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Investment Opportunities That Do Not Require Large Sums of Capital

Investment Opportunities That Do Not Require Large Sums of Capital

More and more people are looking for investment opportunities to dip their tow in the water in the world of investments. Whether this is business or personally related – future planning and proofing is becoming ever more common place. Contrary to popular belief, you do not always need vast sums of cash to start investing, which means you can start investing in your future with several carefully planned and lower risk investment opportunities.

Here, we analyze a few of those opportunities.

Certificates of Deposits

Certificates of deposits are a popular form of investments, that are usually offered by banks. They work by providing a set interest premier rate for people who are looking to invest with a lump sum deposit and are willing to leave the money in the bank untouched for a long period of time. This type of investment is similar to leaving money in a savings account, but it offers a much better rate in comparison to the rate you would get with a typical savings account.

Forex Investments

Forex investments work by trading different currencies and exchanges. Investors can continually trade as different currency values rise and fall worldwide. They are usually the most liquid assets market in the world, with trade, commerce, and finance all playing a major role in the changes of the markets. There are endless different forex trading platforms that traders can use, and the number of them increases as the popularity in this form of investment continues to be on the rise.

Betterment Investing

Another very popular form of investment, is Betterment investing. This involves the use of “robo advisors” to help you on your investments online, and these can be acquired at low fees. Betterment is a great platform for those looking to invest with small amounts of money and has the added benefit of a professional guidance from these “robo advisors”.

Investors can decide how much they want to risk with their investments. A portfolio is then created online, and all investments are made by the “robo advisors”, ensuring the only activity from the user is funding the account initially, and monitoring it as and when required. One can risk as little or as much as they wish, with risk adversity levels being defined by the user. The platform is helping people with little experience to get involved with an investment portfolio.

Employer Retirement Plan

This is another simplistic saving method, that is now being partaken of amongst many employers. A certain percentage is taken out of employer salaries each month to add to the retirement pot. As a result, over time, money is saved for when the employer retires. It’s also a fantastic solution if you don’t have the capability to invest in more skill intensive forms, as it is automatically taken out and cannot be accessed until you retire. There is a wide array of options available for retirement investments, in which you can make contributions to a traditional IRA – with the money usually being entirely tax-allowable. As such, popularity is increasing at a substantial rate.

REITs

Better known as real estate investment trusts, REITs are companies that own or finance income producing real estate around the world, for different property sectors. A challenge that comes with REITs is that different real estate properties must meet the requirements that are set out to qualify as REITs. Nevertheless, these continue to be on the rise as a form of trading and provides a different avenue for people to invest their capital.

Dividend Reinvestment Plans

These are commonly known as DRIPS, and are plans whereby one can invest and earn dividend returns on stocks of certain companies. This is usually only offered by bigger companies, so if you have a hunch about the performance of a certain company, then you can invest in that company and be paid based on its success. Further still, you can be engaged in this process through payroll deductions as well. Dividend reinvestment plans are something that are becoming more common because money can be reinvested automatically to buy more stocks in a selected sector of companies.

Mutual Funds and ETFs

There are many low minimum mutual fund and ETFs that present excellent investment opportunities. These investments usually have varying minimum deposit requirements, but you do, in most cases, need to have some capital behind you before opening an account. If you do have sufficient capital, you can then invest and get returns on your investments over time. Mutual funds work by utilizing different pools of money from investors to purchase different securities. Such securities include covering the likes of stocks and bonds to further add to your investment portfolio.

Investment opportunities are rife in today’s society but picking the right one is essential for success. No investment, or at least very few, come without an element of risk – so it’s important that anyone who is new to the activity has thoroughly researched the concept, and is comfortable that they’re not investing more than they can afford to lose. Expect this list to grow over time – the investment industry is on the crest of a wave.


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by Harvey Carr // Harvey Carr is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.