most profitable investment vehicle in 2021.

Option 1: buying a property

The most obvious and reliable option is real estate. According to one of the social polls, more than half of the inhabitants of our planet (52%) would prefer to invest free money in real estate or the purchase of land. It is psychologically easier for people to part with money when in return they receive something real, which can then be leased, resold, pledged, or used for their own needs.

Advantages:

  • the risk of capital loss is almost completely absent — except for cases of fraud or physical destruction;
  • if the location is chosen successfully, then you can independently choose tenants and raise the rate;
  • you can make money on the growth in value by entering the early stages of construction;
  • you can reduce rental tax costs by registering as an individual entrepreneur;
  • you can use a special type of bank loan when buying a house in a new building.

However, there are also disadvantages — the main one is the lack of passive income. If you want to invest in real estate systematically, become an entrepreneur (then you need a reliable management company).

Option 2: investment in securities

At the end of March 2021, the number of private investors reached more than 11 billion. At the same time, there are much fewer citizens actively trading on the stock exchange: about 1.2—1.3 million people, which is literally 2-3% of the working population of a small country. You can start investing with a few investing several hundred dollars. For beginners, the stock market and its instruments seem to be something very difficult, but they are not.

First, you need to open an account with a broker. Most modern banks now have brokerage licenses — just call the hotline or download the application. Next, the investor transfers money from his bank account to a brokerage account, the balance of which he sees in his application. Often novice investors are offered to give their money to trust. However, you can manage their portfolio on your own and do it quite successfully.

Option 3: investing in private companies or businesses

According to the international analytical company, the direct (over-the-counter) investment market yields a yield one and a half to two times higher than the stock market. However, you need to understand that this tool has nuances.

  1. Risks: As a rule, mature large companies enter the public market. Their cash flows are more or less stable and predictable, and their internal processes are well built. Such organizations have been assigned credit ratings that allow them to be credited without collateral at a low interest rate.
  2. Liquidity: with direct investments, the sale is associated with an independent search for a buyer, complex negotiations, as well as the involvement of corporate lawyers. This problem is partly solved by private brokers and sites for the sale of ready-made businesses and shares in them.
  3. Investment term: direct investment is a minimum of three years of waiting for financial returns. You should not hope for rapid growth in the demand for goods or services — this is a rather long and not so easy path.
  4. Active ownership: If you are a professional private equity investor, you need a much deeper dive into the essence of the business. This is an obvious plus for the company — they acquire not only an investor but also «brand ambassadors». You also need to consider the duration of equity or when will you receive the returns and dividends of your investment.

At the same time, you need to carefully select investors, who, in turn, should not have wrong expectations. You should be aware of all the risks and understand that this is a business and there can be no guarantees of 100% profitability here.

Option 4: buying gold

As a tool for storing money, gold can be profitable only in the long term. From 1979 to 2021, this precious metal grew by an average of 3–3.5% per year. At the same time, a temporary decrease in prices is always possible, from which there is a risk of losing your money.

Separately, it should be noted that there is no deposit insurance system. If the bank where you have gold goes bankrupt, then all your assets will be lost. It is better to trust such operations to reliable banks, whose stability is beneficial not only to depositors but also to the state.

Afterword

When collecting a long-term investment portfolio, do not forget about its diversification, that is, invest in various assets. Besides, remember about the risks: the return on the stock market or in business is not guaranteed — there is always the possibility of getting a loss.