Before the inception of the COVID-19, interest rates have been low. The advent of the pandemic that shook the world only reduced further the interest rates across every sector. Financial institutions, especially banks, are not exempted. However, the fact is that there are certain investments that tend to yield higher ROI at minimal risks. The purpose of this article is to highlight the reasons why you should invest and the 9 best low-risk investments for high returns.
In today's world, you can make money either by earning an income (as a self-employed or by working for others) or by investing your assets to grow your fortune. Investing in stock, dropshipping, print-on-demand, real estate, mutual funds, bonds, precious metals, or a combination of some or all of the above is a great way to earn extra money. The increased returns come in the form of dividend income, business sale, or an increase in the value of the investment (e.g. real estate). If you have a busy schedule or you want to pick up a side business, making low-investment small-business investments is a great option for retailers or anyone.
6 Reasons Why You Should Invest
The best time to plant an Olive tree was 25 years ago; the next best time is now. If you keep postponing why you need to invest, you may not invest at all. While you wait for the best time to invest, you may wind up missing tons of opportunities. The truth is there is no best time to invest – the best time is now! If you need motivation before you start to invest, consider the following reasons to invest.
1. You still have the time to invest now. There is no appropriate time to invest in this world. The earlier you start to invest, the better for you. Not investing means you're prepared to work harder not smarter.
2. What you invest makes more money for you. The concept of compound interest works well when it comes to investment. Even if you don't work, if you invest, your money will work for you.
3. Nobody who invested ever regretted doing so. They only wished they had invested earlier. This is because of the positive results they enjoy.
4. Investment gives you control over your future. Your investment can always cater to any unforeseen contingency.
5. It provides financial security. During the COVID-19 pandemic, many people lost their jobs. Only those that had investments were able to survive those horrible moments.
6. It is easier to invest now than before. Back then, you can only invest in stock and real estate. Now, there are several ways that you can invest in. In this article, we shall discuss nine low-risk investment ideas.
9 Best Low-Risk Investments That Bring High Returns
What are low-risk investments? This kind of investment is perceived to have a very slight chance of losing some or all of your money. These nine examples of low-risk investments can help boost your returns more quickly than saving in the bank. Being low-risk investments means there is a small tendency for you to lose your money. But if done the right way, you may not lose any money at all.
1. Dropshipping
Dropshipping is an easy business model to start with. It comes with low risk and a high ROI. Traditional e-commerce requires that you stock an inventory put effort into marketing, provide excellent customer service, get retail space, pay for warehousing, and fulfill orders. Many people are discouraged and end up not investing in a business with such high startup costs. But dropshipping eliminates a large chunk of these commitments. Dropshipping is a fulfillment model where a retailer gets an order, transfers it to a third-party supplier who packages and ships inventory to the customers on the retailer's behalf. You don't need to handle inventory – you just get customers and contact your supplier for order fulfillment. Here's how it works:
· Find a profitable/evergreen/trending category and curate products.
· Look for a reputable supplier – you'll find them on SaleYee.com or use the Oberlo app.
· Create an e-commerce website to display the products of your interest.
· Use the import tool on SaleYee.com or your chosen platform to import products with high-profit margins on your store.
· Advertise your store using free or paid methods of advertising, including, SEO, blogging, Facebook/Instagram Ads, etc.
· Get orders from your customer and send them to your supplier.
· The difference between your price and that of your supplier is your profit. For instance, your supplier offers to sell 1 catnip for $1, you can choose to sell that product in your store for $3, the difference of $2 is your profit.
Dropshipping is one of the best low-cost businesses to start. It is scalable and comes with high returns, yet, you will be responsible for your own marketing and customer service.
The print-on-demand business model, like the dropshipping model, allows a third-party supplier to take care of inventory, shipping, and order fulfillment. It is quite different from dropshipping in that it focuses on your own designs and not what your supplier offers to dropship. This low-risk investment is popular among products that can be customized including, t-shirts, bags, phone cases, hoodies, hats, canvases, and anything that you can imprint your creativity on.
