Most people earn money through hard work, i.e., by getting skilled, educated and getting a job. So, when it comes to money, most of us are cautious about where to spend or invest every penny. If you are like that and you are still hoping to ensure that your investments grow with time, then you must read the top 5 ways to make your investments grow mentioned right here.
- Go for Slow Returns
The first and safest way to make your investments grow is to invest in safe investment options such as investment grade bonds and blue-chip stocks. Though the speed of such a portfolio would be slow, it will at least be steady and you will be assured of some returns at least.
- Take Calculated Risks
Another way of investing is to buy stocks of a good company when they are down. As good companies usually have a strong financial backing and a sturdy reputation, it’s very likely that the stock price will go up sooner rather than later. So, be a smart investor, do your homework and keep an eye on slumping rates of stocks of branded firms.
- Try the Safe Way
When wondering about 5 ways to make your investments grow, you cannot ignore the zero-coupon bonds. If you choose to buy it, you will not be buying it at a lower price and get your money’s worth when it inches towards maturity. Such an investment can keep you active in all double the money discussion and may help people believe that you are a smart investor. Also, this method has no reinvestment risk as compared to the standard coupon bonds.
- Fastest Method
If you don’t like to let your investments sit and grow slowly while you grow old, then you can join the group of risk takers and invest in penny or margin stocks. You can use stock options like simple puts and calls to speculate on any company’s stock. As each stock option usually represents 100 shares of a stock, a slight increase in the company’s price can give you, the investor, marvelous returns. Two other dependable strategies are to buy stock on margin and selling a stock short. These methods will allow you, the investor to borrow money from a brokerage house to sell and buy more shares than you have. It will boost your potential profits considerably.
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- The Most Dependable Option
This one is our favorite among the top 5 ways to make your investments grow because it gives good returns, is less risky and is trusted by hundreds of thousands of people. Yes, we are talking about plans like 401 (k) where you need to make a monthly contribution, enjoy when your employer matches it and get a sense of security as it will ensure that your future is secured. According to estimates, for every 65 or 75 cents you invest, you can get about 1.50 dollars added to the retirement nest egg. Plus, you get tax relief too.
The Bottom Line
If you are a newbie in the investment world, then you should stick to these 5 ways to make your investments grow as they are quite reliable and way better than losing all your money to investment scams that are growing by the minute.