Investing for the long run requires a strategic approach that balances risk, return, and market stability. While traditional investment options like stocks, bonds, and real estate have long been considered safe bets, emerging financial instruments — such as carbon credit funds — are gaining traction for their high returns and sustainability-driven growth.
This article ranks the top 10 long-term investments, analyzing each based on annual return, 10-year value, market growth, risk, liquidity, tax benefits, and overall stability. Starting from number ten, we work our way to the top-ranked investment option for the next decade.
#10: U.S. treasury bonds
- Annual return: 3-5% — based on the current 10-year Treasury Bond yield
- Initial investment: $100,000
- 10-year value: $134,392 - $162,889. Slow but steady appreciation
- Market growth: Low — treasury bonds grow at a fixed, slow rate tied to U.S. government yields
- Market stability: High
- Risk level: Low
- Risk diversification: Concentrated in U.S. debt instruments, tied to inflation and interest rate fluctuations
- Liquidity: High
- Tax incentives: Exempt from state and local taxes
- Volatility: Very low — virtually no volatility due to guaranteed government backing
- Transparency: High
- Market maturity: Fully developed
U.S. Treasury Bonds are among the safest investments, offering government-backed security and steady, predictable returns. However, they lack significant growth potential, making them less attractive to high-return investors. While treasury bonds serve as a good option for capital preservation, they often fail to outpace inflation, limiting wealth accumulation over time.
Carbon credit funds vs. U.S. treasury bonds
#9: Corporate bonds
People working in a large corporate office. AI generated picture.
- Annual return: 5-8% — varies by bond rating and issuer
- Initial investment: $100,000
- 10-year value: $165,889 - $215,892. Moderate growth which varies by bond rating and issuer
- Market growth: Stable — projected to grow steadily, tied to corporate debt issuances.
- Market stability: High for investment-grade, moderate for lower-rated bonds
- Risk level: Low to moderate
- Risk diversification: Concentrated in corporate debt instruments; depends on company performance and credit rating
- Liquidity: Moderate
- Tax incentives: Some tax advantages on municipal bonds
- Volatility: Moderate — influenced by the company’s financial health, interest rates, and economic cycles
- Transparency: High
- Market maturity: Well-established
Corporate bonds offer higher returns than treasury bonds while maintaining low-to-moderate risk levels. Investment-grade bonds from strong corporations provide stable income, but returns remain lower than stocks or alternative assets. High-yield (junk) bonds carry significant risks, making them unsuitable for conservative investors.
Carbon credit funds vs. corporate bonds
#8: Retirement funds (401k, IRAs, pension funds)
Retirement funds enters in the Top 8 of our list because of its high stability. AI generated picture.
- Annual return: 6-8% — historical average for 401(k)/IRA tied to S&P 500 performance
- Initial investment: $100,000
- 10-year value: $179,085 - $215,892. Strong, compounding benefits
- Market growth: Steady — tied to overall stock market growth, expected at 6-8% CAGR for the U.S. retirement savings market
- Market stability: Moderate to high
- Risk level: Moderate — subject to stock market fluctuations and economic downturns
- Liquidity: Low — locked until age 59½, with penalties for early withdrawals
- Tax incentives: Tax-deferred growth, employer-matching benefits
- Volatility: Moderate
- Transparency: High
- Market maturity: Fully developed
Retirement funds are a long-term wealth-building tool, providing tax advantages and employer contributions. However, limited liquidity and dependency on market cycles make them less flexible compared to other investments. While they are a solid option for passive investors, they lack diversification beyond traditional asset classes.
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Additionally, the timing is not favorable for these investments. Trump's proposal to eliminate income taxes on Social Security benefits could impact retirement funds, creating uncertainty. The government may seek alternative revenue sources, potentially leading to changes in tax policies or retirement fund regulations that could affect long-term investment strategies.
