Everyone who looks to invest in financial assets looks at investments that offer fast growth and are low risk. However, we live in a world, where higher risks translate into higher growth and lower risks mean more slow and stable growths.
The year 2020 was marked by the Coronavirus pandemic and economic recession affecting developed countries and their economies. 2021 promises to be the year where the world is expected to make up for the losses.
With the vaccine very close to us, global markets are seeing a bounce back. While we still would have to wait till mid-2021 for complete recovery, it would be safe to say that we are well on our way.
In this article, we speak to leading investors and financial analysts and ask them about some top investments with high profitability margins in 2021.
List of the Top 5 Investment Areas in 2021
Bitcoin and other cryptocurrencies cannot be ignored anymore by major investors because of their strong performance. They have comfortably outstripped any other asset area even during the worst phases of the pandemic. This has allowed investors the confidence to grow.
One of the strongest criticisms of cryptocurrencies like Bitcoin was high volatility and price fluctuations. With institutional investors and banking firms on board, this criticism has given way to stability. The Crypto Revolt is leading investor interest successfully into 2021.
2. Direct Equity-
Investing in the stock market at this juncture, might not be feasible for everyone. With the stock markets still recovering from the shock of the pandemic, injecting direct equity would be a better option for investors. The start-up industry is growing at an alarming rate.
There are a number of exciting new start-ups looking to scale up their operations and want capital infusion. If you are an investor who wants to be a part of something by building it up from the ground up, you can look at investing in start-ups for equity.
3. Government and Fixed Asset Investments-
If you are an investor show prioritizes safety and security in your investments you should go for fixed asset investments and government schemes. For example, Provident Funds, Fixed Deposits, and Pension Funds are considered to be low-risk in almost all countries.
Some investors cannot afford to keep checking stock process or crypto valuations. They are looking for fixed growth rates, which they do not have to worry about on a day-to-day basis. For these investors, government schemes and other fixed investment areas are the best.
4. Real Estate-
Every time the real estate sector experiences a slowdown, it bounces back even higher. While 2020 was the year the sector slowed down because of the pandemic, 2021 will be the year it starts registering phenomenal growth.
Most people who were waiting for the right time to invest in the sector should look to do so at the end of 2020 or in early 2021. With the economy showing signs of a massive resurrection, demand for real estate is going to hit an all-time high in 2021.
If you are someone who can stomach losses and winnings in rapid quick succession, 2021 should be a year for you to try out the stock markets. Many experts who have been hesitant about stocks feel that 2021 is going to record a strong showing for the markets.
Governments too will look to pull investments in the form of FDIs and ease regulations to aid economic development. Diversifying your investment portfolio with stocks and safer investments will allow you to minimize your risks and maximize your growth volumes.
The Final Word
Investing strategies in 2021 are going to see a drastic change from the ones in 2020. While this year was all about surviving and sustaining, 2021 is going to be about rapid growth and development. Do you think you would want to add some more investment areas to the list above? Let us know your thoughts in the comments section below.