Making investments throughout your life is very crucial, as the economy is never stable. As a matter of fact, Jennifer Willy, the editor of travel-related education website Etia, says its importance can be felt even more now that COVID-19 continues to ravage the world.
She highlights the need to invest smartly in the year, and some of them are listed below. The first smart investment would be saving accounts that are high yielding. You can earn even more money as interest by investing in online banks as the overhead cost is less and the transfer of money is easy.
Secondly, mutual funds and government bonds are very good investments. They are perfect for someone who does not want to take too much risk. They are also for beginners.
Lastly, renting out properties are becoming more profitable each year. Mortgage rates are hitting new lows and it is a great time to invest in these properties.
These are just some of the more basic ways to grow your hard-earned money. So, in order to fully comprehend the idea of investment, especially during this unpredictable period in our lives, we’ve interviewed experts from various industries about the best financial vehicles in 2021. Here are their answers:
Tech Companies and Cryptocurrencies
The best investments in 2021 are in high-tech industries and companies like Bitcoin. These investments are effective in allowing young business leaders to flourish in this troubling economy. Investing is an effective strategy during this difficult time of the coronavirus pandemic and young investors need to make informed decisions when it comes to making educated investments. There are companies that are not performing so well; hence, it is not a good idea to invest in these various companies. Investing is such an effective strategy to perform as companies are struggling from this coronavirus pandemic and need a boost in the overall morale of the organization.
To begin with, investing during a difficult period tends to be successful as stocks go down and shares are cheaper during this time. Young entrepreneurs need to do their examination and invest into companies that can bring them good amounts of money during this year. However, there are companies that are not doing so well due to this pandemic; hence, it is not a good idea to invest in these types of companies. In general, investing strategies and lessons should also be pursued by young entrepreneurs to learn the various aspects of successful investing strategies.
In addition, investing during troubled times helps businesses grow financially as it allows them to recover from their losses. Businesses need investments in order to compete in a troubled marketplace. Moreover, businesses need investors to make informed investing decisions in a troubled economy. Hence, investments need to ensure the survival of struggling businesses during tough times affecting these businesses.
– Bill Joseph, Chief Executive Officer of Frontier Blades
Interest in environmental, social, and governance (ESG) investing has grown rapidly as what I’ve observed in the past years and will continue to do so in 2021. Companies with strong ESG practices will encourage others to follow suit when investors patronize only those who meet the criteria set in the FTSE4Good methodology. On the downside, there are still companies that may score well but whose products are questionable for an ethical consumer (think weapons or tobacco).
Finally, many institutional ESG investors will now encourage other companies to follow environmental, social, and governance guidelines so that there’s a collective effort in combatting the pandemic. I don’t think the interest will be lost once the pandemic is over.
– Michael Hammelburger, Chief Executive Officer of The Bottom Line Group
With the COVID-19 outbreak spread all over the world, consumers are turning to e-commerce as a way of shopping in a safer, more hygienic way. E-commerce offers an extra layer of convenience as through it, customers get what they want in a short space of time at competitive prices. This being the case, we’re likely to see more e-commerce platforms emerging as the year progresses in order to cater to a new type of clientele. If you haven’t invested in such a platform yet, now is the time.
– Donna Atanasova, Marketing Expert at myPOS
Real Estate Tokenization Platforms
The best investment vehicles in 2021 are tokenization platforms for real estate. These platforms, such as SolidBlock, allow property owners to offer investors an opportunity to invest in much lower thresholds, offer access to incredible properties around the world as well as provide liquidity in order for investors to be able to sell their investments early.
These investment vehicles also provide additional security to investors because while the underlying product is a real estate asset, they are investing in a financial product or a traditional security that records ownership via blockchain.
These traditional securities are fully compliant with any appropriate regulation and are treatable on a variety of chain exchanges and automated trading systems.