12 Best Investments Right Now For Higher Returns In 2024

Choosing the best investments for 2024 is essential if you're looking to maximize returns and grow your wealth. From traditional options like stocks and bonds to newer alternatives like cryptocurrencies and REITs, each offers unique advantages and risks. Real estate and high-yield savings accounts also provide stable opportunities, while dividend stocks can bring steady income. With market shifts and economic trends, understanding these options helps balance risk and reward.

In this article, we’ll explore the 12 best investments right now for achieving higher returns in 2024 and explain why they might be perfect for your financial goals.

12 Best Investments for 2024

In 2024, a mix of traditional and modern investment opportunities can help you maximize returns while managing risk. Here's a quick overview of some of the top choices to consider:

• Stocks & Equities: Historically strong returns, but volatile.
• Real Estate: Reliable long-term growth through property value and rental income.
• Cryptocurrencies: High-risk, high-reward potential in the evolving digital economy.
• Bonds: Low-risk option for steady income.
• Dividend Stock Funds: Regular income through dividends with potential for capital growth.
• REITs: Invest in real estate without owning property directly.

1. High-Yield Savings Accounts

High-yield savings accounts are low-risk investments offering better returns than regular savings accounts. These accounts are often found at online banks, which pass savings onto customers in the form of higher interest rates.

Why they are great:

• Safer than most investment options since they are FDIC insured.
• Currently offer up to 4-5% interest rates.
• Easy access to funds compared to other types of investments.

Examples:

• Ally Bank: Offers a high-yield savings account with competitive rates.
• Marcus by Goldman Sachs: Another solid choice for those looking for higher returns without high risk.

Pros:

• Virtually no risk.
• Accessible funds whenever needed.

Cons:

• Lower returns compared to stocks or real estate.
• Inflation can outpace the interest rate.

2. Top Cryptocurrencies for Higher Returns

Cryptocurrencies have gained massive popularity due to their potential for high returns. However, they also come with high volatility and significant risk. Investing in established cryptocurrencies like Bitcoin or Ethereum is a more secure option than newer, less-known tokens.

Examples:

• Bitcoin: The most established cryptocurrency with a proven track record.
• Ethereum: Offers innovative smart contract technology.

Pros:

• High growth potential.
• Decentralized and secure.

Cons:

• Extremely volatile.
• Can lose value quickly during market downturns.

3. Short-Term Certificates of Deposit (CDs)

CDs are a type of low-risk investment that locks in your money for a fixed period, usually between a few months to a few years. In return, you get a guaranteed interest rate.

Examples:

• Synchrony Bank: Offers competitive CD rates with short-term options.
• Discover Bank: Known for high-yield CDs with flexible terms.

Pros:

• Fixed, predictable returns.
• Virtually no risk as they are FDIC insured.

Cons:

• Limited liquidity—you can’t touch your money until the term ends.
• Lower returns than stocks or real estate.

4. S&P 500 Index Funds

An S&P 500 index fund gives you exposure to the 500 largest companies in the U.S. by market capitalization. This investment option provides stability due to diversification across various industries.

Examples:

• Vanguard S&P 500 ETF (VOO): One of the most popular index funds.
• Fidelity 500 Index Fund (FXAIX): Known for low fees and strong performance.

Pros:

• Broad diversification.
• Historically strong returns averaging around 7-10% annually.

Cons:

• Subject to market volatility.
• Long-term investment—requires patience for returns.

5. REIT Index Funds

Real Estate Investment Trust (REIT) index funds offer a way to invest in real estate without owning physical property. REITs allow you to earn from dividends based on rental income from commercial properties, residential buildings, and more.

Examples:

• Schwab US REIT ETF (SCHH): Tracks the overall U.S. real estate market.
• Vanguard Real Estate ETF (VNQ): Known for its wide range of real estate assets.

Pros:

• Generates passive income through dividends.
• Requires lower capital than owning property.

Cons:

• Sensitive to interest rate changes.
• Returns can be lower than direct real estate investments.

6. Series I Bonds

Series I Bonds are a great way to protect your investment from inflation while earning interest. These bonds are backed by the U.S. government and offer a combination of a fixed interest rate and an inflation-linked rate.

Examples:

• TreasuryDirect: Where you can purchase Series I Bonds directly from the U.S. Treasury.

