Where Can I Invest My Money For 1 Year

The year 2021 can bring you prosperity if you fully make best use of all the investment opportunities in the world.

It really does not matter what income bracket you fall in. Whether you are a coal miner or a million dollar entrepreneur, you must invest your money in a right place so that you get maximum return out of your investments.

15 Great Investment Opportunities

So read the following article for 15 great investment opportunities to invest your money around the world in the year 2021.

We have divided 15 opportunities into 3 different categories depending upon your income level.

Investment Opportunities

The first category is for high income group, second is for very, very high income group and the last one is for salaried class and low income group.

So following 7 opportunities are for high income group.

1. US Equities

If you are looking for long term investment in stocks or equities then US stocks are the best for you.

Stocks of emerging market are not looking very good. China's industrial output and growth rate has been slowing down and other western markets like UK, Germany, France etc are not looking good because of Brexit.

However, US market looks really good for a longer time period.

So if you are looking for higher returns after 3 to 5 years then you can start buying stocks of US companies like Google, Apple, Microsoft (technology stocks have lesser risk) etc listed on NASDAQ or S & P 500.

Amount that you can invest depends on your income. You can start from $1000 and go up to $1000000.

The return on the investment can easily be 10% to 20%. US equities are by far the safest bet.

Type of People Who Can Invest: People with Yearly Income over $100,000
Investment Amount: $1000 – to $10,000
Investment Period: 5 to 10 Years
Return on Investment: 10% to 20%
Risks Involved: Medium to High

2. Investing in ETFs

If you want to go for long term investment in equities without taking much risk then you can go for ETFs or Exchange Traded Funds.

An ETF invests in stocks that are constituents of an index.

If you feel that investing in equity market is not safe then ETFs offers you flexibility of a stock and protection of a fund.

There is a wide range of ETFs you can choose from. For example, stocks, bonds, real estate, commodities, currencies etc.

ETFs allows you to diversify your investments. If you were planning to invest $5000 in buying stocks then with ETFs you can diversify your portfolio and break down same investment amount into three like $3000 into S & P Depositary Receipts and $1000 each into gold ETF & Euro ETF.

However the major disadvantage with ETFs is the brokering charges. Brokers can charge up to 10% per trade which is a huge amount.

ETFs are an alternative to equities.

Type of People Who Can Invest: Yearly Income over $100,000
Investment Amount: $5000 to $10,000
Investment Period: Not Applicable
Return on Investment: 10% to 12%
Risks Involved: Very Risky

3. Mutual Funds

People always ask which is better Mutual Funds or ETFs. The answer depends upon the type of investor you are.

If you are not an active investor and do not follow the market regularly then the best investment option is Mutual Funds.

Investing in equities is bit risky but Mutual Fund comes with almost zero risk.

You can go for actively managed mutual funds which has no risk because your fund manager is going to make all the decisions.

You get to choose stocks from wide variety of sectors.

Index Funds: Index funds allow you diversification and the risk is not that high.

However there is a fee for mutual funds and they charge you an annual fee of 1.25% to 2%.

Type of People Who Can Invest: High Income over $125,000 Yearly
Investment Amount: $1000 to No Limit
Investment Period: 10 Years to 15 Years
Return on Investment: 10% to 12%
Risks Involved: Low Risk

4. Bonds

Bonds are another way to invest your money if you are not sure about equities or mutual funds.

Bonds also offer you a wide range of options so that you can go for the right kind of bond that gives you higher returns.

In US there are two types of saving bonds, series EE bonds gives you fixed interest rates and series I pays interest adjusted for the inflation rate.

For EE series maximum amount is $10,000 per person per year.

Private Bonds: However if you live outside US then you can buy other private bonds that are under government regulation and for 10 years period they will pay you up to 8% interest.

Type of People Who Can Invest: Medium Income Group
Investment Amount: $5000 to $10,000
Investment Period: 10 Years to 15 Years
Return on Investment: 8%+
Risks Involved: High Risk

5. Commodities like Silver, Gold

In this paragraph we will talk about investing your money in commodities. Both types of commodities physical like precious metals and ETF.

The most precious is gold bullion and coin. The value of gold and silver fluctuates and there is a lot of risk involved investing in Gold bullion.

You can buy gold bullion; bars or coins store in bank or home and sell it to local jewellers whenever right opportunity comes.

The usual return on investment can vary from 3% to 10% depending upon the market.

Right now 1 ounce of gold is sold at $1323. While buying gold you must avoid premium charges. At best premium charges should not be more than 10% otherwise you will not gain any returns while selling the gold.

