Do you want to invest where rich people invest? If YES, here are 20 best investment opportunities for accredited investors with low risk and high return in 2020.
Look around you and you will see that there are loads of investment vehicles that are exclusively reserved for rich accredited investors. Some of these investments require huge sums of money and such money can’t be gotten by a young investor or just any investor.
In other to be considered an accredited investor, you should meet certain criteria set by different countries’ securities laws. The requirement could range from having a net worth of one million dollars to earning over two hundred thousand dollars annually.
What is an Accredited Investor?
According to Wikipedia, an accredited or sophisticated investor is an investor with a special status under financial regulation laws. The definition of an accredited investor (if any), and the consequences of being classified as such, vary between countries.
Generally, accredited investors include high-net-worth individuals, banks, financial institutions and other large corporations, who have access to complex and higher-risk investments such as venture capital, hedge funds and angel investments.
In the actual sense, an accredited investor is a person/group that generates an annual income of $200,000 or $300,000 for the last two years with expectation of earning the same or higher income, or must have a net worth of at least $1,000,000, excluding the value of one’s primary residence. Also, if an entity consists of equity owners who are accredited investors, the entity itself is an accredited investor.
As a rich and an accredited investor, you have the privilege to invest in high risk investments like hedge funds, seed money, private placements, angel investment networks and limited partnerships; of course, this forms of investment comes with high rate of return on investment (ROI).
The bottom line therefore remains that being an accredited investor gives you the legal rights to invest in diversified investment portfolios which non – accredited investors don’t find attractive. The saying “The rich keeps getting richer…” most likely came into being as a result of the rate at which accredited investors doubled their income in a short space of time.
If you are a rich accredited investor, here are 20 types of investment portfolios that you can invest in; they are exclusively reserved for the rich.
20 Best Investment Opportunities for Rich Accredited Investors in 2020
- Holding Company
One good investment portfolio that a rich and accredited investor can leverage on is to start a holding company. A holding company is a company that owns other companies’ outstanding stock. A holding company does not produce goods or services itself, but they are established with the aim of owning the shares of other companies in order to form a corporate group. Holding companies allow the reduction of risk for the owners and can allow for the ownership and control of a number of different companies.
- Seed Money Company
One more investment portfolio that is exclusively reserved for rich and accredited investors is seed money. Seed money, sometimes known as seed funding or seed capital, is a form of securities offering in which an investor invests capital in exchange for an equity stake in a company.
The term seed implies that this is a very early investment, meant to support the business until it can generate cash of its own, or until it is ready for further investments. Seed money options include friends and family funding, angel funding, and crowdfunding.
- Hedge Funds Investment
There are countless number of business people with lots of money but who cannot seem to find a place to invest in. The essence of hedge funds is to help various business people or accredited investors to pool their cash together so that an accredited firm can help them manage such funds and ensure that they get good returns on their investment.
This is a good form of investment for accredited investors because it has flexible options; you can withdraw or add to your investment. Most accredited investors would rather choose hedge funds managers to help them manage their investment portfolios.
- Private Equity Investment
This form of investment could mean buying a company or buying a larger chunk of the shares of a company. There are companies out there not making profits simply because it is being poorly managed; investing or completely buying such company as an accredited investor would help you over haul the management team and put things in place that will position the company for better growth and profitability.
- Venture Capital Investment
Venture capital investment is yet another investment portfolio that is exclusively for rich and accredited investors. Loads of startup companies out there have potentials to grow, expand and make huge returns on investment, but their growth and profitability is limited because the owners might not have the required capital to invest into it.
As an accredited investor, buying into start-ups is easier and cheaper compared to buying into an established company. Risks with start-ups are high that is why proper investigation and risk assessments should be conducted before investing.
- Mutual Fund
Another investment vehicle that rich and accredited investors can leverage on is mutual fund. Mutual fund is simply a professionally managed investment vehicle that is funded by various shareholders who trade in diversified holdings; it is a collection of stocks and bonds.
Investing in mutual funds generate capital gains. When compared to hedge funds, mutual funds are less volatile. Unlike hedge fund that is not regulated, mutual fund is highly regulated and they are sold to the general public. Another advantage you stand to gain with mutual fund is that you have the options to choose the stock and bond you want to invest in. With mutual funds you have the options to also invest in global funds, sector fund, country funds or regional funds et al.
You will quite agree that owning a telecommunications company is not open to all; it is exclusively for rich and accredited investors because of the huge capital required in securing the required license. The Telecommunication industry is still growing and expanding to new frontiers.
This is one industry whose investment requires large sums of money and the good news is that the risk that comes with it is low compared to some other industries. As an accredited investor, there are loads of telecommunication companies that you can invest in without being worried because you can be rest assured that your investment would be safe.
- Oil and Gas
Although there are several investment opportunities in the oil and gas industry, but if you want to operate in the main stream oil and gas sector, then you should be qualified as a rich and accredited investor. The truth is that the amount of money required to invest in the oil and gas industry is not the kind of money that can easily be raised.
