The investment landscape in 2025 offers exciting opportunities for smart investors. High-yield savings accounts, CDs, bonds, funds and stocks are all considered among the best investments available. Market conditions have created unique opportunities across multiple sectors.

Best Investments for 2025

Here are the seven best investments that are delivering strong returns in 2025.

Artificial Intelligence (AI) Technology Stocks

In 2025, AI stocks continue to be the hottest investment sector. Nearly all, 97% of senior business leaders of organizations investing in AI report that their organization is seeing positive ROI from their AI investments.

The biggest AI investment opportunities are from:

Top AI Stocks:

• Nvidia controls the AI chip manufacturing market
• Microsoft has AI outreach across its entire platform
• Alphabet (Google) is the leader in AI research and applications
• Amazon has AI integrated into its cloud services

Why AI Stocks Work: Companies using AI technology are seeing immediate revenue growth. The demand for AI infrastructure continues to outpace supply.

Risk Level: Moderate to high Expected Returns: 15-25% annually’

Energy Infrastructure and Pipeline Stocks

Energy infrastructure has proven to be a shockingly good bet in 2025. Energy Transfer and Enterprise Products Partners both ideally positioned to benefit from rising AI electricity use given their facilities in Texas.

Good Energy Investments:

• Energy Transfer Partners (ET)
• Enterprise Products Partners (EPD)
• Williams Companies (WMB)
• Kinder Morgan

Why Energy Infrastructure Works: AI data centers consume vast amounts of electricity. Energy companies servicing those tech hubs are seeing historic demand for power.

Risk Profile: Low to moderate. Expected Returns: 8-12% per year, in addition to dividends.

Small-Cap Stock Funds

Small-cap funds have an excellent opportunity for growth in 2025. Small-cap stock funds can deliver strong returns over time, and the best small-cap ETFs can deliver double-digit returns per year for several years.

Best Small-Cap Options:

• Vanguard Small-Cap ETF (VB)
• iShares Russell 2000 ETF (IWM)
• SPDR S&P 600 Small Cap ETF (SLY)

Why Small-Caps Work: Interest rates have stabilized. Small companies have greater access to more favorable capital options for their future growth.

Risk level: Moderate to high Expected returns: 12-18% average annual return.

Data Center REITs

Data Center focused Real Estate Investment Trusts are doing very well today. AI boom is driving huge demand for data center space.

Top Data Center REITs:

• Digital Realty Trust (DLR)
• Equinix (EQIX)
• American Tower Corporation (AMT)

Why Data Center REITs are good: Every AI application has to have physical server space. Data centers make the digital economy run.

Risk Profile: Low – Moderate Expected Returns: 6-10% annually + dividends

High-Yield Savings Accounts and CDs

Conservative investors are receiving solid returns from high-yield savings and CDs.

Best high-yield options:

• Online banks – 4.5-5.5% APY
• 12-month CDs – 4.8-5.2% APY
• Money market accounts – 4.2-4.8% APY

Why do high-yield savings work? Zero risk with guaranteed returns. Ideal for emergency/short-term goals.

Risk level: Zero risk Expected returns: 4.5-5.5% annually

Green Energy and Battery Storage Stocks

Several capital flows are moving into the renewable energy sector. Traditional and renewable energy, nuclear, and battery storage will see relatively significant capital flows in our view.

Top Green Energy Investments:

• Tesla (battery technology)
• NextEra Energy (renewable infrastructure)
• Enphase Energy (solar systems)
• First Solar (solar manufacturing)

Why Green Energy Works: Government incentives are legislated for renewable energy and Corporations have ESG goals that require them to commit to clean energy solutions.

Risk Level: Moderate Expected Returns: 10 -15% per annum.

Diversified Bond Funds

Bond funds offer stability and income in volatile markets.

Best bond funds:

• Corporate bond ETFs
• TIPS – Treasury Inflation-Protected Securities
• High-grade municipal bond funds
• International bond funds

Why do bond funds work? They provide a good hedging effect to portfolio risk. Current yields are attractive compared to the past several years.

Risk level: low Expected returns: 4-7% annually.

Key Investment Tips for 2025

Start Small: If you are a novice at investing, index funds are the best starting point. Build as much knowledge as you can before selecting individual stocks.

Dollar-Cost Average: Invest the same amount every month. This will mitigate the impact of market fluctuations.

Rebalance Quarterly: Check your portfolio every three months. Sell your winners and add to the losers to adjust back to your target allocations.

Stay Informed: Follow the earnings reports of the companies you have invested in. Read reputable financial news.

Think Long-Term: The desired investments in 2025 could take years to play out. Be patient.

Final Thoughts

The best investment 2025 will be shaped by technology and evolving energy demands. Artificial Intelligence stocks lead the way for growth potential, while energy infrastructure stocks provide income and stability.

Investing successfully requires investors to match their risk tolerance with the investments that best suit them. Investors with a conservative market outlook should invest in high-yield savings accounts and in bond funds. Investors with a growth perspective may consider investing in AI stocks and small-cap funds.

The key to successful investing is getting started today, and being consistent with that investment strategy. Market time vs. time in the market is less important.

All investments carry risk. Before making any significant investing decisions, speak to a personal financial advisor to mitigate those risks. Past performance does not guarantee future returns.