When you have wealth, you’ll want to secure the best ROI investments. The best investments provide healthy returns, helping to protect and grow wealth, which can then be passed on to future generations. But what are the best ROI investments?
Today’s wealthy individuals boast diverse portfolios that go far beyond traditional stocks and shares that are often impacted by economic shocks. Tangible assets, including fine art, wine, and real estate, are just some of the assets that make up diverse portfolios for investors seeking to secure the best return on investment while weathering turbulent markets. Here we explore some of the most popular assets that the world’s richest are investing in right now.
What Are The Best ROI Investments?
Fine wine offers an alternative asset for those seeking to diversify their wealth portfolio and secure a sound return on investment. According to Knight Frank’s 2021 Wealth Report, fine wine shared top billing among alternative investments, producing a return of 16% over the year.
The value of fine wine can increase dramatically over time, with some ultra-rare bottles yielding incredible returns. Fine wine typically offers robust, stable growth over time and is recession resistance, offering a safe haven for capital. Indeed, fine wine indices regularly outperform financial markets and other commodities, such as gold. Consulting with an expert can help mitigate any risk when investing in fine wine.
Another tangible asset that can offer a healthy return on investment is fine art. Although no investment is entirely without risk, the best ROI investment in art comes from investing in artworks by highly sought-after artists.
The Knight Frank luxury investment index shows art values have grown 71% over the past decade, with contemporary art performing particularly well. Like most alternative assets, art performs best as a long-term investment, with many investors choosing to invest in a piece of art not only for its monetary value but for the pleasure of owning a desirable artwork they can display in their home.
As with any investment, thoroughly researching the market and seeking expert advice from an experienced art advisor will help mitigate risk and ensure the best ROI investment.
Real Estate is one of the most tried-and-tested alternative asset investments, with the right real estate acquisition providing an incredible return on investment. Take, for example, the Principality of Monaco, where property prices have risen an incredible 75% on average during the past decade. A Monaco real estate investment not only offers incredible returns but also provides an opportunity for investors to enjoy the principality’s legendary luxury lifestyle.
In addition to appreciation, real estate can also provide a steady monthly income when rented out. Renovating a property in need of updating is also a further way to boost the ROI on a real estate investment. Just like any other investment, consulting with an experienced real estate agent is a must. An experienced real estate agent can provide in-depth market analysis and industry intelligence to help investors make an informed choice.
Cryptocurrency is a new asset that investors seeking the best ROI investment are exploring. Popular currencies include Bitcoin, Litecoin, and Ethereum, which are all protected by blockchain technology, a decentralised ledger that records ownership of digital assets.
While some cryptocurrencies have provided fantastic returns, they are not without risk. Take Bitcoin, for example. In 2011, 1 Bitcoin cost just US 30 cents. In December 2013, Bitcoin experienced a significant spike, ending the month at $946.9. The cryptocurrency continued to rise steadily, reaching a record high in 2021, when 1 Bitcoin was valued at over $65,000. While the value of Bitcoin has since dropped, it offers an exciting investment proposition for investors willing to take a risk on Bitcoin soaring in value once again.
There is no question that a diverse asset portfolio can help secure the best ROI investment.