Long term investment options good for business investing

Businesses who are not looking for a quick return on their investment or who would like to keep risk to a minimum should consider long term investment options.Long term investment options range from three years to how ever long a company wishes to keep money invested.Here are a few long term investment options that will keep risk low and returns constant.

Bonds

Bonds are an excellent way to invest money for the long term, without incurring a large amount of risk.In many cases, a certain percentage return is guaranteed.What the company would be doing is giving another company a loan on which the receiving company would pay interest or a percentage of profits.Even though this method contains extremely low risk, companies should ensure that the bonds they are purchasing are protected in some way.

Mutual Funds

Companies may also consider investing in mutual funds.This is when a company gives money to an investment company who then uses that money to invest in stocks, bonds, options, commodities or money markets.The investment company usually allows the investor to choose what percentage of the investment is placed into each category.Mutual funds are generally a very low risk option, and allow the investor to decide how much risk they wish to take.There is a certain amount of risk associated with each category available through a mutual fund.Finding the right combination can guarantee a return on investment.

Foreign Market

Companies may wish to investigate the foreign market when deciding how to invest their money.During times when the American economy is struggling or the stock market is in fluctuation, the foreign market can be a stable lower-risk option.When investing in the stock market, no matter domestic or abroad, adequate research should be carried out.All stock markets are affected by different global elements.Businesses may even consider consulting with an expert before exploring this option.

Research and Development

Research and development inside of a given company is an option for long term investing.Companies that invest in research give themselves the opportunity to develop new technologies that can be sold or implemented to not only make back the money invested, but a profit as well. When those new technologies can be adapted to other parts of the company, then productivity can be increased, money can be saved, and businesses create a larger net worth.

Real Estate

Real estate can also be a viable way to earn long term dividends.Purchasing a property in a stable economy will return on the investment as the property appreciates.A company that is leasing may consider buying a property in order to expand or increase its net worth.Companies that wish to dabble in real estate may also consider purchasing apartment complexes which give a partial return instantly and can also appreciate over time to return a substantial amount over time.

Companies should thoroughly research all of their options before beginning to invest.Some long term investments carry with them a higher risk than others.Depending on the amount of risk associated with a given investment, an investment may not return the same percentage as another investment option.Companies may consider combining a number of long term investment options with varying levels of risk and return so as to safely earn a return.