Over time, investing can be a good way to increase your wealth, but it must be done carefully. There is no one right approach to investing, so keep that in mind as you weigh your options. The investments that one person makes may differ from those of another. Even the outcomes can vary depending on several variables, including market volatility.

How do you decide where to invest your time and money, then?

According to Sigita Kotler, CEO of Nectaro, "When answering this question, it's important to note that investment outcomes can vary significantly based on factors such as market conditions, personal risk tolerance, and investment expertise."

Consider your particular situation, income, goals, and risk tolerance before making any investments. When you've finished, you can start making investments in the items that suit you the most. Here are the best investments to think about, each with its amount of risk and potential returns, keeping that in mind.

Real Estate

You have a variety of options when it comes to investing in real estate. If you prefer the more conventional approach, you can buy real estate and sell it for more money a few months or years later. Alternatively, you might invest in rental houses and profit from doing so.

In addition to the property's capital growth, rental leases in real estate are advantageous, according to Raymond Quisumbing, a qualified financial planner with Bizreport.com.

Every month that you have a tenant is another month that you can make more money and, if you have a mortgage, pay it off. This may also be a fantastic method to increase your residual income in the future.

Real estate investment funds (REITs) are a good option if you prefer a less active investing style. REITs are businesses that already own real estates, such as hotels or shopping centers, and that distribute dividends.

Startups or Venture Capital

Venture capital is used by many entrepreneurs to help them find investors so they can expand. Venture capital is simply the investment of funds or resources in a startup or small business that has the potential for rapid growth but requires further finance to be successful. The investor often receives some kind of equity or ownership in the business in exchange for the initial investment.

If you can find viable businesses with game-changing concepts and good development prospects, investing in early-stage startups or venture capital funds has the potential to yield substantial rewards," said Kotlere.

Growth Stocks

Growth stocks are essentially firm shares that are anticipated to increase in value more quickly than the market's average rate. Growth stocks don't frequently pay dividends, but when shareholders sell their shares in the future, they may realize capital gains.

According to Kotler, making investments in fast-growing businesses with solid fundamentals and bright prospects can yield large profits. But it's crucial to fully investigate and comprehend the underlying company, market trends, and potential hazards related to specific stocks or projects.

Index Funds or Exchange-Traded Funds (ETFs)

Index funds, a kind of mutual fund, or exchange-traded funds are ideal options to take into consideration if you're searching for a long-term investment with low upfront costs. Both choices are thought to be relatively low risk and assist in portfolio diversification.

It's not what anyone likes to hear, especially from a financial planner, but investing should be dull. Financial advisor Jen Reid, who founded BASE Financial Planning, made this statement. "Mutual funds and exchange-traded funds (ETFs) will be the greatest investments because they monitor the market and provide average returns. The time spent in the market and allowing compound interest to work will create value.

Peer-to-Peer (P2P) Lending Platforms

You can lend money to people or businesses on a peer-to-peer lending platform as an investor to assist them in achieving their objectives. In return, you can charge interest on any loans and might get a better return on your investment overall.

However, P2P lending is not for everyone. One thing you'll need is a high level of risk tolerance. Before deciding to collaborate with a platform or potential borrower, you must thoroughly investigate both.

P2P lending platforms frequently have a larger return potential than conventional fixed-income investments, according to Kotlere. "I want to emphasize how important it is for investors to pay attention to a platform's licensing status and the country from whence the license was received. The long-term security of investments is substantially impacted by these variables.

Diversifying your portfolio is one approach to reducing the risk associated with peer-to-peer lending. Additionally, only lend what you can afford to lose.

Corporate Bonds

In essence, a corporate bond is a debt you give to a company. That business consents to lend money in return for the payment of interest on the lent sum. In most cases, they also consent to return the bond's principal amount at maturity.

Particularly when compared to alternative options like government bonds, corporate bonds might be riskier. They might, however, also produce high yields.

Diversified Portfolio

The potential for long-term growth can be increased and risks can be reduced by creating a well-diversified portfolio, according to Kotlere. You can profit from numerous market trends by spreading your assets over a variety of asset classes, including equities, bonds, real estate, P2P, cryptocurrency, and commodities.

Financial Coach and CPA

Working with a financial coach and a Certified Public Accountant (CPA) could be beneficial as you progress toward long-term prosperity, even though the benefits might first seem a little less obvious.

For instance, you can learn the finest investing practices from a financial coach as well as the best investments based on your needs and objectives. Investing in a financial coach, as opposed to a financial advisor, will teach you how and what to invest in, according to Reid. "I advise working with a financial coach who will instill confidence in you and give careful consideration to your inquiries!"

You can get financial and investing advice from a CPA. "An overlooked, but obvious place to invest is in a great CPA; you will want a CPA that makes sure that you are taking advantage of all the tax codes," continued Reid. If you engage with a CPA who is knowledgeable about your financial status and tax laws, you may be saving a significant amount of money and using it for other investments.

（Writer：Lily）