Smart Ways to Invest AED 10000 in 2020
2020 has undoubtedly been a not so excellent year from the economic perspective for both global economies as well as investors across the globe. The global markets, import-export, and all major financial activities are stuck amid the coronavirus outbreak. The deadly virus has affected approximately 1.5 million people shaking economies of developed nations from their roots.
Investment in Dubai and other emirates are still on going however, the pace is comparatively very low due to various factors. A lot of investors are not left with high amounts of capital to make investments that will yield high rates of returns. Since the extent of financial damage caused by coronavirus outbreak in 2020 is very high, investors have gradually drifted to investments in Dubai that involve small amounts with low levels of risk.
Keeping the need of investors and the economies of mind, in this thread, we’ll be sharing some of the smartest ways in which you can invest your AED 10000 in 2020 to yield lucrative returns. Regardless of your profession, and age, we’ll decode the interrelation of correct investment in Dubai with a return on investment during the current phase of global financial instability.
When we talk about investment in Dubai centered around a sum of AED 10,000 we usually don’t think of real estate as a choice. The modern era and digitization have led to wonders not just in the field of science and technology but also in finance and investment. There are numerous websites, portals and service providers that allow investors to invest in real-estate with amounts as low as AED 10000.
The investment market in the UAE is largely dominated by the real estate sector. A major reason behind this is the evolution of UAE from desert land to a business hub that has a never-ending need of property and real-estate be it residential or commercial. These modern-day investment service providers make real estate investments in Dubai affordable and accessible for investors willing to invest in the sector.
The financial analysts and experts analyze a plethora of properties and suggest the best properties where your amount will be invested. One of the best features of investing in such real- estate schemes is that the degree of risk is low since the investment in Dubai is carried out on a crowdfunding model.
One of the most popular forms of investment in Dubai and all across the globe are mutual fund investments. Mutual Funds are safe, affordable, reliable and easy to manage which makes them quite amongst investors worldwide. As the name suggests mutual funds are formed by pooled capital of several investors that share a common objective of generating and accumulating wealth via returns obtained.
In the case of mutual funds, numerous investors invest in a particular fund that leads to the generation of a pooled capital which is later invested in market-based instruments based to yield returns. Mutual funds are managed by expert fund managers that choose the market-based instruments based on the fund and the market situation at the time of investment.
Mutual fund investments are quite affordable and do not require huge capital to begin investing. Investors can begin investments with amounts as low as AED 1000. Moreover, the degree of risk associated with mutual fund investments in Dubai is substantially low, which is another reason one can go ahead and choose these tools while investing AED 10000 in 2020.
Bonds are one of the most lucrative and popular forms of investment in Dubai after mutual funds and the stock market. In simple terms, a bond may be described as a debt security instrument that allows the holder to earn profit via applicable interest over the debt. The holder is obliged to pay the debt which in turn is paid at the maturity period along with a maturity benefit i.e. interest added over the basic principal amount.
Therefore a bond is considered as a form of loan that is issued by the issuer to the holder. Bonds allow borrowers to gain funds that can be used to carry out investments in the long run. However, in the case of government bonds, the amount is used to manage the day to day expenditure. Bonds are safe and allow investors in Dubai to start investing with amounts equivalent to AED 10000.
Ever since the beginning stocks have ruled the investment markets due to several underlying reasons. Investors usually have a mindset that in order to invest stocks one needs to get in touch with a professional stockbroker or a stock trading company that deals in the business. Contrary to the common belief, investors can make use of simple E-trading platforms that allow buyers to compare and trade in the stock market.
Investing in stocks does not require high investment amounts and hence is ideal for investments ranging up to AED 10000. Investing in stocks is a bit different in comparison to other forms of investment since the returns are highly rewarding and the degree of risk is quite high. Therefore, it is recommended that one should make investment-related decisions cautiously while investing in stocks.
In a Nutshell
When it comes to investing it is not really about the amount you invest but the form of investment you choose. With the current market situation and struggling economies, one needs to be extra cautious while investing in any investment tool in Dubai. With the above-mentioned options, it would become easier and convenient for you to invest AED 10000 in the UAE.