In times of austerity and hardship, the notion of saving money and investing your capital can seem fanciful, at best. This is particularly true in the wake of Covid-19. In the UK, Chancellor Rishi Sunak unveiled an emergency budget aimed at curbing the mounting socio-economic cost of the pandemic.
However, this doesn’t mean that you should completely overlook the importance of investment in the current climate, even if you only have a small amount of disposable income with which to play.
In this scenario, long-term investment vehicles often offer the best value, as are capable of delivering sustainable returns over time. However, such investments can also be complicated by the dynamism of specific markets and assets, so you’ll need to liaise with experts to identify a viable portfolio.
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The Benefits of Long-term Investments
Arguably, dividend stocks best embody the principle of long-term investments, and are defined as dividend payments to shareholders in the form of shares rather than cash.
They also tend to be represented by shares in so-called ‘blue-chip’ companies, including those represented in the world’s primary stock indexes. For example, you may have heard of the ‘dividend aristocrats’, which are businesses in the S&P 500 index that have improved their annual payouts annually for at least 25 consecutive years.
This currently includes businesses such as S&P Global and Target Corp, and there’s no doubt that shares in these brands can afford you incremental returns over an extended period of time.
The issue here is that dividend payments may be relatively modest, and this may not be suitable if you have particular financial goals or are looking to secure a viable retirement fund by making your existing capital work for you.
Of course, there are other asset classes that can deliver a long-term return, with real estate offering a prime example.
However, there’s no doubt that the housing market is dynamic and inherently volatile, while even the notion of investing in run-down real estate that needs development requires a significant cash investment at the outset.
What About Global Investment Funds?
With these challenges in mind, you may be able to find a viable compromise in the form of global investment funds.
One particularly relevant example exists in the form of the Global Investor’s Fund, which is incredibly diverse, reputable and expertly managed by Downing’s Anthony Eaton.
This thematic fund focuses on the mass expansion of the middle class population internationally, and it aims to drive long-term income growth by investing in approximately 150 equity positions across the globe.
The primary benefit of this type of fund is that it can instantly diversify your portfolio, while it also seeks out market-leading companies across specific industries.
At the same time, it focuses primarily on large-cap businesses, helping clients to avoid any undue exposure or risk even in relatively dynamic markets. This will also balance defensive and cyclical stocks in real-time, ensuring that you optimise your long-term gains and continue to accumulate wealth even during declines in the economic cycle.
In addition to seeking out balanced funds of this type, you also need to consider partnering with a viable and reputable investment firm like Downing.
Not only is this firm licensed and home to a number of top financial experts, but it’s funds are also relatively straightforward and incredibly transparent to clients.