It is quite risky and very often it is nearly impossible to get a 10-15% monthly return consistently. Safe investment, especially, do not pay such high returns in a one month period. However, there are a few strategies that can theoretically provide steady income with different level of risk. It is now possible to consider the possibilities of obtaining revenues and at the same time being more careful with the risks.
The Greatest Investment Plans for Consistent Earnings
Table of Contents
Peer-to-Peer Lending (P2P)
Overview: P2P lending platforms directly bring together borrowers and investors thus cutting out the middleman – the banks. Interest can be earned through placing money in a pool that is lent to individuals or small business.
Potential Return: Still, some P2P platforms claim that their average yearly profit can reach 10% and more. But these are normally done over a year.
Risk Level: Medium. Lenders are likely to face the problem of loan default by the borrowers, especially if the latter had no credit history.
Income Stocks and Real Estate Investment Trusts
Overview: Dividend stocks and real-estate investment trusts are other means of generating semi-regular cash payments. REITs provide investors with dividends from rental incomes or profits obtained from real estate investment while stock provide investors with returns, either in the form of dividends that may be paid on a quarterly or monthly basis.
Potential Return: Dividend yields differ but average at 3%-6% for each year. But, with reinvestment, they can assist you achieve compounded gains over a certain period.
Risk Level: Low to Medium. So although not as sensitive to change as growth stocks, both REIT and dividend stocks are influenced in some ways by the market.
High-Yield Bonds
Overview: High-yield bonds are also referred to as ‘junk bonds’, Bonds that are issued by low-ranked businesses in the market but will pay high yields to the investors.
Potential Return: High-yield bonds can provide annual returns of up to 8-12% and not more than 10-15% on monthly basis.
Risk Level: Medium to High. Bond value can be lower due to the problems of the company that issued bonds or if the company is in default.
Investing or earning through staking of Cryptocurrencies
Overview: Cryptocurrency staking refers to holding coins in a wallet to contribute to a blockchain network and receive a profit. Yield farming, on the other hand, means depositing your coin for lending on decentralized markets.
Potential Return: Many of the staking and yield farming projects have monthly returns of 10-15% but these are very volatile.
Risk Level: High. Cryptocurrency investments are also very risky and you can even lose your investment if the prices of the cryptocurrencies fall. This means that it is always important to do your homework before you stake or yield farm.
This includes Forex Trading and Leveraged Products
Overview: The foreign exchange and other leveraged products are capable of earning high profits by benefiting from small fluctuations in the exchange rate or other assets.
Potential Return: It is possible for professional traders who have been in the business for sometime to achieve high returns, these are normally not steady and it is possible to make losses.
Risk Level: Very High. Trading on margin is a complex activity that should be used with caution because it may result in huge losses.
Robo-Advisors with Aggressive Portfolio
Overview: Some of the robo-advisors provide portfolios based on risk profiles. Selecting an active portfolio means concentration on high-risking assets to get higher returns.
Potential Return: The robo-advisors may make 7-10% per annum and in some cases even more depending on the market they are operating in. It is almost impossible to achieve monthly returns of 10-15%.
Risk Level: Medium to High. While these portfolios are automated, they are affected by market fluctuations especially with high risk investments.
The Role of Diversification and Risks
Although getting 10-15% per month is quite improbable for safe investments, diversification can bring the balance. Here are a few key tips:
Never Invest All in One Asset: Invest your money in different categories of assets in order to minimize the risk.
Use Dollar-Cost Averaging: This strategy caters for volatile price movement as a DEFINED fixed amount is invested from time to time.
Regular Monitoring: Closely monitor your investment portfolio in an effort to possibly sell a particular stock due to changing conditions, or perhaps due to reaching for a certain goal.
As a result, by investing in safer assets and simultaneously using higher risk/higher return strategies, as well as frequently reviewing the investments performance, you can develop a sound investment program that will match your planning objectives and at the same time not be at high risk.
Conclusion
Getting a safe monthly return of 10-15% is not an easy task and to achieve this target one has to take more risks. Pen before investing in such instruments as P2P lending, buying high-yield bonds, or staking cryptos, first assess your risk appetite and your knowledge of investing. Portfolio diversification and concentration on high growth investments will enable you achieve your financial freedom without undue risk and in a planned manner.
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