4) Invest in Index Funds or Mutual Funds
Index funds and mutual funds are still better investment options rather than keeping money in a bank account. For a 5 years lockin, the returns from mid-risk mutual funds are around 15-20% per annum. That’s almost 3 times higher than what you’ll be getting from the bank.
- Investment Amount: 10% or $12000 in 5 years
- Normalized Return on Investment on 6th Year: $4500 (Multiplier: approx 2X)
While the returns are high, mutual funds are subjected to market volatility and expert advice is always recommended.
5) Invest in Japan Stock Exchange
If you look at Japan as a country, it is governed by strong principles, simple living, and strong work culture. You can do your own due diligence and consider investing in one of the five stock exchanges in Japan. Such investments are capable of giving you both short term and long term returns. The Tokyo stock exchange is listed 4th and more than anything businesses run on values and principles. Given a choice, I would definitely make some long term investments in the Tokyo stock exchange.
- Investment Amount: 5% or $6000 in 5 years
- Normalized Return on Investment on 6th Year: $2400 (Multiplier: 2X)