Lux Investing

What is the best way to invest a large sum of money for the highest yield?

Without real estate being considered, what is the best way to invest large sums of money? What is the typical return on such investments? How does one find a good firm?

Public Comments

1. Put large sums in a High-yeild mutual fund. Say you invested 50,000 you will have a monthy income of 500.00. Franklin Templeton or Fidelity Advisor are both excellent funds. You can expect a 10% gain yearly.
2. A large sum might have different connotations to different people. If we are talking about more than about $2 million then a hedge fund would be close to the top of the list. You might possibly expect a return of 20% and more. At least that is the rumor. I have no personal experience with them. However, some have also gone belly up. For sums from about $100,000 up to about $2 million, investing in individual stocks with a broad allocation of investments should yield 10%+ over a long period of time with proper management. For sums under $100,000 index funds and mutual funds are the preferred vehicle of investment. Yields generally run about 8%+ over a long period of time. Some funds actually have in the past yielded considerably more. It is not uncommon to find funds with 5 year annual yields of 25%+. But over a 10 year period it is uncommon to find funds with 15%+. Yields over time tend to approach a norm. To assure a reasonable rate of return with a minimum of risk, it is best to invest in a variety of index or mutual funds with various different investment criteria. No one knows exactly what the future might hold so a broad diversified portfolio helps to assure a decent return with a minimal amount of risk.
3. whenever you invest at high yields it WILL be accompanied by higher risks. I think you should put it into a money market account and contribute a set amount to a certain fund on a monthly basis to make market fluctuation play in your favor.
4. Stocks are great when it comes to good return, but risk is high.There are few things that you should consider before investing.How long you want to invest for? what kind of return you are looking for income or growth.If you are looking for high returns then invest in shares, and it needs a wide understanding about the market .To Learn more about shares and stock trading check the website link below. http://www.smart-investments.org/Best-Stock-Investments/How-To-Invest-In-Stock.php
5. 1) Hedge Funds. 2) At least 100% Annually. 3) Just go to Switzerland and ask for a Private Banker.
6. Download my free eBook at http://www.invest-for-retirement.com and then skip to chapters 21 and 22. I go over the historical returns of the various asset classes and the estimated returns over the next 30 years. Please keep in mind that there is no such thing as a "usual return" for a given type of investment. The best way to invest large sums of money is to use a method called "dollar cost averaging". This is the process of investing smaller chunks of your money at regular intervals. This ensures that you do not buy all of your investments when they have peaked in price. A person will find a good investment firm by first looking at the expenses they charge. Expenses, not past performance, is a predictor of future performance. Fidelity and Vanguard tend to have the lowest expenses: www.fidelity.com www.vanguard.com
7. Investing in mutual funds is a simple way to invest - I would recommend that you do your research first (before talking to too many advisors). I would also recommend utilising one of the many direct investment sites - which in most cases will eliminate entry / exit fees. There are a moderate number of funds that are returning in excess of 15% over 7-10 year time frames - but your selection of these funds will depend upon your risk profile (i.e. how willing you are to experience short term volitility in returns for a longer term gain). However, that said if you are not necessarily looking for an easy option, may I recommend that your first investment should be your financial education. With education the possibilities become endless and your understanding and ability to control risk within an investment improves immensely. With education comes the possibility of utilising a wide variety of investment vehicles, of managing risk, of managing your asset allocation and selecting appropriate entry and exit criteria. I would suggest, that investing in your education would result in returns far greater than what can be achieved within a managed fund ... however, this option also requires effort and persistence ... definitely worthwhile thinking about.