Investing is a main part of the modern economy. All investors allocate money expecting for the future income (return). There are many options for investing, but it depends on the cash amount. Let’s say you have accumulated $100,000 and want to increase your capital. What business sphere can you invest in to take a profit? It all depends on your expectations in terms of profitability.
Here are the most common ways to invest your money:
- Bank deposits;
- Open-end funds;
- Stocks, bonds;
- Endowment insurance;
- Hedge funds;
- Forex investment trust;
- High-Yield Robo Investing (like Rofx);
- Real estate, gold, and other metals.
Of course, this is not a complete list of all the opportunities for the future investor. The main task is to choose the right sphere for profit. Some investment options are less risky but offer little return. Let’s find out what is best option for a modern investor.
Deposit is the easiest, most basic and reliable way to invest. You give your money to the bank at a certain percentage (for example, 5-10% per annum). Bankers give this money to another client as a loan, but already at 15-20% per annum. After a year the bank returns your funds with accrued interest. The advantage of the deposit is that you know exactly how much money you can get after a certain period of time. You can calculate the profitability on a deposit particular.
Most countries have guaranteed deposit insurance funds. If the bank declares bankruptcy, then you can get your money back. The main problem is low profitability. Most offers have a low interest rate (1-5% per annum). Even 10% does not look impressive. This option is suitable for personal savings and money storage, but not for regular earnings.
Open-end fund & Trust Management
This is the second most popular way to invest. Open-end funds are a collective financial instrument when investor money is invested in one portfolio. These funds are multiplied due to investment activity and trading. Funds are usually invested in stocks, bonds, gold, and currency. More precisely, they are not just invested, but they are managed. The task of professional managers is to invest with profit.
Immediately it is worth paying attention to the fact that in some companies the individual trust management service can be called such nominally. Your money will not be managed according to an individual strategy. Most likely, you will be offered to join one of the typical investment strategies available in the company.
Imagine that besides you, the company has several dozens or even hundreds of investors who transferred the money to trust. How to manage so many accounts when the resources of one company are limited? To do this, resort to two methods. The first way is the so-called “composite” accounts, when the funds of all investors are combined into a common investment pool (portfolio). This portfolio is managed according to one of the strategies chosen by the manager. Each client receives individual reporting.
The second method is the use of a special computer program that allows you to simultaneously make the same transaction on different accounts of many customers. Thus, managing multiple accounts is simplified. As you might imagine, in this case, the investor also needs to join one of the standard strategies.
How to invest in stocks
If you have $100K you can invest in stocks and make money on it. The main reason for investing in stocks is the possibility of high returns. If you are afraid of the attendant risks (and they exist for any type of investment, even with deposits in the bank), then you can be happy and disappointed at the same time. It is almost impossible to go broke on stocks. Of course, there is a chance of losing some of the funds, but if you competently manage your knowledge regarding the purchase and sale of shares, then in the vast majority of cases you will receive only profit.
Through a broker, you can access any trading platform in the world, be it the stock markets of the USA, Europe, India, China, Brazil or Australia and buy/sell securities traded there. You just have to open an account with the selected broker, deposit money, choose a tariff plan that includes access to the trading platform you need. Next, select stocks, check the current rate and leave a purchase request. If we work through the Internet, then special programs will help us here, for example, QUIK, MetaTrader5.
Forex Investing: How to Invest $100k via RoFx
RoFx is an automated Forex trading platform. It uses machine learning and AI algorithms. The main advantage is the absence of a human factor and basic errors. A machine algorithm evaluates the market situation and makes deals when the probability of profit is especially high. Through in-depth analysis of many factors, Rofx offers a yield of 10% per month on deposit.
Another advantage of investing is the continuous training of AI algorithms. The more transactions the forex robot makes, the higher the investment security. Also, you can use various formats to fund your account and withdraw earned funds. Another advantage for beginners is the insurance fund. It protects your trading deposit from drawdowns and reduces risks. This eliminates unprofitable transactions, allowing investors to receive a stable income. Automation of the trading process guarantees no failures and no commission for each transaction.
Unlike Robo Advisors, Rofx is fully automated R does not use classic trading strategies. Most programs have basic functionality and work on the same scheme. Machine learning and AI algorithms help Rofx deliver better and more stable results for investors. No manager or forex broker guarantees you such stability.
Final Thoughts: Best Investing Options
These are just a few ways to invest one hundred thousand dollars and make a profit. Decide what rates of investment growth are important to you. If you want a small increase in capital, then deposits and real estate investments will be a good option for you. If you are set to quickly increase capital, then Forex and RoFx may be the best choice for all novice traders. Invest correctly and profit will be your best motivator.