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9 Investment options for entrepreneurs

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Once you’ve built a successful business, you might find that you’re interested in investing your money. As a busy entrepreneur, you won’t necessarily have the time to get involved with lengthy investment projects. What you need are streamlined options, suitable for beginners. It’s best to look for opportunities that aren’t too time-consuming. Lucky for you there are plenty of those kinds of options out there. To get started today, check out these nine investment options for entrepreneurs.

1. Peer-To-Peer Lending

Peer-to-peer lending permits individuals to provide loans to their peers; without the input of a financial authority. Sometimes the system is referred to as social lending. When you become a P2P lender, you can create a portfolio, by building up small loans. P2P lenders earn approximately 10% on returns, by lending to small businesses or individuals. For entrepreneurs, P2P lending can be an excellent side project, which doesn’t take up too much time.

2. Certificate of deposit

A certificate of deposit is a financial product that’s offered by credit unions and banks. With a certificate of deposit, you’ll earn a fantastic interest rate, by leaving a lump-sum in the account, for a set period. The account holder will usually receive a penalty if they need to take out money before the time-frame is up. A CD is a great way for entrepreneurs to grow their money. All you need to do is choose the right account, and leave your funds untouched.

3. Index funds

An index fund is a type of mutual fund or ET fund. Index funds require a portfolio that matches, or tracks, the factors of a particular market index. These funds are advantageous to access great market exposure and minimal operating costs. Regardless of market conditions, index funds follow a given benchmark index.

Index funds follow a passive investment approach, tracking the market index, instead of focusing on portfolio management. As a result, index funds are a great starting point for entrepreneurs with little experience.

4. Balanced funds

Balanced Funds are a type of mutual fund, consisting of a stock and a bond. Each component of a balanced fund exists within a single portfolio. This type of fund is balanced between equity and debt, the aim is to grow the fund and obtain an income. These mutual funds are ideal for investors who want safety and capital appreciation. With a balanced fund, you’ll typically be investing different assets, generally, these will be both low and medium-risk bonds and stocks. There are several advantages, such as low risk, a diverse portfolio, and low volatility.

5 . Robo advisors

A Robo Advisor is an online platform that provides financial planning support and small investment opportunities. These tools use algorithms, as opposed to human input, to offer a variety of investment options. First, a Robo-Advisor collects info from the client, to visualize their financial situation, and understand their aims. Next, the RA uses this data to provide advice and make low-scale automatic investments. Robo Advisors are perfect for busy entrepreneurs because they invest on your behalf. RAs are also perfect for beginner investors as these platforms usually involve small and low-risk investments. Investment apps work similarly, and there are plenty of different options to choose from.

6. Real estate

Investing in real estate is a great option for entrepreneurs, so long as you take the right approach. Running a business doesn’t leave you with much spare time, so it’s advisable to take a passive income approach. Consider purchasing a property as a buy-to-let project. You can then hire a property management company to find tenants, and deal with the admin. There’s plenty of money to be made in real estate providing that you compare mortgage rates before finalising and choose the right property in the right location.  You’ll also need to understand which tenants you are targeting. Real estate investment is about finding the perfect homes for sale, to generate the largest ROI possible. Property flipping is another great way to make money in real estate, however, the process can be a little more time-consuming, (depending on your approach).

7. Day trading

Day trading refers to a system of share trading, an individual purchases and sells online, completing both transactions within one day. The idea is to earn money from price fluctuations. These are small price movements within highly liquid currencies or stocks. There are several strategies you can use for day-trading, a few examples include neutral market trading or swing trading. Shares tend to be purchased at low prices, meaning day trading is a great starting point for beginner investors. You don’t need much specialist knowledge to get started, a little online research is all it takes.

8. Cryptocurrencies

Cryptocurrency is a type of digital currency, which uses blockchain technology. Digital currencies do not involve input from central authorities or governing bodies. The idea is that individuals can make payments using digital tokens. Bitcoin is the most popular cryptocurrency, yet there are several other options including Ethereum, and Ripple XRP. Investing in cryptocurrency is appealing to entrepreneurs because these investments offer the potential for high returns.

9. Roth IRAs

Roth IRAs are a great option for entrepreneurs who need a retirement account. With a Roth IRA, you open up the possibility of many investment opportunities, including mutual funds, and exchange-traded funds. With the help of a Roth IRA, entrepreneurs can grow their investments, tax-free. Remember, the idea of these accounts is to save for your retirement. You’ll find that you’ll have limited access to the funds before you retire. Regardless, these accounts are an excellent way to build up your funds over time.

To make the most of your earnings, and grow your money, there are plenty of investment opportunities to try. It can be helpful to focus on just one or two projects initially until you get into the swing of things. Start with projects that allow you to earn a passive income, so it’s easy to remain focused on your business.

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