How To Invest Your Money When Interest Rates Are Low

Saving Money and Investing on the Financial Spectrum

When interest rates are low, individuals often have trouble deciding where they should invest their money. Fortunately, even when interest rates are low, three proven investment options still allow individuals to make money. These three options allow for the best possible benefit of higher returns in economic times like these.

Individual Stocks

When interest rates have taken a nosedive, smart investors should pick quality stocks that will likely provide a high annual yield. Stocks have to be studied like any other type of investment. The smartest investors will conduct thorough research when it comes to deciding exactly which stocks they should invest in. Individual stocks can also throw off high dividends to the stock investor who makes wise selection choices. In bad economies, tech stocks and utility stocks usually tend to do well despite market conditions.

Real Estate

Individuals with disposable incomes who are looking for the best ways to invest should consider real estate investing as an addition to their personal finance portfolio. In today’s market, investors who have good credit and some extra cash can purchase properties at a fraction of their appraised market value. Then they can then rent them out to regain their investment or try to sell them at a higher price after some improvement work has been done to increase property value.

Investing in real estate can also be done through real estate investment trusts, or REITs, if the investor doesn’t want to physically own and maintain specific real estate properties. Ask a qualified financial adviser more about investing in these high yielding REITs.

Mutual Funds

Mutual funds can also offer high yields when interest rates are low. These funds function as an accumulation of various stocks and bonds that usually involve less risk than investing in individual stocks. They’re professionally managed by highly experienced mutual fund managers. Mutual funds can easily provide double digit returns during periods of low interest rates.

Depending on what investment approach investors want, they have a number of options to consider before putting money into mutual funds, including global funds, small and large cap funds, tech funds, income funds, or growth funds. Potential investors should also do some preliminary research by getting a prospectus from the investment firm offering the particular mutual fund.

Before individuals choose which investment method is best for them, they should always read the fine print carefully to make sure that they understand all of the potential benefits and risks that will be involved with the investment. While investing and making money is exciting, losing money due to inattention should be avoided at all costs.

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