Wealth creation is the long-term goal for most individuals hoping to secure their financial future. Although wealth creation typically begins with saving, savings are only one part of the equation. While possessing a robust saving culture matters, such savings offer minimal value before conversion into investments.
Investing primarily entails acquiring real assets and financial tools with the potential for appreciation in value to generate regular income or capital. However, investments vary in risk, returns, and the recouping period.
So, how do you select an investment that guarantees consistent daily returns? Keep reading to learn more about investing, including how to invest and make money daily.
1. Invest In Exchange Traded Funds (ETFs)
Exchange Traded Funds (ETFs) are financial instruments featuring an assortment of assets traded as a block on the securities exchange. EFTs have two primary advantages over other financial instruments traded on the securities exchange.
First, an ETF’s assortment of assets, including commodities and shares in specialized industries, spreads out investment risk akin to a diversified portfolio. Therefore, consumers trading in the financial instrument enjoy exposure to a basket of diversified assets from a single security. The low risk involved in this investment offers a guaranteed return on investment.
Second, unlike other securities priced once a day, ETFs facilitate intraday trading. Intraday trading has numerous advantages to the trading instrument’s holder, including zero overnight risk and capacity for leverage.
So, how does investing in ETFs help you generate consistent daily returns? ETFs generate income primarily as dividends and capital gains from various assets included in the trading baskets.
Various ETFs exist, including equity, bonds, commodity, sector, fixed income, currency, real estate, and specialty ETFs. The distinguishing factors between the various ETF types include asset classes, sectors, index benchmarks, volatility, and liquidity.
While generating consistent daily returns may be your primary goal, other factors, including investment goals (short-term VS long-term) and risk appetite, influence the ideal ETF category to facilitate desirable daily returns. Therefore, consider consulting an investment expert for insights into ideal ETF portfolio strategies before investing in the financial tool as a daily income source.
2. Dividend Stocks
Dividend stocks are among the most popular stock options traded in the capital markets. Their distinguishing factor is that investors holding such stocks receive cash dividends from the profits earned by the entity issuing the stock.
Traditionally, dividend stock investors earn dividends semi-annually or during each quarter, depending on the stock company’s structure. However, various dividend stocks are switching from the traditional model and offer investors monthly dividends as a form of profit sharing.
Therefore, dividend stocks are a viable option for generating consistent daily returns to help supplement your income or meet investment goals.
Besides the dividends received periodically, dividend stocks allow inventors to generate more income via dividend investing. Dividend investing as a strategy for investing in stocks entails using the income or returns generated from the earned dividends to add more dividend stocks to your investment portfolio.
Additionally, dividend stocks are long-term investment stocks with high liquidity that ensure consistent daily returns. Moreover, such stocks experience low volatility. Also, one financial resource highlights no minimum order limit on publicly-traded company stocks.
Therefore, you can start investing in dividend stocks with a low initial capital investment, depending on the value of the shares in question.
Dividend stocks vary significantly in value based on the issuing company’s performance and growth potential. However, besides a company’s performance, conduct due diligence on its track record and capacity to maintain dividend payout before investing in its dividend stocks to generate consistent daily returns.
3. Consider Using Robo-Advisors
On the one hand, professional investment management services are crucial in helping investors create an investment portfolio matching their need for consistent daily returns and other priorities. However, such services are expensive, locking most low-income and cost-conscious potential investors from investment pools.
Fortunately, you can avoid cost-related bottlenecks by using robo-advisors to create and manage an investment portfolio that meets your goal for consistent daily returns.
So, what are robo-advisors, and how do they function to facilitate daily earnings for investors? Robo-advisors are fully automated and semi-automated brokerage firm-run investment platforms or investment management solutions; the semi-automated platforms engage professional human interventions from time to time.
The platforms feature algorithms modeled from tried-and-true investment theories and modern investment portfolio research. They use questionnaires to determine a client’s investment goals and select financial tools to generate a comprehensive investment portfolio that meets the investors’ goals, including consistent daily returns.
Additionally, Robo-advisors manage the generated portfolios by increasing the potential for high returns while mitigating investment risks. Moreover, their management function includes investment portfolio re-organization based on different markets.
