The Different Investment Opportunities That Available in Market

Traditional ways of investing would be getting to shares, bonds, mainstream property, cash, and other ancient asset classes. However there are more unusual, however extremely rewarding opportunities known as different investment, usually initiated by smart investors because of the risks concerned in it.

Here are different investment ideas ranked from safest to riskiest, that are available in market:

1. Structured products
This is basically a contract with a financial institution to pay you a defined return at a defined time depending on the performance of the stock market. It is the safest of all the other different investments. The only way you may lose cash is once the stock market is performing catastrophically badly.

2. Bridging finance
These are short-term loans used by property buyers who are expecting to induce a mortgage from the bank but cannot wait for the approval. For personal investors, you’ll be able to invest in funds that pool bridging loans, in order to spread the risk across several borrowers. The loan is secured against the property.

3. Peer-to-peer lending
Investors meet with individuals or businesses who need to borrow cash. Borrowers will get lower rates than they would be charged by a bank, while lenders will earn more cash on their savings than they might from a cash account. It will be quite risky for the investors because the individual or the small business may default or become bankrupt.

4. Forestry
Returns from investing in woodland come from any increase in the value of the land and the trees on it, and any financial gain produced by felling trees for timber. But increase in the value of the land is just good if you can also sell the forest. There are some excellent tax breaks in the market, with no financial gain or capital gains tax to pay and exemption from inheritance tax if you hold your investment for 2 years.

5. Buy-to-let property
The property can form a large part of your overall wealth. you need to have a minimum of twenty fifth of the value of the property to use as a deposit, and additional to cover any refurbishments and legal fees. Investors can likely face competition from professional landlords and should have to deal with rogue tenants and maintenance problems.

 

 

Source : ezinearticles

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