Carbon credit funds vs. retirement funds
#7: Mutual funds
- Annual return: 6-8% — based on historical S&P 500 performance
- Initial investment: $100,000
- 10-year value: $179,085 - $215,892. Consistent growth, but tied to market trends
- Market growth: Expected slow growth as the mutual fund market is already mature
- Market stability: Moderate to high
- Risk level: Moderate
- Risk diversification: Limited to stocks and bonds, leaving portfolios vulnerable to market downturns
- Liquidity: High
- Tax incentives: Standard tax treatment — varies by account type (e.g., Roth IRA)
- Volatility: Moderate to high volatility based on market cycles
- Transparency: High
- Market maturity: Strong, widely adopted
Mutual funds offer diversification across asset classes, making them an accessible investment choice. However, they come with management fees, and their performance is limited to fund managers' decisions. While mutual funds provide moderate risk exposure, they do not offer the higher return potential of emerging asset classes.
Carbon credit funds vs. mutual funds
#6: Real Estate Investment Trusts (REITs)
Real Estate has always been a safe choice for investors. AI generated picture.
- Annual return: 8-10% — based on historical average returns for U.S. REITs
- Initial investment: $100,000
- 10-year value: $215,892 - $259,374 — High, but dependent on market cycles
- Market growth: Moderate
- Market stability: High for established REITs — dependent on real estate trends, economic conditions, and interest rates
- Risk level: Moderate
- Risk diversification: Primarily focused on real estate (residential, commercial, or industrial properties)
- Liquidity: High — for publicly traded REITs
- Tax incentives: Tax-efficient structure but no specific incentives
- Volatility: High sensitivity to economic cycles and interest rate changes
- Transparency: High
- Market maturity: Mature market — offering steady but slower returns
Discover more: Real estate vs. nature investment: why nature holds the edge
REITs provide real estate exposure without direct ownership, making them an accessible option for passive investors. However, they are subject to market downturns and higher taxation on dividends, reducing net returns. While stability is relatively high, they offer limited upside compared to high-growth investments.
#5: Hedge funds
- Annual Return: 10-12% — historical average for well-performing hedge funds
- Initial investment: $100,000 — with high minimum investment thresholds
- 10-year value: $259,374 - $310,584 — High, but with significant risk exposure and a 20% performance fee
- Market growth: High — Hedge funds are projected to grow at a slow rate, driven by ultra-high-net-worth demand
- Market stability: Low to moderate
- Risk level: High
- Risk diversification: Strategies vary widely — can include high-risk speculative investments, derivatives, or leveraged positions
- Liquidity: Low — lock-in periods apply
- Tax incentives: Some tax-efficient structures
- Volatility: Moderate to high — depending on hedge fund strategy (e.g., market-neutral, macro, or long-short equity)
- Transparency: Low — complex strategies and opaque reporting practices can obscure performance clarity
- Market maturity: Well-established
Hedge funds are actively managed investment pools that aim for higher-than-average market returns by leveraging strategies such as short selling, derivatives, and leverage.
Hedge funds have the potential to deliver strong double-digit returns in a bull market. A well-managed hedge fund can significantly outperform traditional markets, providing greater portfolio diversification and downside protection during economic downturns.
These funds are often reserved for institutional investors and high-net-worth individuals due to their complex structures, high fees, risk, and lack of transparency, making them less attractive for long-term stability seekers.
Carbon credit funds vs. hedge funds
#4: Venture capital
- Annual return: 20-30% — but high variance and higher risk of failure
- Initial investment: Typically $250,000+ (higher entry barrier)
- 10-year value: Extremely high if successful (may yield $1M+), but many result in a loss of the full investment
- Market growth: The Venture Capital market is expected to grow at a CAGR of 11.5%, driven by tech and innovation
- Market stability: Low
- Risk level: Very high — 85% of startups fail, making VC investments highly speculative
- Risk diversification: Concentrated in startups, with limited diversification unless investing in multiple funds or sectors
- Liquidity: Very low — typically locked for 7-10 years until an exit event (IPO, acquisition)
- Tax incentives: Limited to general capital gains tax benefits
- Volatility: High
- Transparency: Low — VC firms often operate under NDAs and disclose limited details about portfolio companies
- Market maturity: Risk-heavy
Venture capital involves investing in early-stage startups with high growth potential. Investors gain equity in exchange for providing funding, with the hope that the startup will become highly profitable or go public (IPO).
