If you are not satisfied with the amount of return on investments, you should change your strategy. But consider a combined option – dividing capital between two or three strategies, which will maintain good diversification.
What are the ways to increase the return on your investment?
1. Fill your investment portfolio with stocks
Long-term returns on stocks are significantly higher than bonds and cash. While investing in the stock market is considered risky, there can be periods of ups and downs and low market returns as well. To experience all the advantages of this strategy, you need to invest for a long period of time and not forget about volatility.
2. Invest in a growing industry
Investing in the most promising sector is the best way to increase your profitability. It is worth paying attention to the companies that are developing a new format for the fifth generation (5G) wireless mobile network. Also pay attention to companies that develop, manufacture and sell modern robotics. This industry is quite young, but dynamically developing.
The average cost strategy helps to solve the problems with surges in the market and make a profit precisely in the long term. There is no need to constantly look for the moments of entering the market, be afraid that prices will fall even more or that the current price is too high for buying. By choosing this strategy, you eliminate the emotional aspect of investing. You need to buy assets at regular intervals for a certain amount. Using this strategy, in case of erroneous transactions, does not allow the portfolio to fall in price much. And ideally allows you to get even more profit in the future.
4. Invest in gold
Investing in gold is a popular way to diversify your investment portfolio. In times of uncertainty in the market, gold is a safe asset. The price of gold usually depends on the state of the economy and the exchange rate of the US dollar. No matter how the price of this precious metal changes, it cannot go down to zero. Gold will never completely depreciate as it can with stocks. The risk of completely losing your capital does not threaten you.
5. Pay attention to passive investing
Passive investing is often more profitable than active management strategies. Passive investing is the purchase and long-term holding of securities. This strategy works on the principle that in the long term, the market always grows and has a positive return. The costs with passive investing are significantly less than with intensive trading, since you have to pay commissions for frequent transactions with securities.