5 Good Online Strategies for Investment

Boost your financial portfolio with effective online investment strategies. Maximize returns and minimize risks with expert insights.

We all want to make money in our lifetime to enjoy the fruits of our labour before we are too old to spend it. This means trading time for money at our jobs and investing to make a profit. Unfortunately, with so many investment opportunities, you could put your cash in the wrong place if you are not savvy enough.

Are you looking to make a few smart investments and unsure where to start? Investing does require an initial investment, but it is much better than money spent. You will be able to grow your assets over time and reap the benefits from smart investing so you and your loved ones will have more cash down the road.

Here are five good online strategies for investment that you can get involved with immediately.

Strategy #1: Mortgage Investment

While buying and selling property is always a wise choice, you can make good money on the other end of the transaction. A great asset to your overall investment strategy is to be the mortgage lender, where you fund other people’s property ownership.

A mortgage investment is an excellent option to make money online. It puts you in the position of investing in what a person needs to buy property: a mortgage. The property backs this loan, so it is fairly safe and gives you interest paid monthly, along with your original investment intact. If a borrower fails to pay, you will become the property owner, which you can then sell to recapture your original investment.

There are four ways to become a mortgagee investor:

Be a Private Investor

This way has you funding a mortgage on your own, and you take all the risk and all the reward.

Public Mortgage Fund

These are publicly traded funds made up of mortgages and are very easy to invest in through your broker or bank.

Private Mortgage Funds

A private mortgage fund is not publicly traded but controlled through an asset manager. They have higher returns but can be more risky as it is harder to get your money out.

Mortgage Syndication

For a more experienced investor, belonging to syndication allows you to be part of many mortgages with fractional ownership in each. These are usually private syndications and take on savvy investors who understand the risk of mortgage investing.

Strategy #2: Buy and Hold

Long-term investing is a great way to make money, but you must be strongly committed to not selling. This allows you to be free of the turmoil in the market because it goes up and down but typically performs well when you commit over several years.

This strategy keeps you from watching for downturns and having the temptation to sell when it is low, and you get to avoid capital gains if you never sell at all. This investment or asset will only grow, which can be cashed in at retirement or part of your legacy.

Strategy #3: Dividend Stocks

Buying and selling stock can be exciting but also risky. While you may have a stock that goes up, many come down, and your initial investment loses value. Regardless of the movement in your stocks, if you get ones that pay dividends, they provide income without selling them.

A dividend stock has you buying shares in a company that disburses some of its profits back to investors, and this can give you a steady income stream. You may also get paid in additional stock to increase your overall shares with a company.

Strategy #4: Diversification

Many people focus on the stock market or real estate because it is exciting and offers the potential for big returns. While you should hold these investments, casting a wider net of investments is a better strategy.

Being diversified means spreading your investment portfolio across different sectors and geographies along with a variety of vehicles, including:

  • Stocks
  • Bonds
  • Real estate
  • Foreign currency
  • Cryptocurrency
  • Cash
  • International markets
  • Precious metals
  • Mutual funds

Adopt a short–, medium and long-term strategy for your diversified portfolio and have investments that fit each category. This will allow you to have access to some cash if needed but still take advantage of long-term growth. Ultimately, diversification mitigates any volatility and takes away emotional stress.

Strategy #5: Let Your Winners Keep on Winning

We all want our investments to perform well, but often, when they do, the first impulse is to sell them and take the cash. Just because a stock or property has gone up in the past few years doesn’t mean it can keep going, and by holding onto it, your winner keeps winning.

Holding onto your strong investments can also compensate for any poor performance from others and give you balance to your portfolio.

Dean is a self-professed tech geek with a fondness for computers, video games, and any novelty tech-savvy gadgets.