A successful VC investment can yield massive returns, sometimes 10–100x the initial capital. Many of today’s largest companies, such as Amazon, Tesla, and Airbnb, started as VC-backed startups.
The truth is, that venture capital comes with many downsides, including no guaranteed returns, a high failure rate — since most startups fail before turning a profit — and low liquidity, as investors often wait a decade to see returns.
While venture capital offers some of the highest potential returns, its massive risks make it suitable only for experienced investors who can afford long-term commitments.
Carbon credit funds vs. venture capital
#3: Stock market (S&P 500, individual stocks)
- Annual return: 7-10% — historical S&P 500 performance
- Initial investment: $100,000
- 10-year value: $196,715 - $259,374 — Strong growth with compound interest
- Market growth: U.S. stock market growth is steady, tied to GDP growth and corporate earnings
- Market stability: Moderate
- Risk level: Moderate to high — stocks are prone to sharp market corrections and economic downturns
- Risk diversification: Limited to individual stocks or ETFs, with sector-specific and geographic concentration risks
- Liquidity: High
- Tax incentives: Capital gains tax benefits
- Volatility: High — driven by market sentiment, economic cycles, and geopolitical factors
- Transparency: High
- Market maturity: Fully developed
The stock market has historically delivered consistent long-term returns, making it a key component of wealth-building strategies. Investing in blue-chip stocks or index funds like the S&P 500 can provide stable growth while selecting individual stocks offers the potential for even higher returns.
However, the stock market comes with inherent risks. It is highly sensitive to economic downturns, making it vulnerable to market crashes. Prices fluctuate daily, leading to high volatility that can cause investor panic. Additionally, selecting individual stocks increases exposure to company-specific failures, making diversification essential.
Despite these risks, the stock market remains a strong long-term investment. Success requires risk tolerance, patience, and a well-diversified portfolio to navigate downturns and maximize returns.
Carbon credit funds vs. U.S. stocks
#2: Private equity & alternative assets
- Annual Return: 15-20%
- Initial investment: $100,000
- 10-year value: $404,555 - $619,173. High for top-performing funds
- Market growth: Expanding — driven by institutional investments
- Market stability: Moderate
- Risk level: High
- Risk diversification:
- Liquidity: Low — Long lock-up periods apply
- Tax incentives: Available for institutional investors
- Volatility: Moderate
- Transparency: Low
- Market maturity: Growing
Private equity involves investing in privately held small, medium, and large companies rather than publicly traded stocks with the aim of making them bigger, stronger, and more profitable. This investment approach includes buyouts, leveraged acquisitions, and alternative asset classes such as infrastructure and commodities. By focusing on transforming struggling businesses into profitable enterprises, private equity firms often achieve double-digit annual returns over time.
However, private equity comes with significant risks. High capital requirements make it difficult for smaller investors to participate, while illiquidity means funds are often locked for 5–10 years before generating returns. Additionally, business performance heavily influences outcomes, adding an operational risk factor that can impact profitability.
While private equity offers strong returns, its accessibility challenges, long lock-up periods, and risk exposure make it best suited for institutional and high-net-worth investors who can commit to long-term capital allocation.
#1: Carbon credit funds
Carbon credit funds help to preserve nature with large-scale nature-based projects. AI generated picture.
- Annual Return: 15-22% — driven by increasing carbon prices and regulatory demand
- Initial investment: $100,000
- 10-year value: $404,555 - $730,464
- Market growth: The carbon credit market is projected to grow at a CAGR of 32.1%, reaching $136.32 billion
- Risk level: Low — backed by global regulatory demand and diversified across multiple projects.