If you don't feel safe with physical gold then you can go for gold ETF.

Type of People Who Can Invest: High Income Household
Investment Amount: $5000 to No Limit
Investment Period: Over 10 Years
Return on Investment: 3% to 10%
Risks Involved: Medium Risk

6. Fixed or Term Deposit

Although fixed deposit is not for high income households but still we have mentioned it here.

Term Deposit or fixed deposit is the safest way to invest your money. The interest rate that you earn on your investment is much higher than a saving account.

Countries like United States, Japan, Germany gives very low interest rates for saving bank account and fixed deposits.

If we talk of India then the investment period can start from 7 days (15 days, 45 days) and go up to 10 years.

The return on investment can be around 4% to 7.50% depending upon your investment time period.

However the returns on fixed deposits are taxable.

Banks deduct the TDS on interest if the interest amount for a Fixed Deposit is greater than Rs 10,000.

The tax rate is 10% if you have a Pan Card and without Pan Card they deduct 20%.

So if you are looking for long term safe investment for 10 years with 7% to 8% return then Fixed Deposits are the best.

Recurring Deposit: Common folks in India can deposit in special kind of FD called recurring deposit where people can deposit money every month just like EMI.

Type of People Who Can Invest: Salaried Class with Medium Income
Investment Amount: Up to Rs 500,000/-
Investment Period: 10 Years to 20 Years
Return on Investment: 7% to 8%
Risks Involved: Very Low

7. Company Fixed Deposits

The very people who do not like bank fixed deposit can go for company or corporate fixed deposit.

The only reason to invest in Company FDs is higher interest rates. A best rated Company FD provides much higher returns at 10% to 12% compared to Bank FDs.

In order to get higher returns you have to choose right investment period so you do not withdraw money before maturity.

However things are not that simple.

Investing in a Company FD involves risk compared to Bank FD.

Sometime it happens that a high rated Company FD gives you low interest rate compared to low rated Company FD because of the risk factor.

So if you are willing for long term investment with some risk then Company FDs is better than Bank FD.

Type of People Who Can Invest: Salaried Class with High Income
Investment Amount: Rs 500,000 to Rs 100,00,00/-
Investment Period: Over 10 Years
Return on Investment: 10% to 12%
Risks Involved: Medium Risk

Now following investment opportunities in the list are for people with higher sums of income. I mean to say minimum investment amount is $500,000 and maximum is $1 million.

8. IPO

The first one is IPO (or Initial Public Offering), it is nothing but the stock market launch of a new company where stocks are sold to institutional or big investors and they in turn sell to general public like you and me.

This could be the easiest and quickest way to get maximum returns on your investments. For investing your money you have to choose a company that is going to be a winner.

However the risk is very high and only high risk investors can think of investing in IPO.

If you are an insider and have adequate knowledge about the company then you can afford to invest in IPOs. Otherwise stay away from IPOs.

Investors can minimize the risk by doing through research and choosing an IPO that has powerful underwriter instead of a less reputed one.

Type of People Who Can Invest: Income over $500,000 a Year
Investment Amount: $50,000 to $100,000
Investment Period: Not Applicable
Return on Investment: Not Applicable
Risks Involved: Very High Risk

9. Invest in a Growing Business

You may have heard about seed funding. Instead of starting a new business from the scratch why can't you invest in a business which is going to be successful?

Please remember investing in a business is quite different than giving a loan. Here you give money and became co owner of the new company or a start-up.

You are entitled to a percentage of the entire business and also to the regular income stream.

However to invest in a business that is going to be successful you have to make a right decision at the right time. Otherwise you may lose your money.

You also have to take active interest in the business and foresee whether the business model is going to work out or not.

There are number of stories all over the world for most valuable start-ups where investors earned even 1000 times returns of their investment.

I am not saying that you have to invest in a start-up like this. But you choose a small company where you can make an investment of $50,000 to $100,000.

Type of People Who Can Invest: Income of $1 Million a Year
Investment Amount: $50,000 to $1 Million
Investment Period: 5 Years to 10 years
Return on Investment: Depends
Risks Involved: Medium to High Risk

10. Peer to Peer Lending

Peer to Peer to Lending is a new form of investment. It hasn't been there for more than 5 years.

Here you lend money to others and they pay you back with an interest rate.

The interest rate depends upon the amount you are willing to lend. Usually for investors websites like Lending Club are offering 5% to 7% interest.

Your investment can start from $5000 and there is no upper limit.

Peer to Peer lending can be risky because your money can go into default and you lose money.

