Invest Wisely: Strategies For Interest-Free Returns

Investing without earning interest is a challenge, and some would argue that it's not investing at all. However, there are options for those who want to grow their money without earning interest, perhaps for religious reasons. These include investing in value funds that pay dividend yields, collectibles like art or coins, or even real estate. Another option is to invest in US debt through Treasury securities, but this does come with risks.

Real estate

Another option is to invest in a business and then reap the dividends. This is not considered usury as long as you're buying an equity stake and not issuing a loan. However, it's important to note that this may depend on your religious affiliation, as kosher and halal practices differ in this regard.

If you're looking for short-term options to make some side money without interest, you could consider investing in collectibles like art or coins. These items don't pay interest, but their value can appreciate over time, providing you with a potential profit if you sell them at the right time.

Additionally, you can invest in value funds that pay dividend yields. While this may act like interest, it is not technically considered interest. This option provides accessible cash growth in the form of income, but some may view it as a loophole.

Collectibles

If you want to invest without interest, you could consider collectibles. Art, coins and other collectibles don't pay interest, but they can be a good way to grow your money.

Investing in collectibles can be a good option if you're looking for a long-term investment. The value of collectibles can increase over time, so if you're patient, you could see a good return on your investment.

It's important to do your research before investing in collectibles. You'll need to understand the market and know what types of collectibles are in demand. It's also important to find a reputable dealer or auction house to buy from.

When investing in collectibles, it's crucial to diversify your portfolio. Don't put all your eggs in one basket, so to speak. Invest in a variety of different collectibles to spread your risk.

Finally, remember that investing in collectibles is not without risk. The value of collectibles can go down as well as up, and there's no guarantee that you'll make a profit. So, make sure you do your due diligence and only invest what you can afford to lose.

Value funds

If you want to invest without earning interest, one option is to invest in value funds that pay dividend yields. Dividend yields are distributed to your account, acting like interest without being called interest. This is a good option if you want accessible cash growth in the form of income.

When investing in value funds, it's important to do your research and carefully consider the risks involved. Value funds can be more volatile than other types of investments, as they are often investing in companies or assets that may be struggling or undervalued by the market. However, this also means that there is potential for higher returns if the companies or assets perform well.

It's also important to diversify your investments when investing in value funds. This means investing in a variety of different companies or assets, rather than putting all your money into one or two investments. By diversifying, you can reduce the risk of losing money if one of your investments doesn't perform well.

Finally, it's worth noting that investing in value funds may not be suitable for everyone. If you are looking for a more stable and guaranteed return on your investment, other types of investments may be more appropriate. However, if you are comfortable with the risks and potential rewards, value funds can be a good option for those looking to invest without earning interest.

Business equity

If you are looking to invest without interest, you could consider investing in business equity. This is permissible in some religions, as long as you are buying an equity stake and not issuing a loan. For example, investing in a company's 401k or IRA is a way to invest without earning interest.

Another option is to invest in value funds that pay dividend yields. These yields are distributed to your account and act like interest without being called interest. You could also consider investing in collectibles like art or coins, which do not pay interest.

If you are looking for short-term options to make some side money, you could seek advice from your local house of worship or look for a mentor there who can guide you.

It's important to note that investing without earning a return is not truly investing, as pointed out by some. However, if you are looking for accessible cash growth, investing in value funds or collectibles could be an option to consider.

Treasury securities

Non-marketable securities include savings bonds, issued to individuals; the State and Local Government Series (SLGS), purchaseable only with the proceeds of state and municipal bond sales; and the Government Account Series, purchased by units of the federal government.

Frequently asked questions