The Best Investment Opportunities for 2024

Roberto Rivero Mar 21, 2024

The financial world is full of opportunities to invest and potentially generate profit. With so many different instruments to choose from, it can be difficult to find the right opportunity for investment.

In our article, we have compiled a list of some of the best investment opportunities to potentially grow your wealth in 2024. We will explain each investing opportunity in detail and provide a few examples to help get you on the right track!

Stocks

We start our list with the opportunity which first springs to most peoples’ minds when they think of investment – stocks.

Although stocks are a fairly straightforward concept to understand, they should not be approached as such. When you purchase shares in a company, you are essentially acquiring a small percentage of that company. The value of your investment will be directly tied to the future success, or failure, of the company whose shares you purchased.

Therefore, when considering investment opportunities in the stock market, it is important to conduct a thorough analysis of the company in question and evaluate whether buying their shares is in your best interest.

Here are a few important factors to consider when assessing a stock investment opportunity:

Financial Results - Every listed company regularly publish their financial results. Don’t just look at the most recent ones, but have a deep look over the past few years to get a good idea of the shape the company is in. Is it growing? Stagnating? Or in decline? Some important metrics to consider are revenue, net income and earnings per share (EPS).
Industry - What industry does the company operate in? Research this industry and familiarise yourself with it, in particular its future prospects and any potential challenges ahead.
Competition - How much competition does the company face within its industry? Is it better equipped to succeed than its competition? If not, then you may be looking at the wrong company.
Share Price - Is the share price an accurate reflection of what your research has told you about the company? Share price is determined by the levels of supply and demand in the market - meaning that, occasionally - when demand outstrips supply, a company’s shares can sell for more than they are really worth. Of course, the opposite is also true. Try to avoid paying over the odds for “trendy” stocks.

Stocks represent a very broad investment opportunity, as you can purchase shares in companies from many different sectors and from economies all over the world.

Just as there are many different types of stocks to choose from, the approach one takes towards the stock market can be just as varied. There are a number of strategies used by investors, such as value investing, growth investing and income investing.

Bonds

The next investment vehicle we will look at are bonds, which, especially when compared with the previous entry on our list, represent one of the more stable opportunities for investment.

Bonds are fixed income investment opportunities, where the investor essentially lends money to the bond issuer. In return, the bond issuer undertakes to pay the investor a fixed rate of interest for a predetermined period of time. Once that time comes to end, the bond matures and the issuer is obliged to repay the original loan amount, the principle, in full.

Bonds are mainly issued by governments and corporations and, although they are viewed as a comparatively safe form of investment, they are certainly not without risk. As with any type of debt, there is the risk of default. The level of this risk depends entirely on the issuing body and has a knock on effect on the bond’s yield, with lower risk bonds having lower yields and vice versa.

Bond investment opportunities tend to be popular with investors who have a small appetite for risk. However, their predictability and stability can make bonds a valuable addition to a well-diversified portfolio.

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Exchange-Traded Funds and Mutual Funds

Unlike stocks and bonds, where each investment will provide exposure to one company or a single bond, Exchange-Traded Funds (ETFs) and mutual funds provide instant diversification across a range of assets with a single investment.

Both types of funds function by pooling investor money to buy a basket of assets, such as stocks and bonds. These assets are chosen to represent a specific sector, stock index or economy and can be either actively or passively managed. An actively managed fund attempts to outperform its chosen market by selecting the best instruments in that sector, whereas one which is passively managed seeks merely to mirror the market.

These qualities can make ETFs and mutual funds one of the best investment opportunities for beginners or investors who do not have the time or expertise required to scrutinise individual assets.

Whilst ETFs and mutual funds are similar they do have several differences, the most important of which is how they are bought and sold. Investors purchase shares in mutual funds directly from the company which manages the fund, or through a brokerage firm, and, whenever they decide to liquidate their position, they sell their shares back to the fund.

ETFs, on the other hand, are bought and sold throughout the day on stock exchanges - in exactly the same manner as shares.

Vanguard S&P 500 UCITS ETF

ETFs and mutual funds can be based on just about anything, but funds which passively track stock indices have grown enormously in popularity in recent years.

Such funds will hold shares in all the companies which make up the underlying stock index. For example, the Vanguard S&P 500 UCITS ETF (VUSA) passively tracks the S&P 500 stock index.

Therefore, by investing in this ETF an investor can gain exposure to 500 of the largest companies by market capitalisation in the US.

Commodities

Investment opportunities are not limited to stocks and bonds, there are many other asset classes from which to choose from. Commodities are one such example and represent an interesting investing opportunity for those seeking to diversify their portfolio.

The most popular commodities for investment purposes tend to be precious metals, in particular gold, but there are many others to choose from – copper, crude oil and cotton to name a few.

The popularity of investing in gold lies in its quality of being a safe haven asset – meaning that its value tends to remain stable, or even increase, in terms of economic uncertainty. Therefore, gold may offer an element of stability to a portfolio, as it tends to thrive at the same time at which the stock market is floundering.

Whilst it is possible to buy physical gold, doing so poses a number of logistical issues, not least of all storage. Therefore, investing in a physically backed gold ETF might be a more convenient prospect for most investors.

Property

Property presents another investment opportunity for those looking to invest their money in an asset class which is independent of the stock market. Property is a tangible asset and is something that, regardless of what is going on in the world, people will always need. Although, as with any other market, the property market goes through peaks and troughs.

For those who do not have sufficient capital to buy property, there are numerous ways of investing in property without purchasing a house. One of the most popular ways of doing so, is through Real Estate Investment Trusts (REITs).

A REIT is a company which uses a pool of investor money to acquire or develop, and subsequently manage, various income generating properties. Consequently, REITs allow investors to enjoy some of the benefits associated with owning income generating properties without many of the associated headaches.

In the UK, companies which qualify to be a REIT are exempt from corporation tax on its property rental business as well as from any capital gains tax incurred when selling these properties. One of the conditions of receiving such preferential tax treatment is that a REIT must distribute at least 90% of their tax-exempt profit to shareholders in the form of a dividend.

Final Thoughts

Hopefully, after reading our article you have a better understanding of some of the best investment opportunities available to you in 2024.

Remember that it is not necessarily a question of choosing just one of these investing opportunities, the most successful portfolios are often ones which are diverse, holding a blend of different assets.

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