Pros:

• Inflation protection.
• Guaranteed returns backed by the government.

Cons:

• Limited to purchasing $10,000 per year.
• Locked in for a minimum of one year.

7. Dividend Stock Funds

Dividend stocks provide regular income through dividends, making them an excellent choice for income-seeking investors. By investing in dividend stock funds, you diversify across multiple dividend-paying companies.

Examples:

• Vanguard Dividend Appreciation ETF (VIG): Focuses on stocks with a history of increasing dividends.
• iShares Select Dividend ETF (DVY): Known for high dividend payouts.

Pros:

• Consistent income from dividends.
• Potential for capital appreciation.

Cons:

• Stock price fluctuations.
• Lower growth potential compared to non-dividend stocks.

8. Nasdaq 100 Index Funds

Nasdaq 100 index funds provide exposure to the top 100 non-financial companies listed on the Nasdaq stock exchange, focusing primarily on the tech sector.

Examples:

• Invesco QQQ Trust (QQQ): Tracks the performance of the Nasdaq 100.
• Fidelity Nasdaq Composite Index Fund (FNCMX): Known for broad exposure to the tech-heavy Nasdaq market.

Pros:

• High growth potential due to the tech sector’s dominance.
• Diversification across major tech companies.

Cons:

• High volatility due to the tech sector's inherent risks.
• Can underperform during tech sector downturns.

9. Short-Term Corporate Bond Funds

Short-term corporate bond funds invest in corporate bonds that typically mature in one to five years, offering a blend of lower risk and moderate returns.

Examples:

• Vanguard Short-Term Corporate Bond ETF (VCSH): Known for its stability and reliable income.
• iShares 1-3 Year Credit Bond ETF (CSJ): Focuses on investment-grade corporate bonds.

Pros:

• Lower risk compared to stocks.
• Offers steady income through interest payments.

Cons:

• Lower returns compared to high-risk investments.
• Can lose value if interest rates rise.

10. Physical House Rentals

Investing in rental properties can be one of the best ways to generate passive income and build long-term wealth. The value of rental properties typically increases over time, providing both rental income and potential appreciation.

Pros:

• Steady income from rent.
• Potential for property appreciation.

Cons:

• Requires substantial upfront investment.
• Property management can be time-consuming.

11. High-Growth Sectors to Watch in 2024

Sectors like technology, healthcare, and renewable energy are expected to lead growth in 2024. Investing in companies within these sectors can provide substantial returns, although they carry more risk due to their volatility.

Examples:

• Technology: AI and cloud computing companies.
• Healthcare: Biotechnology and pharmaceutical innovations.
• Renewable Energy: Solar, wind, and green energy companies.

Pros:

• High growth potential.
• Opportunity to invest in future-defining technologies.

Cons:

• Higher volatility and risk.
• Requires close market monitoring.

12. Value Stock Funds

Value stock funds focus on investing in companies that are considered undervalued relative to their fundamentals, such as earnings and dividends. These stocks are often from established businesses that may be temporarily out of favor but have solid long-term potential. For 2024, value stock funds offer a strong opportunity for investors seeking long-term growth at a reasonable price.

• Pros:Historically outperform growth stocks during economic recoveries.Less volatile compared to high-growth stocks.Potential for steady dividends.
• Cons:May take longer to realize returns.Could remain undervalued for extended periods.

Value stock funds provide solid long-term opportunities for patient investors!

Conclusion

By exploring these best investments in 2024, you can find options that align with your risk tolerance and financial goals. Whether you prefer the safety of savings accounts or the potential of tech stocks, there’s something for everyone. Remember, diversification is key to a well-rounded investment strategy.

FAQ

What investments have the highest returns? Historically, stocks, real estate, and cryptocurrencies offer the highest returns.

What is the best way to invest money? The best way depends on your goals and risk tolerance. Stocks and real estate are common choices for higher returns.

Which investment is best for high returns? Investing in the stock market, especially through index funds like the S&P 500 or Nasdaq 100, often provides high returns.

Where can I get a 10% return on my money?

To get a 10% return on your money, you can invest in high-yield options like growth stocks, real estate investment trusts (REITs), or peer-to-peer lending platforms. However, these investments come with higher risk, so it's essential to diversify and carefully assess each option.