If you have a passion for this but cannot print designs by yourself, you can hire freelance designers on Upwork and Fiverr. Or simply use print-on-demand software; there are thousands of templates waiting for you to explore for your new design. Here's how you make ROI from print-on-demand: While you pay for the item in bulk (which is less expensive), you will sell per product (which is more profit for you). The advantage you have is that you don't get to pay for the item until there is an order for it.
3. Pet Business
Starting a pet business is among the top low-risk high-yield investments on the internet today. Over 76% of homeowners own either a dog or a cat. The pet industry is filled with opportunities waiting to be tapped by you. The industry is worth about $100 billion, so that shows there's a piece for every investor. You can decide to dropship products like toys, foods, etc., or offer pet services such as pet sitting, dog walking, bathing, grooming, etc. This type of investment requires little to start with and at very low risk.
4. Fixed Annuities
In fixed annuities, an investor is allowed to pay a large sum of money in exchange to get paid over a set period, at a higher rate than the initial investment. The major downside to a fixed annuity is that you may likely be penalized if you want access to all of your investment (money) before the maturity date.
5. IMFs (Income Mutual Funds) and UITs (Unit Investment Trusts)
IMFs and UITs are ideal for investors seeking higher yields. There are hundreds of IMFs and UITs available today, with all coming with numerous advantages and disadvantages. Income funds are funds that invest in utility stocks which may be grown into UITs. You can read more about this kind of investment before putting your cash or assets here.
6. Sell Handcrafted and Homemade Goods
If you can make DIY products such as candles, pottery, sauces, soap, gift items, etc., you can start up an online store and start making money immediately. eBay, Amazon, and Etsy are popular online marketplaces to sell your listings.
7. Preferred Stocks
Preferred stock provides the dependable income payments of bonds and also offers a higher return from common stocks. Simply, they buy at a lower price and sell at a slightly higher price.
8. Corporate Bonds
Corporate bonds are for those who are prepared to accept more risk for higher returns. Corporate bonds will yield more than the value if you allow your bond to reach maturity.
9. Brokered CDs
Brokered CD is ideal for investors who cannot afford to lose a dime. Their rates may not be as high as utility or preferred stocks; however, brokered CDs can be used to attract more personal bankers to yield higher returns.
Start Dropshipping with SaleYee.com
In the previous heading, we iterated that dropshipping is one of the easiest and most lucrative ways to invest on the internet. However, you still need to start with a reputable dropshipping platform. SaleYee.com is a wholesale dropshipping platform that offers quality dropshipping products for retailers. With the SaleYeeDropshipping Platform, you can choose from over 20, 000 profitable SKUs from top-selling categories, including kitchenware, furniture, toys, musical instruments, garden, lighting, etc.
In terms of quality, trust, and credibility, the SaleYeeDropshipping Platform stands out. The SaleYeequality control and safety team ensures that suppliers who operate on this platform are vetted and the goods that are being sold also meet standard requirements. It may interest you to know that SaleYee.com also offers free and fast 2-day delivery to any part of the world, thanks to the local warehouses. Your customers will be excited to get their product delivered in real-time, without delay.
In this way, you can focus on marketing and sales responsibilities while you allow them to take care of inventory and order fulfillment. When it comes to customer care service, SaleYeeexcels. You will get a quick response to any inquiry almost immediately. How much do you pay for all of these? NOTHING! Using the SaleYeeplatform is completely free – no membership fee, hidden costs, or monthly charges. Just sign up with SaleYeeDropshipping Platform and get started.
Call to Action
Whether your dream is to retire in a beach house in Palawan or to take your kids to the best school, you cannot overemphasize the importance of investing. Saving money in the bank may not be the best option if you aim to reach your financial objectives in life. Other best low-risk investments as described in this article can earn you a high return on investment. If you were scared of buying and storing goods, packaging, and shipping inventory, then consider dropshipping which are low-risk high return investments and inventory-free business models.
