Top 5 Investment Assets with the Highest ROI

​Investing in various assets can be an effective way to grow your wealth and achieve financial goals. However, it's crucial to choose investment assets wisely based on their potential returns and your individual risk tolerance. In this article, we will explore the top five investment assets known for generating high rates of return in the last five years.

Here are the top 5 investment assets that can generate the highest rate of return:

1. Stocks. Stocks are shares of ownership in a company. When you buy stocks, you are essentially buying a piece of the company. Stocks have the potential to generate high returns, but they also come with the risk of losing money. The average annualized ROI in the last five years is 12%.
2. Commercial Real Estate Net Lease (“CRE-NNN”). Commercial Real Estate Net Lease can be a great way to build wealth over time. The value of CRE-NNN portfolio tends to appreciate over time, and you can also generate income from rent. However, real estate can also be illiquid, meaning it can be difficult to sell quickly. The average annualized ROI in the last five years is 7%.

3.  Private Equity. Private equity is a type of investment that involves investing in privately held companies. Private equity investments can be very profitable, but they also come with a high degree of risk. The average annualized ROI in the last five years is 15%.

4.  Venture Capital. Venture capital entails investing in early-stage companies that show potential for rapid growth. While venture capital investments come with substantial risks, they can yield exceptionally high returns. Over the past five years, the average annualized ROI for venture capital investments has been 20%.
​

5.  Cryptocurrencies. Cryptocurrencies are digital or virtual currencies secured through cryptography. Although highly volatile, they offer the potential for significant returns. It's important to approach cryptocurrency investments with caution due to their unpredictability. On average, cryptocurrencies have demonstrated an annualized ROI of 30% over the last five years.​

Factors to Consider When Choosing Investment Assets

When selecting investment assets, consider the following factors. The best investment asset for you will depend on your individual risk tolerance and investment goals.
Here are some additional factors to consider when choosing investment assets:

1. Your risk tolerance: 

• Your age: younger investors typically have a higher risk tolerance than older investors. This is because younger investors have more time to recover from losses, and they may be more willing to take on risk in the hopes of achieving higher returns.
• Your income: Your income can also affect your risk tolerance. If you have a high income, you may be able to afford to take on more risk because you have more money to fall back on.
• Your investment goals: Your investment goals will also affect your risk tolerance. If you're saving for retirement, you may be willing to take on more risk because you have a longer time horizon. However, if you're saving for a short-term goal, such as a down payment on a house, you'll need to be more conservative with your investments.
• Your emotional state: Your emotional state can also affect your risk tolerance. If you're prone to anxiety or stress, you may be more comfortable with investments that have a lower risk of losing money.
  

Here are some additional questions that you can ask yourself to help you determine your investment risk tolerance:

• How comfortable are you with the idea of losing money?
• How much time do you have to reach your investment goals?
• How much money do you need to reach your investment goals?
• How much risk are you willing to take to reach your investment goals?
• Once you've answered these questions, you'll have a better idea of your investment risk tolerance. This will help you choose the right investments for your financial goals.
  

2.  Your investment goals: What are you hoping to achieve with your investments?

• Specificity: Your investment goals should be specific and measurable. For example, instead of saying "I want to save for retirement," you could say "I want to have $1 million saved by the time I'm 65."
• Timeline: Your investment goals should also have a timeline. For example, you might say "I want to have $1 million saved by the time I'm 65," or "I want to have a down payment of $20,000 saved for a house within the next 5 years."
• Achievability: Your investment goals should be achievable. If your goals are too ambitious, you're less likely to achieve them. If your goals are too conservative, you may not be taking advantage of all the potential growth opportunities.
• Relevancy: Your investment goals should be relevant to your overall financial situation and goals. For example, if you're saving for retirement, you may not want to invest in a high-risk investment that could jeopardize your retirement savings.
• Flexibility: Your investment goals should be flexible enough to accommodate changes in your life. For example, if you have a child, you may need to adjust your investment goals to accommodate the additional expenses.

Here are some examples of different investment goals:

• Retirement: Saving for retirement is one of the most common investment goals. You can save for retirement in a variety of ways, including through 401(k)s, IRAs, and taxable accounts.
• Down payment on a house: Saving for a down payment on a house is another common investment goal. You can save for a down payment in a variety of ways, including through savings accounts, CDs, and taxable accounts.
• Child's education: Saving for your child's education is another important investment goal. You can save for your child's education in a variety of ways, including through 529 plans, Coverdell ESAs, and taxable accounts.
• Other goals: There are many other possible investment goals, such as saving for a wedding, a vacation, or a new car.
• It's important to remember that your investment goals can change over time. As your life changes, you may need to adjust your investment goals accordingly.

 
3.  Your time horizon: How long do you have until you need to access your money? If you are saving for retirement, you may want to allocate a higher percentage of your portfolio to bonds and real estate.

