3 Best Ways To Invest Your Money - Getting Outstanding Returns

The aim of investing is to get a return on your capital within a given time frame. The shorter the time frame, the greater the return, the greater your compounded result will be each year. Investors focus on getting the greatest possible compound return each year with the least possible risk.

This risk factor defines the quality of an investment. A quality investment is, of course, one where you actually get your initial capital back plus a percentage margin on top of that capital. So the best ways to invest money are those where your risk is very low or equal to zero.

There is no such thing as a zero risk investment, there is always some risk. Even an investment in the form of putting your money in a bank has at least a small element of risk. This is considered by most investors to be the safest investment of all because a bank is a specific type of business that is actually backed and guaranteed by the government.

So a bank deposit is the best way to invest your money if you have several million dollars. The single-digit return makes it impractical as a source of passive income for investors with less than at least a million dollars, because the return is too small to live on. But for large capital accounts, it's still the safest place to park money.

The next safest investment is real estate, because unlike the stock market or mutual funds, your money leaves your hands, but you receive something of tangible value in return. This is very important because if you compare it to the stock market, you get nothing more than a receipt for an investment in shares. This receipt is a recognition, but it has no value in itself. The actual paper document that you receive has no value.

That means the risk is out of your hands to control it. You have transferred the money to someone else and you no longer have the ability to control the risk. Control and risk are very closely linked, so when this control is relinquished, the risk factor increases significantly.

The last best way to investThe Cash Gurus is a variation on real estate, but it can also be used even with small capital accounts. The upfront costs of real estate are large, you need a deposit, you have legal costs and other associated expenses. However, you can also invest in investment properties that match your current level of start-up capital. For example, you can quite easily buy ordinary goods that are mispriced and sell them at a profit. This kind of transaction can be done as quickly as in a week, and the returns can be quite high. This ability to quickly turn around an investment has powerful ramifications on a portfolio. If you can buy something for $100 and sell it for $140, that's a 40% increase, and if you can do that in a week, you have a pretty good investment model if you can maintain those levels of compounding. $100 turns into $1 million in just 28 such transactions.