Even though your funds grow significantly with returns of 5% or 6%, they might appear to increase slowly—especially when you’re just beginning. Therefore, achieving a guaranteed 10% return on investment holds great appeal for numerous investors.

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If you belong to that category, you could be looking for the rare high single-digit interest rate. Let’s explore some options that boost your likelihood of securing a consistent 10% return on investment.

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What Does Return on Investment Mean?

Return on Investment, commonly referred to as ROI, indicates the profit or loss generated from an investment relative to its cost. This figure is expressed as a percentage and aids in assessing and comparing the performance of various investment opportunities.

When seeking an assured 10% return on your investment, understanding ROI can help you determine potential earnings or losses, considering the associated risks.

How to Ensure a Minimum 10% ROI

Remember that higher returns typically come with increased risk — you won’t get 10% yearly yields.
high-yield savings accounts
.

For instance. However, if you’re okay with assuming additional risk in pursuit of potentially greater rewards, these investment options might be suitable for your portfolio.

1. Long-term stock investing
2. Forex trading
3. Cryptocurrency
4. Real estate
5. Peer-to-peer lending
6. Fine art
7. Debt repayment
8. Your career
9. Employer-sponsored 401(k)
10. Buy a business

1. Long-Term Stock Investing

• 
  Rating
  
  : 4/5 stars
• 
  Risk
  
  : High
• 
  Who It’s Best For
  
  : Investors who remain patient and focus on the long term

For investors who want
strong long-term performance
The stock market stands out as one of the most effective investment options. From 1928 to 2022, the S&P 500 delivered an average annual return of 11.51%, yet it experienced 12 instances where losses exceeded ten percent within a single year. Consequently, individuals investing in stocks should brace themselves for extended stretches of challenges. It’s not a shortcut to rapid wealth accumulation. Nonetheless, over lengthy durations, the stock market offers a promising avenue to achieve around 10% yields annually.

There are several methods to harness the earnings potential of the stock market. For many investors, a low-cost growth fund represents the easiest approach.

Growth funds put money into businesses that fund managers see as having strong potential for considerable and lasting expansion. Although they come with higher risk, such investments might show growth rates far exceeding those of the broader market. As an illustration, the Baron Partners Fund Retail Shares has reported average yearly gains of 0.04% over three years, 23.82% over five years, and 18.06% over ten years.

If growth funds seem too volatile for your taste, a broad index fund could yield over 10%, even though not as steadily. For instance, Fidelity’s 500 Index Fund serves well, offering yearly returns of 9.58%, 14.98%, and 13.14% for the past three, five, and ten years correspondingly.

An alternative could be a dividend fund. By reinvesting these dividends, you can readily achieve returns exceeding 10%, which also offers potential earnings in later stages.

2. Forex Trading

• 
  Rating
  
  : 3 out of 5 stars
• 
  Risk
  
  : Very high
• 
  Who It’s Best For
  
  : Traders who are seasoned and at ease with high-risk situations

Foreign currency exchange, or
forex, trading
Is a more user-friendly option compared to day trading, which necessitates having at least a $25,000 balance in a margin account.

Foreign exchange trading entails exchanging currency pairs, which means dealing with money from two different nations. When an investor buys one currency, they simultaneously sell another. A profitable transaction occurs when the exchange rate works in favor of the trader, for instance, when the value of the currency being sold rises compared to the currency bought.

Foreign exchange trading generally lacks regulation, making it more hazardous compared to stock trading. Additionally, it might become costly should your broker impose steep charges. Nonetheless, you have the option to set up a practice account to get acquainted with the process before committing actual funds once you feel prepared to engage in live trades.

In time, you could progress to a stage where your investment yields returns of a few percentage points each month.

3. Cryptocurrency

• 
  Rating
  
  : 3 out of 5 stars
• 
  Risk
  
  : Extremely high
• 
  Who It’s Best For
  
  Investors open to accepting market fluctuations for the potential of substantial gains.

Crypto trading receives the majority of the attention.
crypto-investment
-associated news stories, and rightly so. Several leading cryptocurrencies have witnessed gains surpassing the 10% threshold. However, it’s common knowledge that cryptos are highly unpredictable, with sudden drops possible at any time. As such, knowledgeable crypto investors seek alternative methods to generate returns from their digital assets.