- Risk diversification: Investments spread across reforestation, renewable energy, and sustainable projects globally
- Market stability: High
- Tax incentives: Available for ESG investments and may qualify for green tax credits
- Regulatory support: Backed by global climate policies (e.g., Paris Accord, California Cap-and-Trade, EU ETS)
- Transparency: High — investors can track specific projects and their environmental contributions
- Liquidity: Medium — investment horizon of 7–12 years, with potential for earlier exits based on carbon credit trading
- Volatility: Low — due to regulatory demand and sustained carbon offset needs
- Market maturity: Early-stage market with exponential growth potential
- Environmental impact: Offsets 1,000+ tonnes of CO₂ per $100,000 invested, contributing to global sustainability goals
Carbon credit funds are emerging as one of the most attractive long-term investments. With the global push for net-zero emissions and thousands of companies investing in sustainable solutions to address their emissions, carbon credits are becoming one of the fastest-growing commodities, with market projections exceeding $1 trillion by 2037.
Discover more: The rise of carbon markets: A new frontier in sustainable investing
Carbon credits are expected to see significant price increases, with values rising from $25 per metric tonne today to $50–$150 per tonne within the next decade. Experts predict that long-term investors could experience substantial capital appreciation as global carbon pricing continues to rise.
While the carbon market offers strong growth potential, it is still evolving. Regulatory developments can influence pricing, and as awareness increases, more investors are discovering the opportunities within carbon trading. Additionally, project selection is critical, as investing in high-quality carbon initiatives ensures both financial stability and verifiable environmental impact.
With strong returns, rising demand, and tangible sustainability impact, carbon credit funds outperform most traditional investments in growth potential, risk mitigation, and long-term value. This makes them an exceptional choice for forward-thinking investors and therefore ranking first under our list of top 10 long-term investments.
Comparison of top 10 long-term investments
When it comes to long-term investments, each option has its own advantages. Some are ideal for stability and steady returns, while others offer high growth potential for those willing to take risks or backed by strong investment groups. The key to a successful portfolio is balance — diversifying across different asset classes ensures resilience against market fluctuations.
Below, we present a comparison of the top 10 long-term investments based on a $100,000 investment, allowing you to evaluate their strengths, find the right fit for your financial goals, and compare these investments with the benefits of investing in carbon credit funds.
For illustrative purposes only, the returns shown are based on a general market comparison across asset classes using a 10-year investment horizon and compounded annual return rates. These figures do not represent or guarantee the actual returns of the Green Carbon Fund, which operates with different terms, conditions, and investment timelines.
Among all the investment options, carbon credit funds stand out as one of the most promising choices today. Unlike more mature markets that may see slower growth, the carbon credit market is still expanding rapidly, driven by increasing global demand and regulatory support. With a strong upward trajectory and a scarcity of high-quality credits, this sector offers greater potential for long-term financial gains compared to traditional investments.
Choosing the most efficient carbon credit fund
Unlike traditional asset classes such as stocks, bonds, and real estate, which are reaching mature market stages with slower growth, the carbon credit market is still in its expansion phase. With demand expected to outpace supply, carbon prices are set to rise significantly in the coming years, making now the ideal time to invest.
Selecting the right carbon credit fund is crucial for maximizing returns while minimizing risks. VanderStyn’s Green Carbon Fund offers an exclusive opportunity to invest in this high-growth sector — featuring a diversified portfolio that eliminates many of the uncertainties associated with individual carbon projects or other long-term investment options.
By investing in high-quality, verified carbon projects, the fund reduces project selection risk while delivering strong, stable returns of up to 22.5% annually, along with an 11.25% annual cash flow return paid quarterly over a 7-year investment period. Diversification across multiple locations, project types, and certification standards enhances security and maximizes long-term value. This strategic approach ensures that investors benefit from rising carbon prices and increasing global demand, regardless of market fluctuations in any single project.
The Green Carbon Fund: breaking barriers for individual investors
Historically, carbon credit markets have been dominated by large corporations with the capital and infrastructure to navigate complex trading systems. VanderStyn’s Green Carbon Fund removes these barriers, granting individual accredited investors seamless access to a market previously reserved for industry giants. No need for complex project selection or regulatory navigation — the fund does the work for you, ensuring a smooth and profitable investment experience.
Carbon credit funds offer attractive returns besides a sustainable impact on nature. AI generated picture.
The Green Carbon Fund is your gateway to one of the most promising investment opportunities of the decade. Schedule a meeting with our Fund Manager today to learn how you can achieve strong financial returns while making a meaningful environmental impact.