Therefore, while some robo-advisor models may require human professionals to step in and guide some client decisions, robo-advisors are an effective passive income-generating venture for consistent daily returns.
Also, robo-advisor platforms significantly lower fees than traditional brokerage firms while giving target investors access to previously inaccessible markets. However, different robo-advisor algorithms and functionality models prioritize different features.
Therefore, consider signing up on robo-advisor platforms featuring a comprehensive variety of investment options, robust investment and data security features, affordable fees, and reasonable minimum investment requirements. To land the best deal, you can read fellow consumer reviews and compare fees and features across robo-advisor platforms.
4. Consider Investing in Small Businesses
Traditional investment options focus on buying stocks and trading in indexes mimicking large corporations like the S&P 500, dominated by Fortune 500 companies. However, there is immense potential for earning consistent daily returns by investing closer homes in local small businesses.
Small businesses across America need as much capital as the government bodies and large corporations listed on the country’s 13 stock exchange markets to facilitate production, service delivery, and growth. According to one Chamber of Commerce report, 33% of American small businesses struggle and eventually close shop due to a lack of capital or funding.
Small American businesses play a significant role in fueling the economy and generating employment. Besides buying locally, you can support small businesses by investing in such ventures to help them generate capital and gain consistent daily returns.
So, how do you identify the small businesses needing your investment? Several platforms have debt investor facilities, allowing you to invest in small businesses across the US in return for interest income.
Such sites feature small business listings with analytics on their performance potential, allowing you to make consistent daily returns by investing as little as $100 in the businesses. Moreover, investing in small businesses is a passive income-generating opportunity because the small businesses do all the work, and all you need to do is collect your interest returns.
Also, you can increase your returns from this venture by reinvesting the earned interest and helping more American small businesses to keep their doors open.
5. Peer-to-peer Lending (P2P)
Peer-to-peer or P2P lending services are similar to small business investments in linking potential creditors and debtors. However, the potential debtors needing money in the P2P models are individuals rather than business entities.
Therefore, you can earn consistent daily returns as a retail lender through P2P via the equated monthly installments from potential debtors. Equated monthly installments (EMIs) are the sum of the borrowed principal amount and the calculated interest rate divided by the loan tenure.
However, two questions arise regarding peer-to-peer lending for consistent income generation. First, loans to individuals, including family and friends, carry a significant default risk, so how do you identify borrowers with a low default risk? Second, how do you collect the earned EMIs from debtors?
P2P lending platforms partner with loan originators to connect retail lenders to borrowers. The platforms feature a risk profile for each borrower based on demographic factors, including occupation type and status.
Like traditional bank-issued loans, the loan originators charge high-risk lenders a higher interest rate on their loans, allowing you to earn more from such borrowers. While you can earn up to 36% in interest from high-risk borrowers, such high rewards come with high risks.
Second, while some P2P lending platforms offer secured loans to prevent investor losses, others do not. Also, some platforms may refund your investment only in default and bad debt, while others refund the principal and interest amounts.
Therefore, conduct due diligence on a P2P platform’s investor terms and consider diversifying your lending portfolio to earn consistent daily returns while mitigating risks. The lending platform holds the EMIs from debtors in an Escrow account and pays you on the appropriate date.
6. Real Estate Investments
Real estate is among the most prominent investment asset classes for consistent daily returns in the form of rental income. The asset class remained inaccessible to retail investors for the longest time due to the high initial investment cost of owning property.
However, you can now earn rental income by investing as little as $100 in crowdfunded real estate projects and real estate investment trusts (REITs).
The returns on REITs and crowdfunded real estate vary depending on the property type, location, and prevailing market circumstances. However, such investments guarantee long-term consistent daily returns.
7. Mutual Funds
Mutual funds are companies or trusts that generate funds from a pull of investors and channel the acquired funds to diverse financial instruments and securities.
Their primary advantages include access to diverse assets from a comprehensive investment portfolio and an affordable initial investment. The income generated from mutual funds includes dividends and capital gains, translating to consistent daily returns.
Investment goals vary from short-term to long-term and wealth generation to regular income. So, follow the investment options above if your goal is consistent daily returns. However, you can consult an expert for deeper insights into each investment option.