As 2020 draws to a close, millions of people are actively seeking out the best investment opportunities for the coming year. With the economic impact of COVID-19 still undetermined, households will be eager to grow their capital but may be hesitant about taking high risks.
Fortunately, the wide range of investment opportunities ensures there’s something to suit everyone. From modest investors who value maximum security to adventurous investors who are willing to play the market with high-risk strategies, there are many lucrative opportunities to look out for in 2021, including:
Shares in Growing Companies
Buying shares may be a traditional way to invest but savvy traders always stand to make outstanding returns. As industries evolve at a rapid pace in response to COVID-19, companies who are actively modifying their operations to respond to changing demand are likely to see significant growth in 2021. Providing investors hedge their bets correctly, this could be one, high-risk, way to see large returns.
It might be relatively high risk, but digital currency is becoming more mainstream all the time. This means numerous investors are choosing to diversify their portfolios by incorporating cryptocurrency into the mix. Whether you want to buy and sell rapidly or purchase lesser-known currency and hope it makes it big, some investors have made massive gains by trading in digital currency.
If you want to profit from the stock market without actually buying or selling shares, bonds or stocks, spread betting could be one way to achieve it. Bear in mind, however, spread betting is risky and you can lose a significant amount in a short amount of time if things don’t go right.
Although real estate is considered an alternative form of investment, many people view it as low risk. Providing you buy when markets are low, there is a good chance that you’ll see a profit, providing you can delay a sale until property values increase. Furthermore, you can achieve short and mid-term gains by leasing your property and generating rental income.
High-Yield Savings Account
They may not offer a massive return by high-yield savings accounts are a secure way to save your money and earn a little extra. If you’re a low-risk investor who puts security first, this could be the ideal way to manage your finances or diversify an existing portfolio.
Managing Your Investments in 2021
No matter what investments you make, traders will be looking for secure and efficient ways to manage their finances in 2021. With algorithmic trading, for example, investors can set up trading strategies and trust their computer or laptop to do the hard work for them. Alternatively, appointing an investment manager can give you peace of mind, although it tends to come at a cost.
After the unpredictable and unprecedented events of 2021, it’s hoped that the economy will recover quickly. While it remains to be seen how long it will take to bounce back, making the right investments can only traders to generate profits in any climate, which means 2021 could be more lucrative than you anticipate.