The best investments to make in 2021

Investing has become a must to enjoy a comfortable future, giving you the opportunity to build up a retirement fund, an investment fund, or simply to save money. 

You may think that investing is only for the rich, the retired or those who are successful in their careers. Nowadays, investing is perfectly accessible to everyone, regardless of age, career or income. To help you, here is the list of the best investments for your money.

Why you should invest

Investing can provide you with another source of income than your fixed salary every month. The increase in your wealth will be palpable and your financial goals will be easy to achieve. Your purchasing power will also increase over time. If you have recently sold an asset or earned a substantial amount of money, making it grow will be your best decision. The pandemic has shown us that a fixed monthly income is no longer enough to support our daily needs.

Investment options vary depending on your profile and risk appetite. You can very well invest in very safe investments like corporate bonds, real estate or take higher risk choices like stock index funds and crypto-currencies. 

Investing usually requires a trade-off between risk and return. You can still take a balanced approach and make capital investments that are absolutely safe while providing long-term growth opportunities. 

Investing in shares

Investing in shares is one of the most widespread financial investments in the world.

What does it involve ?

Investing in shares is buying shares in a listed company. After investing, you become the owner of a fraction of the company, which comes with benefits.

There are several factors to consider in order to make your money work for you. Namely: the amount invested, the duration as well as the rate fluctuations, etc. The shareholder's sources of profit are the capital gains from the purchase and resale of the stock and the company's annual dividends.

Why invest in stocks ?

There are many advantages to investing in the shares of a publicly traded company :

  • Increasing the return on your investment
  • Tax advantages
  • Involvement in the management of the company by attending general shareholder meetings
  • Collecting dividends from the company's profits

Who can invest in stocks ?

Investing in stocks is a safe transaction for all types of investors, regardless of available capital or general knowledge of the field.

What are the expected returns ?

The average annual return on stock market shares is 2.6% according to AMF statistics. That said, dividend yields are not yet included. If the shares are well chosen, the returns can be much higher.

How to get started

Before choosing this type of investment, we recommend that you take the time to research the company and its industry. This includes reading financial reports, looking at stock quotes and any other current content for in-depth analysis.

When you're ready, all you have to do is sign up with a broker like eToro. You also need to consider which active investment strategy to choose for your investment success: Day trading, swing trading or scalping trading.

Investing in the currency market

Commonly known as Forex, the currency market is a highly volatile financial market.

What does it involve ?

Forex trading involves selling purchased currency at a higher price in order to make a big profit. The most common currency pair in the market is the EUR/USD. The USD/JPY and GBP/USD are also of interest to many forex traders.

This type of investment is favourable in the short term and is always done with a leverage effect. In France, the maximum amount is 30 for individuals.

Why invest in Forex ?

The currency market is rarely short of opportunities, as the price movement of certain currency pairs is very volatile. Trades are regular and close quickly, not to mention the low cost of fees. Traders then have the opportunity to speculate on price movements.

For whom ?

Forex is perfect for investors with a taste for risk. Leverage allows you to earn an astronomical amount of money, but also to make significant losses.

What is the expected return ?

The higher the risk in financial investing, the higher the return. Many forex traders manage to double their initial investment within a few weeks. A monthly gain target of 10% is perfectly achievable for an expert trader.

How to get started ?

The first step in forex trading is to learn how to protect your investment by choosing a broker. The broker usually offers several types of accounts. In this process, educating yourself on the subject can enable you to be more independent in your choices.

Investing in cryptos

Crypto-currencies still hold promise, especially the ever-popular Bitcoin.

What does it involve ?

Cryptocurrency investing involves buying assets with low values and selling them when their values rise. Traders use charts and real-time data to know when the investment becomes more profitable.

Cryptocurrencies are also used to purchase common goods and services like the currencies we use in our daily lives. The regulation of this virtual currency is not subject to any legislative power, so the transaction is done without any intermediary.

For whom ?

Like Forex, the cryptocurrency market is extremely volatile. It is favorable for short-term investments. Risk-taking traders will find it to their liking. That said, it is possible to train in crypto to master the various curves and data in real time to ensure your financial investment.

Why invest in cryptocurrencies ?

Cryptocurrencies have several advantages, namely :

  • Extremely high gains 
  • Secure and fast transactions 
  • Support for an innovative project based on ecology, finance and insurance
  • The increase in the value of the currency 

What is the expected return ?

Cryptocurrencies have a very high return if we take Bitcoin as an example. Bitcoin has an extremely varied earning potential. If you do an accurate analysis and the prices are suitable, a gain of 50 to 30,000 euros (or even more) is possible depending on the size of the investment. The main thing is that you sell and buy at the right time. According to statistics, Bitcoin posted an 87% return in 2019.

How to get started

There are two options available to you in terms of investing in crypto: trading and investing.

The first option is to take advantage of market developments. Before taking a position, you must do an analysis and follow a price.

In the second case, you must actually buy virtual currency and therefore own it. This requires opening an account and creating a wallet.

Investing in real estate

Real estate is a safe bet for any investor.

What does it involve ?

Financial investment in real estate comes in several forms:

  • The purchase of a property for resale 
  • Rental property
  • Investment funds  
  • Shares in property management companies. 

In reality, the options for investing in real estate are open to all pockets. Taking out a mortgage is not necessarily the way to go. Capital invested in real estate is safe and usually offers very attractive returns.

Why invest in real estate ?

First of all, investing in real estate gives you the opportunity to build up an estate for your future and that of your family. It is the most profitable and secure solution in terms of financial investment. 

Real estate is not influenced by the economic situation, unlike stock market investments. The real estate loan rate has also fallen continuously since January 2021. And let’s not forget the various tax breaks.

For whom ?

Real estate investing is for those looking for a long-term financial investment. While this asset requires significant capital, there are options for small investors.

What is the expected return ?

The average annual return on rental property is estimated at 7% in France. Admittedly, the rate is quite low compared to the options presented above. However, security is paramount in this type of investment. 

How to get started ?

Investing in rental property is the safest option if you are just starting out. That said, before anything else, educate yourself to avoid making mistakes that could be detrimental to your success and will allow you to make more strategic and well thought out purchase proposals. Chance has no place in real estate investment.

Conclusion : what should you invest in ?

As we have seen in this short guide, there are many investment options and different financial markets in which you can invest. Everyone can find the investment that fits their profile.

Before investing, first evaluate your goals. Are you willing to take risks for high returns or are you looking for security in your investment? Do you want a long-term investment or a short-term investment? How much money can you invest this year?

You can easily find the right financial investment for you by finding answers to these questions and the information provided in this article. You can also get the ARYA application if you are looking for guidance to help grow your money.