Top-5 Investments That You Can Liquidate Easily In Financial Crisisby Ngulminthang Lhanghal Financial expert in international trade finance an
The global pandemic of the Covid-19 crisis is at its peak in the current situation, putting its worst impacts on the worldwide economy as well as international trade. Whether you are running a small enterprise or a big established organization, ensuring successful business operations requires an efficient amount of working capital, which seems to be a difficult task amid Covid-19 leading to a decrease in demand & supply.
Thereby it is essential for every individual to not only know about different types of investment for ensuring financial stability but also make healthy & result-oriented investments that can be liquidated on short notice in case of any type of financial crisis. In this blog, we are explaining the best types of investments that work well for you to cope up with financial emergencies. Let’s take a look:
Investments That Are Smart To Liquidate
Bonds & Securities - These are low-risk investments that can be purchased from the state, city governments as well as from any individual companies that issue corporate bonds or municipal bonds. On the other hand, the US Treasury issues Treasury Bonds, notes, & bills, etc. When you are buying bonds regardless of their types, you are simply lending money to an organization and getting interest payments. After the end of the maturity period, you can get your principal back.
Stocks - These are also known as shares or equities and are considered as the simple type of investments. There are a variety of ways to invest in the stock market such as stock market index or individual stocks etc. Buying stocks means getting an ownership stake in a publicly-traded company. However, when the prices can go up, you can sell your stocks for a profit but it can also go down, so the risks are 50-50.
Mutual Funds - It is a type of investment fund which contains many investors’ money and is invested broadly in several companies. It is made of a blend of stocks and bonds as well as managed by a money manager. But they are risky as the money is diversified across many stocks and bonds.
Gold - If you are looking for liquid assets, you should invest in gold and other commodities such as silver or crude oil, etc. But you should be aware of the prices as they can rise or drop. If you think that someday you are going to experience a financial crisis, then gold could be one of the best investment options for you.
Certificates of Deposit (CD) - It is one of the low-risk investment options where you give a certain amount of money to your bank for a predetermined period. When the period is over, you can get your principal back along with the predetermined amount of interest. If the loan period is longer, the higher your interest rate.
Cryptocurrency - They are one of the most trendy types of investments becoming famous among investors these days. They are unregulated digital currencies that you can purchase and sell on cryptocurrency websites. They are available in different types such as Bitcoin or Dogecoin etc. However, they are quite risky due to many factors such as the scope of government regulation and limitations of worldwide acceptance as a form of payment.
These are some of the best liquid assets for investors to invest in but the list goes on. Some of them are suitable for beginners while others require well-versed knowledge. The level of risks depends on the type of investment so it is important to be aware of them before making a decision. Follow Me: Ngulminthang
Created on Apr 30th 2021 07:30. Viewed 235 times.