Five top ways to rake in dollars
DOUBLING your money in 10 years is not as simple as it used to seem for investors.
Previously popular sayings such as “house prices double every decade” or “buy bluechip shares” have been shot down in flames.
Nobody can predict the future, but here are five investments with promising potential to double in a decade:
1. HEALTHCARE
A great performer over the past 10 years has been healthcare, which has tripled in value on the ASX, led by biotechnology giant CSL’s shares surging from $36 to $157, and Ramsay Health Care rising from $12 to $62. Many investment specialists believe this sector will continue growing.
Certified financial planner Patrick Canion said he liked to look at long-term demographic trends.
“In developed countries, people are wealthier and living longer – so you would think that anything to do with health and/or aged care should benefit from this trend,” he said.
Mr Canion said a good way to invest was through exchange traded funds that diversify across companies, sectors and countries.
2. ROBOTICS AND AI
The total market value of robotics companies has been forecast to grow from $60 billion today to $1.2 trillion by 2025. It’s high risk but also high return. “If you have a long-term view and are investing in quality companies, there’s nothing wrong with taking a punt with a small proportion of your portfolio,” said JBS Financial Strategists chief executive Jenny Brown.
3. RARE EARTHS
Another risky but enticing idea is companies involved in rare earths, materials used in fast-growing technologies such as mobile phones, batteries and electric motors.
4. START-UPS
In January the Australian Securities and Investments Commission licenced online platforms to allow equity crowd-funding, enabling everyday Australians to buy into start-up businesses with as little as $50. These are the highest-risk investments, so if you’re looking for a something a little less volatile, read below.
5. MIX IT UP
Marinis Financial Group managing director Theo Marinis said the most proven way to double money in a decade was through a diversified portfolio of growth investments, and avoid speculation.