A method is via staking, where you lock away your cryptocurrency to enable it to be used by network validators for processing transactions. While your crypto is staked, it generates interest for you—potentially as high as 30% annually, as reported by Cointelegraph.

Instead, consider combining two distinct tokens and depositing them into a liquidity pool—a collection of funds designed to maintain a blockchain’s capability for exchanging cryptocurrency for fiat currency. This practice is known as yield farming, which may offer extremely lucrative returns depending on the token combination chosen. According to Wired, this method poses greater risks compared to staking, with higher volatility leading to potentially larger rewards. However, even though some pools might provide annual percentage yields (APY) exceeding 10,000%, an offering around 10% would still appear relatively moderate in comparison.

4. Real Estate

• 
  Rating
  
  : 4/5 stars
• 
  Risk
  
  : Moderate to high
• 
  Who It’s Best For
  
  Investors seeking physical properties and revenue streams

Property investment is an excellent choice as everyone needs a space to reside irrespective of how the economy performs. That said, this does not imply that property investments are flawless. Different regions may experience varying levels of demand; some areas might thrive while others struggle. Nonetheless, local real estate sectors often operate independently and typically do not mirror the fluctuations seen in the stock market.

Moreover, real estate investments can offer various distinct benefits such as generating cash flow, enjoying tax incentives, and utilizing leverage. The primary challenge when venturing into real estate investment typically lies in overcoming the high initial cost of purchasing property. Nevertheless, more affordable avenues to begin your journey are available nowadays.

One approach is to function as a
hard money lender
Also known as a private money lender, these individuals offer financial resources to other investors like real estate flippers and wholesalers instead of purchasing properties themselves. When investing this way, your funds remain tied up until the project concludes—withdrawals aren’t allowed midway through. However, it’s quite common for private lenders to achieve an annual return ranging from 12% to 15%.

High-interest loans can be perilous. Usually, only big-time investors have claims on the property — others generally face tough times if the venture doesn’t become profitable. Nonetheless, a seasoned rehabber who has proven success can yield good returns for backers within a brief timeframe.

If that amount is still higher than what you’re willing to spend, look into more cautious alternatives like real estate exchange-traded funds instead.
real estate investment trusts
Although these investments come with certain disadvantages like transaction costs and limited use of leverage, you can begin with minimal capital.

Regardless of how you decide to invest, real estate holds significant promise for yielding returns as high as 10%.

5. Peer-to-Peer Lending

• 
  Rating
  
  : 3 out of 5 stars
• 
  Risk
  
  : High
• 
  Who It’s Best For
  
  Investors seeking alternate borrowing choices

If you’ve ever used a credit card, you’re aware of how profitable it can be to lend money to people. Many credit cards charge interest rates above 20%, after all. Peer-to-peer lending follows this same idea but makes you the lender instead. In these cases, those borrowing could be individual persons or enterprises bypassing traditional banks for various reasons.

You likely won’t get returns as high as with credit cards.
APRs
Some investors have achieved returns exceeding 10% as stated by Yieldstreet; however, Kiplinger suggests that average outcomes usually hover around 5%. Should you be inclined towards accepting higher risks for the chance at greater rewards, then this might be an avenue worthy of investigation.

6. Fine Art

• 
  Rating
  
  : 3 out of 5 stars
• 
  Risk
  
  : Moderate
• 
  Who It’s Best For
  
  : Investors with a fervent interest in art

The top reason for purchasing art is undoubtedly the happiness it provides, however, it’s even more advantageous if the piece appreciates over time. While considering art as an investment, studies from RBC Wealth Management show that its returns typically trail those of the S&P 500 by several percentage points. Nonetheless, this does not prevent one from selecting artworks expected to surpass market performance.

Royal Bank of Canada suggests starting with purchasing things you love—most investors say their main drive for collecting art stems from their passion for it. From a financial perspective, here are some tips that can assist you in making selections which might prove profitable over time:

• Study art and artists to understand the market dynamics and how to distinguish genuine quality from mere publicity.
• Connect with artists, gallery proprietors, art dealers, and fellow collectors.
• Stay receptive to art pieces that aren’t just paintings.

