Archive for the ‘Investment Options’ Category

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.

Offshore Investing: Pros And Cons

Tuesday, July 26th, 2016

Offshore investmentOffshore investment has grown a lot in some of the past years and it has become a great source for investment. Large number of investors invests in varied nation and the party to investment gets benefited. But offshore investing is not for every person. If you are thinking of making offshore investing then you must make some research and seek advice from your financial planner if you have one. Offshore investing has created very negative image in the mind of people as whoever makes offshore investing is always indulged in some kid of illegal activities or money laundering process which is definitely not true. Offshore investing is a risky thing and you need to have proper courage to handle all that. Make proper research about the country, their terms and conditions about offshore investing and then make the decision of investment. Get proper idea about the tax rate and also interest rate and also check the bank in which you are going for offshore investing. Here are some of the pros and cons of offshore investing which will help you decide whether to go for offshore investing or not.

Pros

  • Low regulatory environment

Market of investment can flourish a lot and can grow very rapidly if the regulatory environment is low and bit flexible which is definitely there in case of offshore investing. Just for instance take example of hedge funds; it is such a thing which can capture good amount of market if there is low regulatory environment. If the regulations are very tight, people would not be much interested in making offshore investing if the environment is very stubborn and there are lots of rules and regulations and procedures to be followed.

  • Tax benefits

If you are into offshore investing and you choose such a jurisdiction where the tax rate is much lower than that of your country then you are benefitted a lot. You can have lots of savings on your tax. Many people also take undue advantage of it but if thought in a positive way, it is one of the major benefits of offshore investing.

  • Confidentiality

Confidentiality is must when you make an offshore investment and you are given guarantee as to no one else except you will be provided with your matters in case of offshore investing. As per the matter that it is for illegal stuff then such things do require high level of confidentiality.

Cons

  • High risk

As these market is not much regulated that too in a proper manner, the risk has much increased in this market. There are chances that you lose your potential investments when there is change in inflation situation to recession situation.

  • Less transparency

As these types of investments are highly confidential, chances are there that illegal business is carried on. Lacks of transparency can one of the major sources in illegal matters. It can also encourage criminal activities which is not at all a good thing.

 

Mutual Fund Investment Risk

Friday, January 3rd, 2014

Mutual Fund Investment RiskMutual funds advertisements disclaim, “Mutual Funds are subject to market risk. Please read the offer document carefully before investing”. This disclaimer has been going on for innumerable years now just to make sure that the statutory requirements are taken care of. Only a handful of people must have heard this line when it flashes by at a speed faster than lightning on the television or radio or internet videos. In the case of print media (magazines and newspapers), it is published in such small fonts that you will have to look for it in order to read it. The advertisements are rarely educative, hence it is only the investors, who already do know the statutory requirements, who would know the full statement.

So what actually is the mystery behind this statement? This flash statement means that the money that is collected from investors is further invested by the mutual fund schemes in instruments that are “subject to market risk”. Every person investing in mutual funds must read the offer document thoroughly before they trust the fund house with their money.

So what exactly is “market risk”?

The risk that can reduce the value of the investments in the mutual funds due to market conditions is called market risk. With fluctuations in the market, value of property, gold and every type of asset goes up and comes down. The fluctuation that causes the market value to go down, and subsequently the investment value too, is referred to by this “market risk”. The various types of market risk are currency risk, interest rate risk, commodity risk and equity risk.

Currency risk: This kind of risk happens due to variations in foreign exchange rates.

Interest rate risk: This kind of risk happens because of variations in interest rates.

Commodity risk: This kind of risk happens because of commodity prices changing.

Equity risk: This kind of risk happens because of variations in stock prices. The mutual funds invest in these stock prices.

Negative aspect of investing in share market

Saturday, November 23rd, 2013

investing in share marketAre you interested in share market? If you happen to be so then you do need to know everything about the share market. Here is a quick spec into the negative aspect of investing in share market. Consider taking a close look.

• As you come to discuss over the issue you do need to take your glance at the issue of uncertain dividends. It is a pretty important fact and you have got to be highly careful on this aspect. In this connection you do need to make it a point that you are going to learn in details about the process of periodic distributions. It is a pretty important issue to take note of.
• At the same time you do need to make sure that you are going toi keep yourself abreast of the risk factors of the share market. It is a pretty important issue to take note of.
• Limited information is not welcome in the world of share market. Consider taking a close look at all the essential facts as well as figures.
• You do need to make it a point that you are going to learn about the derivatives precisely. TO discuss over the issue you do need to take your glance at the issue of uncertain dividends. It is a pretty important fact and you have got to be highly careful on this aspect.

