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Capital is money set aside for investment.it is money or property to be used to enhance wealth creation. To increase capital one has to consider the following
1. The level of risk involved
2. percentage return on capital
3.alternative investment options.
Some means of increase capital are
1.investing in government bonds and government backed securities. this can return at least within 4% to 12% within a period of 6months to 10 years.this is one of the safes est means of making returns as most government meet their debt obligation.
2. stock market; this involve investing in the capital market. returns are not fixed but in most cases returns are high and can reach as how as 35% return on capital. it involves high risk.
3.investing in property market; this also has a high rate of return but depends on location, its is a very lucrative means of increasing capital.
4. investing in managed funds. this are funds that are put under the care of a special and experienced financing manager who managers the fund with expectation of making maximum return and at low risk to the investor. some managed funds include Hedge funds, forex managed funds, mutual funds, Commodity managed funds etc. Before investing in any of this manged funds,ensure that you assess all relevant information and meet with experienced managers to explain to you in details any information you do not understand.also ensure that all your tax obligations are outlined before you invest in any of the funds mentioned above. applying this simple process will ensure maximum return on your investment.
