5 Unique Investments with High Potential Returns

The cost of living is constantly going up. That’s why it is important to invest our hard-earned money. Naturally, we are looking for investments that offer high returns and minimizes on risk. But the reality is that risk and return are directly proportional; risk little and get little returns, big risks come with big returns. However, to some extent, there are better low-risk investments than others in terms of returns. Below are five such investments:

1. Currency Trading and Investment (Iraqi currency)

Currency trading is normally a high-risk investment that should be left to the professionals. However, the Iraqi currency offers a unique investment opportunity. It is ideal for long-term investment and, therefore, it should be part of your passive-income strategy. For American investors, now is the perfect time to invest in the Iraqi currency for these reasons:

• It is at a low-cost value point: this refers to the exchange rate of Iraqi currency to the US dollar. One US dollar can buy around 1,902 IQD. To get the latest rates, check with the Central Bank of Iraq. It is the best and most reliable place to get the latest news on Iraqi currency. It is smart to buy the currency at a low cost so that you can get profit when the exchange rate improves. It also offers you a good opportunity to leverage the purchasing power of the strong US dollar. The dinar is at a low point and many experienced investors are speculating that the value will go up.

• Dinar revaluation looks realistic. The opportunity for investment is available because the Iraqi dinar will revalue and change the situation. The gap between the USD and the IQD will reduce and the investors will profit from selling their dinars. The dinar is also very likely to strengthen against the dollar because of the country’s improved fiscal health and economic growth.

2. Initial Public Offerings (IPOs)

For a company’s shares to be listed, they have to be initially made public through an IPO. Some IPOs attract a lot of attention which can distort valuations on short term returns. Others, however, offer investors the opportunity to buy shares when a company’s real value has been understated. They end up making profits on both the short-term and long-term basis once correction has been done. IPOs are risky because most fail to bring noteworthy returns; some bring no returns at all.

3. Crypto Investments Like Bitcoin.

Bitcoin has appreciated in value in the recent past. Its current level is between $15,000 and $19,000. Bitcoin prospects have been boosted further by the announcement of the world’s largest derivative exchanges that they plan to launch Bitcoin future contracts. It is expected that Bitcoin will keep going higher, possibly up to $100,000. However, it is prudent to watch how Bitcoin value moves. It is important to know that the world of crypto-currencies is volatile and turbulent and anything can happen. Values can go up and down at an instant.

4. Real Estate Investments Trusts (REITs)

REITs are mutual funds that invest in real estate. The investments are usually on commercial real estates like office buildings, retail shops, and apartment complexes. Investments can be of a single property or a number of real estate developments. The latter offers more diversity in terms of location and numbers.

REITs are suitable high-return low-risk investments because they get special tax treatment and they pay dividends. REITs offer a stronger measure of liquidity compared to investing in real estate as a principal.

5. High Yield Bonds

These are normally issued by governments and high-debt companies. High-yield bonds can bring tremendous returns to investors in exchange for the potential loss of principal. These can be more attractive compared to bonds issued by governments in a low-interest environment. High yield bonds are also prone to fail but the potential can be very lucrative.

Let’s face it, the returns on safe investments are very low. If you are going to invest you should be comfortable with some level of risk otherwise you are better off putting your money in the bank and wait to earn interest.

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