If your finances don’t permit buying original artwork, look into acquiring fractional shares via platforms such as Masterworks. As stated by Masterworks, their members invest in and exchange stakes of “multi-million dollar, high-end artworks.”

A key advantage of investing this manner is distributing your investment funds among various artworks to create a diversified art collection.

7. Debt Repayment

• 
  Rating
  
  5 out of 5 stars
• 
  Risk
  
  : Low
• 
  Who It’s Best For
  
  People aiming to enhance their monetary well-being

In the first quarter of 2024, credit card holders were charged interest rates exceeding 22%, whereas those with personal loans faced rates above 12%. Clearing these high-interest obligations ensures returns equivalent to your respective interest rates.

If you lack the funds to settle your outstanding balances, think about obtaining a balance-transfer credit card that offers a 0% introductory annual percentage rate. Keep in mind though, once this promotion ends, you’ll revert to higher interest rates should you still carry a balance.

8. Your Career

• 
  Rating
  
  5 out of 5 stars
• 
  Risk
  
  : Low to moderate
• 
  Who It’s Best For
  
  Professionals aiming for career advancement

Switching careers is an investment that can yield returns exceeding 10%. According to Zippia, the typical salary boost from switching jobs averages around 14.8%.

You can increase your income by obtaining a professional certification, either in your current industry or in a new sector you’re interested in. These certifications cover numerous areas such as IT, healthcare, and tech related to energy.

9. Employer-Sponsored 401(k)

• 
  Rating
  
  : 4/5 stars
• 
  Risk
  
  : Varies
• 
  Who It’s Best For
  
  : Staff members who have access to matching contributions

A 401(k), which is a retirement savings plan provided by certain employers, comes with multiple investment choices. Some of these investments could potentially yield returns as high as 10% or even greater. However, what makes them particularly advantageous are their additional benefits, leading to an actual return on investment that often surpasses 10%.

Firstly, your contributions come from pretax income, allowing your funds to grow without taxes. Should you find yourself in a lower tax bracket during withdrawal in retirement, you stand to save significantly on taxes.

What’s more, some employers
match employee contributions
Up to a specific limit — either 50% or 100% of what you contribute, such as 3% of your salary, or perhaps 100% on the first 3%, followed by an additional 50% on another 2%. It’s like getting extra cash added directly into your account at no cost, boosting your earnings according to the matching ratio provided.

It’s quite probable that you’ll have to stay with your company for an extended period so as to own all the matching contributions—this process is known as vesting. Numerous companies implement a vesting schedule, under which you gain ownership of a specific portion of these matching funds annually; alternatively, some firms may grant full vesting immediately once a particular service duration has been completed.

10. Buy a Business

• 
  Rating
  
  : 3 out of 5 stars
• 
  Risk
  
  : High
• 
  Who It’s Best For
  
  Entrepreneurs keen on embracing the challenge of owning their own businesses

Investing substantial funds into your own startup can be perilous, let alone highly demanding and time-intensive. Buying one
established small business
, conversely, offers you the advantage of benefiting from the current owner’s accumulated hard work and experiences, and with minimal training, allows you to seamlessly continue from where they stopped.

You can discover businesses for sale in your area via a local real estate agent, newspapers, and online classifieds, or explore marketplaces like LoopNet. Should you prefer not to take such a significant step, consider investing in an e-commerce venture that you can manage part-time from home. Websites like Flippa offer more than 4,000 listings of online enterprises and digital properties, encompassing sites, Amazon storefronts, domain names, and mobile applications.

There’s no assurance that your new venture will yield a 10% return. Boost your chances by selecting an enterprise within a steady sector, backed by a solid history and demonstrated earnings.

Takeaway

You might see yields of around 10% from various kinds of investments, yet it’s wise not to concentrate all your funds in just one category. Spread out your resources as widely as possible; this way, should an investment falter, the remaining ones will still provide support.

Furthermore, it’s always prudent to revisit your investment strategy with a
financial advisor
before fully committing.

Bob Haegele
were involved in compiling this report.

The article you read was processed using automated technology and later reviewed and confirmed for precision by an editor from our team.

The information provided is current as of October 18, 2024.

The piece initially surfaced on
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How to Achieve a 10% Return on Investment (ROI): 10 Tested Strategies