Most financial experts agree that investing in the oil industry can give you excellent returns. This kind of investment is considered low risk because oil prices may drop but they always bounce back. So, what’s the best way to invest in oil in the 21st Century? Let’s check out some of the available options to see.
Mutual Funds
Mutual funds are a good way to lessen your investment risks, and many people consider it the best way to invest in oil. You invest in a company that buys stocks from several businesses, and your risks are not tied to just one company.
Large Company Stock
If you want in invest in companies traded publicly, you can take your chances with Exxon-Mobile, or you can invest in foreign markets with companies like Royal Dutch Shell or British Petroleum. This is a good way for the unaccredited investor (people with limited funds, assets, or incomes) to enter the market and invest in crude oil. You receive dividends quarterly based on company earnings and can buy low and sell high with the right investments.
3. Oil Futures
If you understand stock options, you have a good idea of how crude oil futures work. This kind of investing comes with a great deal more risk than mutual funds or stocks. However, with greater risks, you can receive greater rewards. On the other hand, you also may have greater losses.
4. Crowdfunding Programs
Until May of 2016, crowdfunding offered opportunities for people to fund worthy projects by making donations. However, today this concept is perhaps the best way to invest in oil. You may invest in drilling projects, wells, and things only accredited investors could get access to until now. For example, you don’t need to own over a million dollars in assets and investments start as low as one thousand dollars.
If you are looking for the best way to invest in oil, come to Crudefunders.