Every investor starts planning their portfolios well in advance. For 2021, the situation seems far more challenging thanks to the state of the world economy. The Coronavirus pandemic has thrown investors off gear and some of them are having being forced to rethink their portfolios.
For an investor, every investment needs to deliver on two main things-
- Safety
- Growth
These are two attributes every investor wants right across their investment portfolios. While some traditional investments like gold are going to find a way to the portfolio, others seem more of a risk. Like we already stated, the pandemic is to be blamed for the confusion.
In this article, we are looking at the top five investments going to deliver the maximum returns in 2021. We take help from some of the leading investors and analysts on Wall Street in this regard.
List of Top 5 Investments going to Deliver the Highest Returns in 2021
- Cryptocurrencies-
$19K and rising! That is the bell ringing in the ears of most investors in December 2020. The strong showing of Bitcoin and Ethereum means that having cryptocurrencies in the portfolio is already a forgone conclusion.
According to crypto trader investors are thronging to exchanges and trading platforms like never before. With 2021 going to be the year when the world economy bounces back, expect cryptocurrencies to reach upwards of $100K by December 2021!
- Start-Up Equity-
If you are an investor who wants to do a little more than just invest, you should definitely look at acquiring equity in start-ups. Young start-ups experimenting with AI, ML, and Blockchain in countries like India, Singapore, and other countries should be looked at.
Start-ups who are at their found round of investments are perfect for investors. This will allow you to ride the growth wave and also bring your influence and expertise to the table. There is a lot you can learn about a new industry and develop yourself as an investor.
- Gold-
There might not be an investment article for the last twenty years, which did not mention Gold. The yellow metal continues to soar to new heights and enjoy its status as one of the safest and most dependable investment options in the world even to this day.
Along with cryptocurrencies, gold needs to be on the investment portfolio. If not from the growth perspective, investors should definitely value stability. Gold is perfectly going to compliment your crypto investments. One gives growth, the other delivers on stability.
- Real Estate-
You might be wondering why we have mentioned real estate on the list. This given the fact that the world economy is seeing its worst slump in recent years. However, almost all experts say that trends prove that there is a great chance of recovery in 2021.
Investors need to be selective in terms of their real estate investments. Residential real estate, especially in larger homes in country areas stands to grow as more and more people want to look at bigger homes. Avoiding commercial real estate can be a good idea.
- Government Bonds-
Almost all national governments want people to invest so that the financial economy becomes stronger. Governments are under tremendous financial pressure because of the pandemic. This is why they want people to invest in areas, which would help them.
To this end, most governments are working overtime to give great returns on investments like bonds and fixed deposits. People can always be sure that 2021 is going to be a year, where governments are going to incentivize individuals spending in their bonds.
The Bottom Line
As an investor, you would want to not only spread your investments but also look to balance them out fairly. Having the right amount of growth and stability is the best way you can ensure that the year 2021 reflects well on your investment portfolio.
Post published in: Business