Moreover outside USA there is still no concept of Peer to Peer lending.

Type of People Who Can Invest: Income over $25000 a Year
Investment Amount: $5000 to Not Limit
Investment Period: 5 Years to 10 years
Return on Investment: Depends
Risks Involved: High Risk

11. Real Estate

Investing in real estate can be the most valuable investment opportunity.

There are several ways you can invest in real estate.

The most common is buying property directly. You purchase the property either for rent, capital gains on the sale or to flip the house for quick profit.

While buying a property you have to take care all of these things because you also have to factor in taxes involved.

But the best way to invest is buying a property and selling it for capital gains.

Here you have to look around the world where you think the price is low right now but it can soar in coming years.

For example in Dubai the rates are flat however property prices are rising in Manhattan, New York.

However if you take Hong kong then in recent years prices have risen 137%. India is also a good market at present because of the falling property prices.

Therefore you have to look a right city and buy now so that you can sell for high price later on.

Type of People Who Can Invest: $250,000 to 1 Million Annually
Investment Amount: Depends
Investment Period: Up to 5 Years
Return on Investment: High
Risks Involved: Medium Risk

Following investment opportunities are more suited for fixed income people especially who are retired or government employee living in US and elsewhere.

If your investment amount is regular and you do not want to take any risk with your money then go for following 3 opportunities.

12. Pension Plans or Public Provident Fund

Provident fund is the most well known form of long term investment. If you are a common man with a median income then you are definitely going to invest in provident fund.

The income is tax free and the interest you earn is over 8%.

Once you open the PF account in a bank or post office the money is put away for next 15 years. You can extend the lock in period for more than 5 years.

You earn the compound interest of 8% on this account.

However you are allowed to withdraw an amount only after 6 years, before that you can't withdraw any money.

PF is really great for people who work in a government sector where monthly income is fixed.

Type of People Who Can Invest: Low Income Salaried Class
Investment Amount: Depending Upon Your Salary
Investment Period: 15 years to 20 Years
Return on Investment: 8%
Risks Involved: No Risk

13. IRAs and 401(k)

If you are looking for investment opportunity in other pension plans then IRA (individual retirement plan) and 401 (K) are the best options to invest in.

Although there are many types of IRAs but the best are the Traditional IRA and the Roth IRA.

If you are a conservative investor and do not want to take any risk investing your money then the Roth IRA is the best option. Your investment is 100% secured.

Roth IRA offers you more accessibility and the withdrawals in Roth IRA are usually tax free while the Traditional IRA gives you no tax benefits if you withdraw money before retirement age.

Similarly investing your money in 401 (k) also gives you tax benefits. However investing in 401 (k) can be a rip off due to high costs and poor investment choices.

Type of People Who Can Invest: Salaried Class
Investment Amount: $1000 to $5000
Investment Period: 5 years to 20 Years
Return on Investment: 5% to 8%
Risks Involved: No Risk

14. Treasury Securities like TIPS

If you are still looking for diversifying your investment portfolio then go for Treasury Securities.

Some of the common known treasury securities are bills, notes, bonds and TIPS (or Treasury inflation protected securities).

Bills and notes are for very short term (for just a year) and bonds can be risky.

So the best option is TIPS. TIPS is best suited for people with regular income or salaried class.

Here the principal amount is protected from inflation and it increases as the inflation increases and decreases with deflation.

Once you attain the maturity you are paid either adjusted principal or original principal whichever is greater. Hence it simply means you do not lose any money investing in TIPS.

Type of People Who Can Invest: Salaried Class with Medium Income Range
Investment Amount: $100 Minimum Purchase
Investment Period: 5 Years to 30 Years
Return on Investment: 5% to 6%
Risks Involved: No Risk

15. Collectables

We have talked about investment opportunities for people with different household incomes. We mentioned about high income group, very high income group and salaried class.

But I did not talked about people who collect art as a hobby.

So my last investment opportunity is dedicated to people who are avid art collector.

You can invest your money into artwork, antiques, coins, paintings, precious stones like emerald, ruby, topaz etc and even wine.

There are buyers in this world who are willing to throw even $1 million for just one painting or an artwork.

You as an investor must be smart enough to buy these collectibles at a lower price and sell it at a higher price.

Type of People Who Can Invest: Avid Art Collectors and Not for Everyone
Investment Amount: $1000 to $500,000
Investment Period: Not Applicable
Return on Investment: 50% to even 1000%
Risks Involved: Low Risk

So these were 15 best investment opportunities for all kinds of people, low income, medium income, high income and very, very high income in the year 2021.