For general advice and to help answer people with the question “Is it right for me to take a loan for an investment opportunity “. The answer isn’t an outright “Yes” or “No”, the answer is rather logical, you should weigh the options, and be very sure of what you are going into. If the risk of the investment is high then kindly let go of the thought of the Loan. While you might still be thinking of what to do, I’ll give you some types of investment you don’t need a loan for especially in this new decade.
Certificate of Deposit(cd)
This is a minimum risk investment where you give a bank a specific amount of money for an agreed duration of time, and when the time is due, the Principal amount of money you invested will be paid back to you including an agreed interest. However, in this type of investment, the longer the period of time, the more your interest accumulates, so you might want to invest an amount of money that you wouldn’t be itchy to collect back. In case you might be wondering “What if the bank folds up during this period?”, Well, CDs’ are usually insured which means you can recover your money from the insurance of the bank in a case where the bank folds up. One more thing you need to note about CD’s is that premature or early withdrawals attract penalties unique to the agreement.
Cryptocurrency
Investing in cryptocurrency is becoming a fairly lucrative kind of investment, and one of the advantages is that you could buy as much as you can afford and start trading. As long as you understand the ethics of this particular type of investment, you’ll know how to maximize your profits. Basically, Crypto Currencies are digital currencies that mainly used for online trade and retail. The most popular cryptocurrency in the last decade was Bitcoin and over the years it has gained much relevance and relative stability. You must note that the values of cryptocurrencies usually fluctuate from time to time.
Agriculture
Reading this subheading may have made you chuckle a bit, but the truth is, if you live in a region where the demand for agricultural produce is higher than the supply, you might want to consider this field. To opt for such an investment, you need quite a lot of research about what exactly you will be investing in. Meanwhile investing in agriculture doesn’t necessarily mean that you’ll have to put on your farm boots and gloves and work in a farm, there are different ways to go about it. You can consider applying for a grant to do this business, and employ people to cultivate your land (if you already have one). You could also collaborate with a local farmer and see ways you could commercialize his farming with your funds, hence coming to a business agreement. This type of investment could be very tasking but if you’re able to identify the lucrative parts of this sector, you might just earn yourself a stable income years later.
Stocks
Stocks are the most commonly known type investment, probably because of its simplicity. Buying a Stock means that you are buying a share of ownership in a publicly traded company. Your returns come in when you sell off part or all of your bonds. Although most times the value of the Stock may drop because of trade factors, but the simplicity of this type of investment makes it worth it.
There’s nothing wrong or illegal to take a loan for investment, especially when you are creditworthy of it, but a lot should be put into consideration. In a case where you have a well-cut plan, you could apply for a grant instead or consider using what you have to invest in the above mentioned.
PEOPLE ALSO READ: 6 Compulsory Games Your Kids Must Play to Become Great Investors
