10 Best Investment Options for Salaried Persons in 2022

investment options for salaried persons

What are some best investment options for salaried persons? 


In 2022, savings and investments go hand-in-hand. Throughout the world, numerous individuals are dependent on their salaries for sustaining their livelihood. With inflation, a plunging global economy and other financial degraders being on the verge, it is important to be attentive to managing expenses and savings. 


In order to be able to handle expenses, one has to look for alternate sources of income or something that transforms savings into wealth. You can look for various investment options to amplify your savings. In this blog, we have curated a list of the best investment options for salaried persons to seek in 2022. 


10 Best Investment Options for Salaried Persons

  • Growth Stocks


Growth stocks are one of the best investment options for salaried persons. They promise high growth and high investment returns. Although they are often tech companies, growth stocks do not necessarily have to be as such. Generally, they plow all their profits back into the business, and hence, they rarely pay out a dividend (at least not until their growth slows). 


However, growth stocks can be risky because often investors will pay a lot for the stock relative to the company’s earnings. 

  • Stock Funds


Stock funds are an excellent choice for those investors who want to be more aggressive by using stocks but don’t have the time or desire to make investing a full-time hobby. If you buy stock funds, you will get the weighted average return of all the companies in the fund. Thus, the fund will generally be less volatile than if you had held just a few stocks.


A stock fund is less risky than buying individual positions and less work, too. But it can still move quite a bit in any given year, perhaps losing as much as 30 percent or even gaining 30 percent in some of its more extreme years.

  • Bond Funds


Bond funds contain many bonds from a variety of issuers. They are typically categorized by the type of bond in the fund. These are the bond’s duration, its riskiness, the issuer (corporate, municipality or federal government) and other factors. In case you are looking for a bond fund, there are a variety of fund choices to meet your needs.


When a company or government issues a bond, it agrees to pay the bond’s owner a set amount of interest annually. At the end of the bond’s term, the issuer repays the principal amount of the bond, and the bond is redeemed.

  • Rental Housing or Real Estate


Rental housing is one of the best investment options for salaried persons. It can be a great investment if you have the willingness to manage your own properties. And with mortgage rates still near all-time lows, it could be a great time to finance the purchase of a new property, though the unstable economy may make it harder to actually run it.


To pursue this route, you will have to select the right property, finance it or buy it outright, maintain it and deal with tenants. Rental housing is a good investment for long-term investors who want to manage their own properties and generate regular cash flow.

  • Cryptocurrency


In 2022, cryptocurrency is considered one of the best and in-demand investments. For salaried individuals, can be a great investment option, to begin with. Cryptocurrencies are a kind of digital electronic-only currencies that are intended to act as a medium of exchange. It has become a hot property in the last few years in particular, as dollars have flown into the asset, pushing up prices and drawing even more traders to the action.


Cryptocurrency is good for risk-seeking investors who would not mind if their investment goes to zero in exchange for the potential of much higher returns. However, it is not a good choice for risk-averse investors or those who need any kind of safe investment.

  • Small-cap Stocks


Small-cap stocks are often in demand among investors since they have the potential to grow quickly or capitalize on an emerging market over time. Interestingly, retail giants like Amazon started out as small-cap stocks and made investors who held on to the stock wealthy. 


Like high-growth stocks, small-cap stocks tend to be riskier. Small companies are just more risky in general because they have fewer financial resources, less access to capital markets and less power in their markets (less brand recognition, for example). But well-run companies can do very well for investors, especially if they can continue growing and gaining scale.


The reward for finding a successful small-cap stock is immense, and you could easily find 20 percent annual returns or more for decades if you’re able to buy a true hidden gem such as Amazon before anyone can really see how successful it might eventually become.

  • Short-term Corporate Bond Funds


Sometimes, corporations raise money by issuing bonds to investors, and these can be packaged into bond funds that own bonds issued by potentially hundreds of corporations. Short-term bonds have an average maturity of one to five years, which makes them less susceptible to interest rate fluctuations than intermediate or long-term bonds.


Corporate bond funds can be an excellent choice for investors looking for cash flow, such as retirees, or those who want to reduce their overall portfolio risk but still earn a return.

  • S&P 500 Index Funds


If you are on the lookout for achieving higher returns than other traditional banking products or bonds, S&P 500 index funds can be a great investment option. S&P 500 Index funds are based on about five hundred of the largest American companies. They comprise many of the most successful companies in the world. For example, Amazon and Berkshire Hathaway are two of the most prominent member companies in the index.


Like nearly any fund, an S&P 500 index fund offers immediate diversification, allowing you to own a piece of all of those companies. The fund includes companies from every industry, making it more resilient than many investments. 

  • Robo-advisor Portfolio


Robo-advisors are another alternative if you are not willing to do much investing yourself and prefer handing the process to an experienced professional. Here, you simply have to deposit money into the robo account, and it automatically invests it based on your goals, time horizon and risk tolerance. 


You will have to fill out some questionnaires when you start so the robo-advisor understands what you need from the service, and then it manages the whole process. The robo-advisor will select funds, typically low-cost ETFs, and build you a portfolio.

  • Roth IRA


Lastly, Roth IRAs are also one of the best investment options for salaried persons. A Roth IRA might be the single best retirement account around. It lets you save with after-tax money, grow your money tax-free for decades and then withdraw it tax-free. 


A Roth IRA is not an investment exactly, but rather a wrapper around your account that gives it special tax and legal advantages. So if you have your account at one of the best brokerages for Roth IRAs, you can invest in almost anything that fits your needs.


This concludes our list of the best investment options for salaried persons. Long-term investments give you the opportunity to earn more than you can from short-term investments. However, you have to take a long-term perspective, and not be scared out of the market because the investment has fallen or because you want to sell for a quick profit.