Best Investments for 2013

With a plethora of investment options, it is very important to know which sectors will be profitable for investors in 2013. In this write-up, we will take a look at some of the best investments in 2013. Now that we have survived the 'Mayan doomsday', the focus should shift on planning our investments wisely, so that we don't face a 'financial doomsday'! Although 2013 started on a good note with the Congress passing the tax laws at the eleventh hour, there is a long way to go as far as investments are concerned.

The previous year was unpredictable to say the least, and some investors learned hard lessons about the need of patience, perseverance, and sound strategy in the financial market. In 2013, the aim should be to focus on those investment options, which have a likelihood of offering decent returns. In the following paragraphs, we will take a look at some of the best investments for 2013.

Gold and Precious Metals
Finance experts are of the opinion that gold will continue to grow in 2013, and investing in gold and silver can be beneficial for investors. By the end of 2013, we can expect gold prices to reach anywhere between $1900 - $2100 an ounce. Considering the fact that gold price at the end of 2012 stood at $1,675 an ounce - up by approximately 6% from December 2011 - investors can expect decent returns on their investment this year as well. In 2007and 2008, the worst years of sub-prime crisis, gold saw an increase of 15% and 25% respectively. Another statistic that substantiates the claim that gold is a sound investment is the fact that from $272 an ounce in 2000 to $1675 an ounce in 2012, gold has grown steadily - year in and year out. Silver too, has grown from $5 an ounce in 2000 to $30 in 2012, and is another option for investors in 2013.

The reason behind the high demand for gold and silver is that most people look at these not only as an investment, but also as a means of security in the economically-turbulent times. Also, central banks in developing countries, in a bid to diversify their reserve holdings, invest heavily in gold and silver. The high demand for gold makes it an asset which you should consider in 2013. Gold, silver, and other precious metals can be traded in the stock exchange through exchange-traded funds. Some ETFs you might you can consider in 2013 are:ProShares Ultra Gold - UGL ETFS Physical Swiss Gold Shares - SGOL SPDR Gold Shares - GLD iShares Silver Trust - SLV PowerShares DB Silver Fund - DBS PowerShares DB Precious Metals Fund - DBP (Source: The Street)

Expected Returns: 11% to 20%

Risk: High

Mutual Funds
Investors are upbeat about the prospects of earning a decent yield from mutual funds in 2013. In the previous year, the average return for domestic mutual funds was 13.87%. Global mutual funds, on the other hand, yielded 17.68% on an average. Analysts say one of the factors people will invest highly in mutual funds in 2013 is that the trust and momentum in equities has taken a hit because of the sub-prime crisis, and people are now wary of entering the equity market. Some of the recommended mutual funds for 2013 are:Fidelity Adv Real Estate Income A - FRINX Fidelity Adv Consumer Staples A - FDAGX Fidelity Select Pharmaceuticals - FPHAX Invesco Select Companies A - ATIAX James Advantage Small Cap Value A - JASCX Hennessy Focus Investor Wells Fargo CoreBuilder Shs - Srs M - WFCMX Oppenheimer Limited Term Muni A - OPITX Sit MN Tax Free Income - SMTFX Janus Global Life Sciences A - JFNAX INTECH US Growth A - JDRAX Oppenheimer Limited Term Muni A - OPITX Oppenheimer Ltd Term NY Muni A - LTNYX Vanguard Health Care Inv - VGHCX Robeco Boston Ptrs Lg/Sh Equit Inv - BPLEX Value Line Asset Allocation - VLAAX T Rowe Price Cap Appreciation - PRWCX GMO US Growth Fund III - GMGWX Delaware Large Cap Value Eqty Artisan Global Value Inv - ARTGX ING Corp Leaders Trust - LEXCX JPMorgan Mid Cap Value A - JAMCX ING Morgan Stanley Gbl Fr A - IGFAX Smead Value Fund Investor - SMVLX Vanguard Cons Stap Idx Adm - VCSAX SEI Inst Inv Managed Vol Fund A - SVYAX Wells Fargo CoreBuilder M - WFCMX Fidelity Adv Real Estate Inc A - FRINX (Source: The Street)

Expected Returns: 8% to 12%

Risk: Moderate

Blue Chip Stocks
Blue chip stocks can be a safe bet for people who are looking for a long-term investment. These stocks have the reputation of performing reasonably, even during an economic downturn. These stocks have offered a steady Return On Investment (ROI) in the past, and there is every likelihood of the situation remaining the same in 2013 as well. Many will argue that investors can get higher ROI if they invest in emerging, relatively lesser-known companies, but the risk will we relatively higher. The government has just averted the fiscal cliff, but future tax laws can deeply impact the performance of the stock market, and if that happens, penny stocks will be the first ones to take a hit. Even if blue chip stocks go down, investors shouldn't hit the panic button as the fundamentals of these companies are pretty strong, and there will always be scope for a recovery. Taking into account all the considerations, we will advise investors to have blue chip stocks in their portfolio. Some stocks which you can consider are:American Capital Agency Corp - AGNC Southern Copper Corp - SCCO NuStar Energy L.P. - NS AT&T Inc - T STMicroelectronics N.V. - STM Lockheed Martin Corp. LMT Eli Lilly & Co. - LLY Paychex Inc - PAYX H & R Block, Inc. - HRB Goodyear Tire & Rubber - GT United Parcel Service Inc - UPS Caterpillar Inc. - CAT Cummins Inc. - CMI Apple - AAPL Bank of America - BAC McDonald's Corporation - MCD The Boeing Company - BA Target Corporation - TGT Hewlett-Packard - HPQ Cliffs Natural Resources - CLF (Source: Forbes, JPMorgan, CNBC, Nasdaq)

Expected Returns: 10% to 15%

Municipal Bond Funds
Meredith Whitney may have been correct on speculating the sub-prime crisis, but her prediction on municipal bonds defaults is yet to materialize. Most investors still rank municipal bonds highly as investment options for 2013. One of the prime reasons is the tax-exemption that munis have to offer. The default rate on munis is lesser than that on corporate bonds, so an investor has a pretty high chance of receiving his investment upon maturity. We suggest munis as a safe investment, because historically, most bonds have been able to retain their value, while earning interest for the investor at the same time. Some states whose municipal bonds are worth considering in 2013 are South Dakota, Iowa, Tennessee, and North Carolina.

Expected Returns: 4% to 7%

Risk: Low
Choosing your investments wisely can be the key factor in 2013. We advise you to do your research before making an investment. Wishing you an economically prosperous 2013!

Author: Charlie S