It requires a lot of money to become an investor in the oil and gas industry that is why as an accredited investor, you should consider investing here if you don’t have an investment portfolio in this industry. You could invest in oil exploration and production, oil servicing and liquefied gas et al. The return on investment in this industry seems to be one of the highest compared to other industries.
- Satellite/Cable Television
Satellite or cable television company is yet another investment portfolio that can be considered as an investment vehicle that is reserved exclusively for rich accredited investors. This is so because of the amount required in securing all the required licenses, acquiring the needed broadcasting equipment, leasing facilities in various countries, hiring and paying loads of employees (presenters, reporters, engineers, and other back office staff).
- Military Ware and Ammunition
You will agree that military wares, fire arms, war tanks, fighter jets, ammunition, machines and equipment cannot be manufactured by just any entrepreneur. For you to be qualified to go into the manufacturing of military hardware and ammunition, then you must be an accredited and rich investor. If you are not a rich and accredited investor, you will not be able to secure the required license to run this type of business.
- Real Estate
Although anybody can invest in the real estate industry, but high-level real estate investment is reserved for the rich. Investing in real estate is one of the safest forms of investment to venture into. The need for housing will continue to be on the increase which is one of the reasons why as an accredited investor you need to look towards owning an investment portfolio in this industry.
Another investment vehicle that is reserved for rich and accredited investors is the massive construction business. Constructing railways, roads, refineries, airports, seaports, stadia, long bridges, et al, require huge cash and such projects are given to those who meet certain financial requirements. As an accredited investor; investing in a major construction company would most often than not guarantee you good returns on your investment.
It is often said that as long as commerce exist amongst different nations of the world, there will always be business for shipping companies. Except for lighter cargoes that can be handled by aircrafts, shipping still remains the most reliable and convenient way to ship goods all over the world. There is no industry in the world that can be compared to the shipping industry when it comes to their effect on global economy.
Investing in this industry would mean that you will continue to be in business as long as your shipping company is properly managed. There are risks involved in the shipping business, and that is why major players in this industry are accredited investors. They have all it takes to shoulder the risks that are prevalent in the industry.
Investing in aviation requires huge sum of money; money to buy aircrafts, obtain the required license and for the maintenance of the aircrafts. As an accredited investor, this is one area to invest in because non – accredited investors can hardly survive this industry because of the high risk despite the fact that it gives good return on investment in the long run.
- Automobile Production
Any business that you can’t afford to start on a small scale is obviously exclusively reserved for rich and accredited investors and automobile production is one of such businesses. Most giant automobile companies are heading towards Africa to establish their production plants.
This is no wonder that the market is opening up for investors to come in every day. As an accredited investor, you can consider investing in this industry. Be sure that you have you done your research properly before choosing the company to invest in.
- Ship Production
Setting up a ship production plant is not for average entrepreneurs; it is a business that requires huge startup capital and also necessary license and support from the government of your country. So, as a rich accredited investor, if you are looking for a good investment vehicle to invest in, then you should consider starting your own ship production company. The truth is that there is a huge market for ships in our world. Aside from manufacturing ships, you can also engage in refurbishing, repairing and maintaining ships.
- Aircraft Production
Another business that is exclusively reserved for rich accredited investors is aircraft production. You will quite agree that aircraft production business is a business that requires huge investment. The truth is that you would have successfully amassed wealth and gotten the required business licenses before venturing into the aircraft production business. The amount required to construct your plant, acquire the needed tools and equipment and of course hire core professionals is not what an average investor can get, even if they opt for loans from banks.
- Helicopter Hire Service
As a rich and accredited investor, one of the investment vehicles that you should consider investing in is to start a helicopter hire services. This type of business requires that you obtain license, clearance and of course huge capital to acquire standard helicopters, hire pilots and maintenance engineers et al. One good thing about this type of business is that there is a good market for the business if it is properly located and you are likely going to breakeven within record time is you have an excellent team managing the business for you.
- Air Ambulance Company
Have you ever wondered how seriously sick people especially people in coma are transported from a hospital in one country to another hospital in another country? If you have, the answer is not farfetched – they are transported by air ambulance.
Starting an air ambulance company requires huge startup capital. Purchasing one well – equipped air ambulance can be very expensive and this is excluding the amount required to hire pilots, professional nurses and doctors amongst other key staff. So, as a rich and accredited investor, one of the investment vehicles you should consider is to start an air ambulance company.
- Electric Power Plant
Although in most countries of the world, private investors are not allowed to own electric power plants for obvious reason; even if they do, the power generated will be transferred to the national grid. Starting an electric power plant is a very lucrative business, especially in developing countries where they are still struggling to attain stable electric supply.
As an accredited and rich investor who is looking for a good investment opportunity to leverage on, then one of your options is to set up an electric power plant especially if you are in a country where the government gives free hand to private investors, the generate and sale electric power. This type of investment vehicle requires huge startup capital and of course the required license and clearance from the government, and not ignoring the amount needed to setup power plants and to hire and pay your workers
There you have it! 20 types of investment opportunities exclusively available to rich and accredited investors. If you are an accredited investor, go through the opportunities one after the other, and choose the one that appeals to you the most. Remember, nothing beats investing your money in a very promising platform that can yield multiple returns for you.