• Short-term: A short-term time horizon is typically less than 3 years. Investments with a short-term time horizon are typically less risky, such as money market funds, US Treasury Bond, or CDs.
• Medium-term: A medium-term time horizon is typically 3 to 10 years. Investments with a medium-term time horizon can be more risky, such as stocks or bonds.
• Long-term: A long-term time horizon is typically 10 years or more. Investments with a long-term time horizon can be riskier, such as stocks or real estate.
• The length of your time horizon will affect the types of investments that you can choose. For example, if you have a short-term time horizon, you'll need to choose investments that are less risky and that are more likely to preserve your capital. If you have a long-term time horizon, you can choose investments that are riskier and that have the potential to grow your capital over time.
• It's also important to remember that your time horizon can change over time. For example, if you're saving for a down payment on a house, you'll need to choose investments that are less risky and that are more likely to preserve your capital. However, if you're saving for retirement, you can choose investments that are riskier and that have the potential to grow your capital over time.

Here are some additional questions that you can ask yourself to help you determine your time horizon:

• When do you need the money?
• What are your investment goals?
• How much risk are you willing to take?
• What is your financial situation?

Once you've answered these questions, you'll have a better idea of your time horizon. This will help you choose the right investments for your financial goals.
 
4.  Your financial situation: How much money do you have to invest? Or if you have a high income, you may be able to afford to allocate a higher percentage of your portfolio to riskier assets.

• Income: Your income is one of the most important factors in your financial situation. It determines how much money you must save and invest.
• Expenses: Your expenses are also important to consider. They determine how much money you have left over after you pay your bills.
• Assets: Your assets are what you own. They can include your home, your car, your investments, and your savings.
• Debts: Your debts are what you owe. They can include your mortgage, your car loan, your credit card debt, and your student loans.
• Liquidity: Your liquidity is how much cash you have on hand. It's important to have enough liquidity to cover your monthly expenses and unexpected expenses.
• Net worth: Your net worth is the difference between your assets and your debts. It's a measure of your financial health.

Here are some additional questions that you can ask yourself to help you determine your financial situation:

• What is your income?
• What are your expenses?
• What are your assets?
• What are your debts?
• How much liquidity do you have?
• What is your net worth?

Once you've answered these questions, you'll have a better idea of your financial situation. This will help you make informed decisions about your finances.
​
Here are some additional factors that can affect your financial situation:

• Your age: Your age can affect your financial situation in several ways. For example, if you're young, you may have less debt and more time to save for retirement. However, if you're older, you may have more assets and more income.
• Your family status: Your family status can also affect your financial situation. For example, if you have children, you'll have more expenses. However, you may also have more income if you have a partner who works.
• Your health: Your health can also affect your financial situation. For example, if you have a chronic illness, you may have more expenses. However, you may also have more income if you have health insurance.
• Your employment status: Your employment status can also affect your financial situation. For example, if you're unemployed, you'll have less income. However, you may also have less expenses if you're not working.
• It's important to consider all of these factors when determining your financial situation. The more you know about your financial situation, the better equipped you'll be to make informed decisions about your finances.

 
It is important to do your research and talk to a financial advisor before making any investment decisions.
 
It is important to note that these are just averages, and the actual ROI of each asset class will vary depending on the specific investment. For example, the ROI of stocks will vary depending on the specific stocks you invest in, and the ROI of real estate will vary depending on the specific properties you invest in.

It is also important to note that the ROI of each asset class can change over time. For example, the ROI of stocks has been higher in recent years than it was in the past. This is because the stock market has been on a bull run in recent years. However, the ROI of stocks could decline in the future.

The best way to determine the ROI of an investment asset is to consult with us.  We can help you assess your individual risk tolerance and investment goals, and they can recommend specific investment assets that are right for you.

In summary, we discuss the top 5 investment assets with the highest return on investment (ROI) in the last five years. The assets include stocks, commercial real estate net lease (CRE-NNN), private equity, venture capital, and cryptocurrencies.

1. Stocks have the potential for high returns but come with the risk of losing money. The average annualized ROI in the last five years is 12%.
2. CRE-NNN is a way to build wealth through real estate. The average annualized ROI in the last five years is 7%. Real estate can be illiquid, meaning it can be difficult to sell quickly.
3. Private equity involves investing in privately held companies and has an average annualized ROI of 15%. It comes with high risks.
4. Venture capital entails investing in early-stage companies with potential for rapid growth. It has an average annualized ROI of 20% but also comes with substantial risks.
5. Cryptocurrencies are highly volatile but offer the potential for significant returns. The average annualized ROI in the last five years is30 However, caution is necessary due to their unpredictability.

Factors to consider when choosing investment assets include risk tolerance, investment goals, time horizon, and financial situation.  These factors help determine the appropriate asset allocation that aligns with an individual's needs and preferences. It is important to research and consult with us before making investment decisions.

​IMPORTANT NOTICE: This is unsolicited information and/or a private, proprietary, and confidential communication and is for information purposes only. This is not intended to be and must not be construed to be in any form or manner a solicitation of investment funds or a security offering.
 
DISCLAIMER: DAJK is NOT a Securities Dealer or Broker or Investment Adviser. DAJK is a consultant and makes no warranties or representations as to the validity of the Program and is compensated for introducing clients only. All due diligence is the responsibility of the Buyer and Seller. This blog and related documents are never to be considered a solicitation for any purpose in any form or content. Upon receipt of these documents, the Recipient hereby acknowledges this Disclaimer. If acknowledgment is not accepted, the Recipient must return all documents in their original receipted condition to Sender.

Contact Us