Trends In Investing For Entrepreneurs In South Africa

Trends In Investing For Entrepreneurs In South Africa

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To help new entrepreneurs, including those who live or work in South Africa, this is a list of some of the latest trends in investments.
investments

When entrepreneurs have excess cash, they look for ways to invest it. Most of them believe in diversified portfolios. But new investors might not know what they can choose for their portfolios.

That’s why it’s important to read binary options reviews and listen to financial advisors. Financial experts are there to help you find out your best option of where to put your money.

Related: Want to Get Rich? Know How to Diversify Your Investments

Moody's RCA property graph

Real Estate

According to Seeking Alpha, foreign investment in commercial real estate is increasing at a great rate. Foreign investors represent almost 20 percent of the total commercial real estate sales volume in the United States.

Buying property here is attractive to South Africans and other entrepreneurs because the U.S. economy is strong and stable compared to other countries around the world.

Transactions are more visible in the United States unlike other countries. Investors are drawn to high capital returns on their investments and low interest rates.

While they are buying in New York, Washington and Los Angeles, secondary markets, such as Denver, are also attractive to foreign entrepreneur investors.

Mutual Funds

Investors always like mutual funds. However, picking the right mutual fund requires expertise in the field, but you can start with funds that offer a little bit of everything.

If you want blue chip stocks, utilities, companies that are on the verge of skyrocketing, some risky ventures, some bonds and more diversity. Ask your advisor for help in picking the right mutual fund.

Exchange-Traded Funds

The Journal of Financial Planning reported that exchange-traded funds have surpassed mutual funds in popularity. About 80 percent of financial advisors polled use or recommend ETFs for their clients as an investment strategy.

ETFs have increased in popularity since 2006 as an investment that will produce high returns. In 2006, only 40 percent of surveyed financial planners recommended ETFs.

Investors trade in ETFs because they are inexpensive, offer tax efficiency, offer flexibility in trading, show transparency in holdings, and allow for diversification. Because you can purchase ETFs online, foreign investors and South African entrepreneurs are attracted to them. Like mutual funds, you can make a lot of money investing in ETFs.

Related: Enko Education Investments Matches Money With Passion

Stocks

Despite news of stock market downturns, investing in stocks remains a viable investment option for entrepreneurs.

Over the long-term, stocks go up and down, but they provide strong earnings if you don’t panic when the stocks drop. However, you want to avoid stocks that have consistently stayed low. These aren’t likely to climb again, experts say.

Look for stocks that are more like the tortoise in the Hare and Tortoise fable. The stocks that consistently increase without huge variations are more likely to net you huge gains. Also, don’t jump into selling off your stocks when the market crashes or your stocks drop. When the market crashes, buy some bargains. When your stocks drop, hold them to see what happens a year later.

Market realist

Commodities

There are many good options including oil and gold. These are among the two most commonly traded commodities. This is mainly because other commodities take skills to invest, but when you invest in them correctly, you will gain significant money from your investment.

Oil prices are currently low; however, if you invest in oil, you can expect a turnaround in the near future. The price of oil won’t stay low forever. If you buy gold coins or bullion, your investment will always be worth something. Many investors buy gold bullion to hedge against problems with other investments.

Binary Options

Binary options will net you either a fixed monetary amount or nothing at all. You can invest in the asset-or-nothing or the cash-or-nothing type of binary options.

Related: Is Search Marketing Still Worth Investing In?

To understand how binary options work, you should speak to a binary broker who can help you with your investment. Binary options have become popular in the last few years and are growing in popularity because they are low cost to both the entrepreneur and the trader.

They have also garnered respectability for investors. When you invest, you purchase the options on stocks, commodities, indexes, foreign exchange and other derivatives. If you bet on your option correctly, you receive the fixed amount, making them lucrative for investors.

These are some of the current trends in investing in SA. If you’re looking for ways to make money, you should pick one of these options.

Mar 8, 2016
Luis Aureliano, a business writer and financial analyst. With over 15 years of experience in global finance and an MBA in economics and management, Luis’s areas of expertise include business, marketing, communications, personal finance, macro economics, stocks and emerging markets.