The investment opportunities for millennials are enormous. If you are a millennial and have earned a decent amount, you can invest it over time to accumulate cash and save it for your future. But if you haven’t invested before, it can be overwhelming.
If you want to invest over a longer period and want to research different stocks, these are some of the best options. You can study the evaluation of a company and its strategy before making a call. Millennials should also be on the safe side of investment funds that grow with the company or expand into many categories.
1. Long Term Options
These options allow you to keep your investment for at least a decade.
a. Growth Mutual Funds
With managed investment funds you can achieve an annual return of up to 10%.
b. Exchange-Traded Funds
ETFs are similar to mutual funds in that they are traded like shares. However, they have lower expenses, lower interest rates and no minimum investments compared to Mutual Funds.
c. Target-Date Funds
There is no target date, so the funds can work with a specific year in mind. By 2050, the fund means their investments will have risen significantly if they want to retire in 2050. Invest as much as you can before your retirement age.
d. Individual Stocks
If you want to invest for a longer duration and have time to research about different stocks, then this is one nice option to invest in. You have to study a company’s valuation and its strategy and then take a ca
2. Short Term Bonds
This are investments that allows you to invest for 5 years or less.
a. Treasury Bonds
US Treasury bonds are one of the most sought-after options as the US government pays its dues.
b. Other Bonds
Treasury bonds are not the only bonds available, and there are many other bonds that pay higher interest rates. Still, some charge higher fees than others. Find a bond that matches your risk tolerance level, as higher interest rates mean higher risk levels.
c. Broad Market Index Funds
Broadmarket index funds are a type of fund that includes investments that replicate a large index. With a broad index fund you can buy a large number of shares of different companies in one sale.
d. Peer-to-Peer Lending
Investors lend money to people without a bank as an intermediary. You invest when you know you won’t need the money in five years.
These are some of the best investments for millennials to invest in. It is possible to achieve a large return on these investments.