These are some of the alarming aspects that have been presented over here. You do need to ensure that you are going to be careful about them for sure. You bet you should do so. You do need to make it a point that you would keep an eye on whatever has been shared with you over here. You definitely want to ensure that you are not going to pass over the essential rules in this regard. You have to pay heed to the essential rules for sure.

Buying a foreclosed property

Monday, June 24th, 2013

foreclosed propertyMany people these days prefer to buy foreclosed properties. But before you make any such purchase, you must know what a foreclosed property actually is, where to look for such property and the things to take care of while buying a foreclosed property. Whenever the owner of a property defaults his loan amount or fails to clear off all his outstanding debts, then the lender takes over his property. You can buy a foreclosed property either from the right owner directly or in an auction organized by the lender.

Since the right owner has failed to make one or several payments related to the loan of the property and planning to sell it off, you always have the option of negotiating the price of the house. If negotiations can be done properly, you can grab the property at a real lucrative price. But you must inspect the property properly before you quote a price for it.

Also auctions are held by lenders, who take over the right of property from its owner on defaulting, for selling off the property. The highest bidder in the auction buys the house. It is always better to work with a reputed foreclosed property agent whenever you are buying any such property. He can guide you to the right type of foreclosed property depending on your demand and budget.

Things to remember before investing in real estate

Monday, June 10th, 2013

investing in real estateAre you investing your hard earned money in a real estate business, and then you must be sure of the things associated with your investment. Before investing make sure that you have enough evidences of this being a profitable deal for you. For the knowing this you need to know the following things prior to the investment.

  • Make sure that you have a good knowledge of what you are investing in. the property that you are investing should be checked well.
  • The land rate charts of that area should be studied prior to signing the deal. This will make sure that you have done the deal in the time when the market stays low.
  • The market charts will also show you whether the property you are investing is likely to increase its value or there will be a loss in the deal.
  • If buying an old property makes sure that you have gone through the checking of the amount of repairs that the old property needs.

By considering these above factors before signing the deal you can actually be making good profits for yourself.

How to invest profitably on a second hand car?

Monday, August 20th, 2012

second hand carSecond hand cars are more profitable investments than brand new cars driven right out of the showroom. Value of second hand cars do not depreciate immediately like new cars and this is what makes it more popular. Checking the engine conditions is important. Sparkling clean engine bay does not necessarily mean top condition of the engine. It is better to take a long test drive on different roads and terrains at different speed levels to check the actual condition of the car.

Color of the engine oil and coolant are also good indicators of the car health. Check the speedometer and log book of the car carefully to know how much M.O.T is left on the car. Tax failure on a car can lead you into trouble with the authority to get the car on road and you certainly would not want to pay the tax for the distance someone else drove.

Make a fortune in the world of black gold

Saturday, August 4th, 2012

Oil trading, trading tipsThe phrase “black gold” was first heard in the television show named “The Beverly Hillbillies”. With the world becoming more and more modern, black gold has become an addiction for people these days. Oil trade has become one of the most profit making sectors in the world now. This trading in the oil sector is also known as black gold. If you want to become a billionaire then it is better you go for oil trading. For that you will have to keep a few things in mind.

The first thing that you should notice is the effect of oil in the global market. If there is a high demand of oil then you must be sure that the amount you supply is always less than the amount that is demanded. This will increase the rate of oil and that is where you make the extra profit. It is a trick played by many to earn more in a short time.

Choose Brazil for profitable investments

Wednesday, July 25th, 2012

Profitable investments, investment optionsIf you’re looking for a good place to invest and gain profits considerably then you should invest in Brazil. It is the hottest destination for investors during these days. The reasons for which Brazil has come into the spotlight before investors is that because there are abundant natural resources present there, the consumer spending profit is high and the baking system is well organized and safe.

One thing which you should take care of when investing in Brazil is that you should know and sort out your tax matters. The labor is cheap and efficient as well in Brazil with hardworking and friendly people. People no longer are ready to stay unemployed. Poverty in Brazil is receding daily and investors are gaining a lot through labor, natural resources, etc. The travel and tourism aspect of the Brazilian government is also doing a lot of progress and all investors are interested in that as well.

An overview on tax lien investing

Thursday, June 21st, 2012

Tax lien investment, property taxIf you can learn the ropes, you will be able to discover the reason behind the top position of the real estate industry. It is considered as the most accessible, the safest and the most lucrative from of investment that a person can make. You will be able to make streams of multiple incomes through the investments made on real estate.

Counties, states or the governments of local nature raise the money in order to provide certain benefits and also services through taxation. A certain kind of taxation is known as the real property tax. The owner of a property is subjected to pay an amount of tax on the property owned by him. This amount of tax is collected by the government of the area where the location of the property is. If there is a failure in paying the amount of the tax, the amount will become a lien of tax against that property on which the tax is made.