What would be the best investment for a 5 year period?

Question

For 5 years I would not need to touch this money, I'm wondering looking at mutual funds, stocks, Cds, Bonds, and more what would give me the best turn-over, considering also the safety of the investment. Which is why personally I lean far away from the Stock Market.

Answer 1

Absolutely not cds. The bottom line example- 4% cd after 25% tax is 3%. Inflation 3.5% so you lose .5% purchase power. Change the specific numbers but always the same rough result. You think you have more because acct rises but you have lost. Not "safe". A diversified portfolio is far "safer" in that you have a chance for success vs none in bank. If you must buy bonds at least buy Treasury Inflation Indexed 1s. ADX - large company closed-end fund. PEO-oil stocks IAU-gold. EWA- Australia EAF-global. Properly define safety & you won't be eating dog food in your golden yrs with a worthless "full" bank acct. Lean the RIGHT way.

Answer 2

You should look into a "Balanced Mutual fund." This is a fund made up of bond and stocks. They have less risk than all stock funds (which is important if you need the money in 5 years).
Individual stocks are too risky, CDs have low interest.
Contact a Financial Advisor.

Answer 3

It depends on the kind of return you are looking for on the investment and how much risk (to principle) you are willing to take for that return.

Money Markets - no risk to principle but returns better than a savings account

CDs - no risk to principle and returns better than MM but money gets locked. you can stagger the CDs to get some flexibility here.

Bonds - a little risky depending on the type but can offer higher returns than CDs. Problem is researching and tracking them. Good option here are the Bond based mutual funds which take care of the research and maintenance. I invest in a few Closed end bond funds from Blackrock ( BKT, BHY , etc.) which is a very stable investment firm and they offer high-yields . I like closed-end funds because they trade like stocks( sometimes on discount) and they offer fixed high-dividends (monthly returns).

Equities - greatest risk and highest returns as well. problem is again researching and tracking them. Mutual funds make that easier but researching mutual funds themselves is a pain - stability, management, etc.. I like ETF for this reason because they are a basket of stocks ( like MF but traded like stocks) and the process is very transparent.

In any situation for getting optimal returns and ensuring safety you need diversify your investments - so in the end don't put all yours eggs in the same basket.

Good Luck!

Answer 4

troublesome to respond to yet once you anticipate that the two the CD and reductions bond have the comparable value i assume the only element left to evaluate is risk-free practices and withdrawal. Uncle comparable insures the reductions bond so which you already know that'll be risk-free. The financial enterprise ensures the CD and that's probably backed with the aid of uncle sam besides so as that"ll probably purely as risk-free as long because it is not soe dinky financial enterprise. So what in case you elect to withdraw your $ early? Say you elect it for that mustang to get that lady. commonly, the withdrawal effects are much less with a CD. according to that i could decide on the CD. yet, verify out the effects to make specific. ultimately, 5 years is an ok time horizon to flow with shares. counting on how a lot you have, you may diversify somewhat. in case you have $5k, as an occasion, you desire to to place it into somethign it fairly is commonly risk-free like a significant index form of inventory somewhat than a particular enterprise. now's nonetheless a particularly stable time to do this because of the fact the marketplace remains depressed. i could placed it right into a dow jones index fund and watch your $ upward push swifter than the CD or reductions bond. no longer as risk-free yet nonetheless a comparatively very risk-free investment and the return will probable be better. stable luck.

Answer 5

I think if you do intend to sit on it then a mutual fund will yeild a better return, it will be the one that will rollover with more intest earning potiential! Seriously think about a CD for a minute ....a CERTIFICATE of DEPOSIT, its an over glorified savings account, the intrest gained on a cd is nearly that of the earning power of a savings account!
I cant slam bonds because I dont know enough about them!

Let your money work for you!!!! Go with the mutal fund!

Answer 6

Invest in HSBC Tax Saver Equity Fund (NFO) open till December 15th. It has 3 years locking period.

We all work very hard to earn for our dreams. It’s heartbreaking to see a portion of our earnings being taken away by taxes. As a result, we postpone our dreams… Surely, we all want to save on taxes.
Section 80C of the Income Tax Act, has made it possible to save up to Rs. 33,660/-* a year on taxes. We can avail this benefit by investing in specified tax-saving instruments, like Equity Linked Savings Schemes (ELSS).

Introducing HSBC Tax Saver Equity Fund (HTSF), an Open-ended Equity Linked Savings Scheme (ELSS) that offers an opportunity for tax saving by providing Sec 80C benefits.

New Fund Offer:
20 November - 15 December 2006.

Answer 7

Mutual funds are crap, the people who hype these crappy funds want other to feel as crappy as they do when they see poor returns on their money. If you want to save your principle look at CDs or bonds.

Answer 8

Stocks.

Answer 9

My vote goes to either bonds or cds. I'm actually looking into these myself.

Answer 10

Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to many common questions.

http://investing.sitesled.com/

I am sure that you can get your answers in this website.

Good Luck and Best Wishes!