The best investments include stocks, bonds, real estate and gold. Few investors can pick the best investments from each category. The best investment strategy is to own all of the above. Few investors can afford to, or know how to do this on a budget. Here is how you can do it.
The best investments are all available to every-day people. If you have a few thousand to invest and limited time or experience investing you can put together the best investment strategy for the average investor. All of this can be done in one package with a mutual fund account. There is no easier-to-apply or better investment strategy out there. When you are invested in stocks, bonds, real estate and gold… you’ve got a balanced portfolio. And a balanced portfolio is your best investment strategy, year in and year out.
Mutual funds are still the best investments for the vast majority HULT PRIVATE CAPITAL of people because they manage investment assets for the investor in all of the above categories and more. When you invest in funds you are diversified within the fund. By investing money in each of the fund categories above you are diversified across the asset classes as well. The end result is a well balanced investment portfolio. The advantage: when one asset class goes out of favor, another can pick up the slack and work to offset losses with gains.
In the past, for example, rising inflation has worked to increase real estate values and the price of gold when stocks faired poorly. Inflation has been low for years, but will eventually rear its head again. Why not have an investment strategy that covers the bases and takes this into consideration? Rising interest rates can hurt bond investors and affect other asset classes as well. Why not spread your money around to avoid being in the wrong place at the wrong time?
Putting our investment strategy to work now comes down to opening a mutual fund account with a large reputable fund company; and picking funds to invest in. Your best investments take the form of stock, bond, real estate and gold funds. The largest fund companies offer all of the above. Some of them offer no-load funds with no sales charges and low yearly investor expenses. Search “no-load funds” on the internet to find them.
Your final consideration is asset allocation… how much or what percent of the money you invest should go to each fund or asset type. This will depend on your risk tolerance, whether you want to be conservative or more aggressive. The point of this article was to get you headed in the right direction toward the best investments and best investment strategy. To learn more before you take action please refer to articles on the subject of asset allocation and investment strategy. There are several available by this same author and others.
A retired financial planner, James Leitz has an MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals.