Archive for November, 2016

Types Of Long Term Investments

Wednesday, November 16th, 2016
types-of-long-term-investment

various types of long term investment

The right tip of earning money and keeping it for long term with increasing it, is investing it in right place. Making investment is not an easy thing to do, if made the wrong choice; chances are there you lose your money. The right way of earning more out of less with less risk is making long term investments. Long term investments are great choice of nurturing your money in right direction. If you want to be successful in making long term investment, you have to prepare yourself to put your money in some stable and long term growth investment. While making long term investments you need to be very much patient as here you will not get your money real soon, you have to wait for long time and see your money grow. Generally most of the long term investments have the same characteristics.

  • Long term investments needs less amount of management as compared to that of short term investments.
  • Long term investments will avail you with long term growth.
  • A long term investment carries less amount of risk.
  • They will carry a history of long term performance.

If you see these characteristics in any of the investment structure, you can consider they are safe and profit bearing. Here are some of the types of long term investments.

  • Index funds

Index funds are one of the best long term investments as they are very much strong and are also diversified product. An index fund will hold up varied range of companies and hence you are funds are not only tied up to profit or loss of any single particular company. If the stock markets have a long term growth then your long term investment will also have a great long term growth which will definitely very much profitable.

  • Bonds

Bonds are considered to be excellent form for making long term investments as they are very much less volatile as compared to that of stock on an average. Bonds which are having maturity date of 10 years or even higher than that are likely to give better income as compared to that which have lower maturity date. If you are ready to put your money aside for that long period of time and then sit back relax and watch it grow then this can be a great source of long term investment for you. There are several types of bond products which come with guarantee. This will not only give long term investment idea but also decreases your risk factor to a great level. Due to this reasons bonds will always be considered as one of the best source of long term investments.

  • Blue chip stocks

Buying and investing in individual stock is not a good option for investment specifically for large net worth investors but still many of the times it can give you a great gains by investing in blue chip stocks. This will basically be the part of a company with billion dollar valuation.