It’s a great decision that you made, to start investing. Whether you want to do it for savings, additional income or as retirement goals, the earlier you start, the better. And the good thing about investing for beginners is that you don’t need thousands of dollars to start. You can start even with $500 but getting a good return on investment requires a plan.
1. Stocks investment
If you’re starting small, you can go for individual stocks. There are many companies with share prices as low as $5, and you can thus, diversify your investments. If you don’t know how to start investing in stocks, get going with one of the stock brokerage firms, and also learn in parallel.
2. Mutual Funds
If you have some thousand dollars to spare (read it as invest), you should opt for mutual funds. They get you shares of different companies in a single go. Choose the funds as per your goals and relax. There also are some, which allows you to start with small investments.
3. Bonds investment
For those who are looking for safe investment ways, bonds come handy. It is a loan a company gets from you and gives you interests in return. And when the term of loan completes, you get the invested money back. Bonds, however, provide lesser ROI than stocks and mutual funds.
4. Peer-to-peer lending
Also referred to as social lending, P2P lending is a sort of investment business. Individuals come to you directly to borrow money either to buy a car or build a house. You lend them the money and then receive repayment in monthly instalments along with interests.
5. Real Estate investment
Not everyone can buy an investment property, but if you’re thinking of protected investments, start searching. The real estate sector has always been rewarding, and there are tons of websites which provide buying opportunities and also, tips for buying investment property.
Forex trading is also an option if you’re into making money from your money (literally). You don’t need a huge amount but a sound knowledge of the global economy. And with the right tools, you can make quite a handsome amount with investing in forex.
Unlike the other investment options mentioned above, investment in gold has always been beneficial. While stocks and forex trading always have ups and downs, gold prices still show an upward trend, except for few incidents.
After the rally in Bitcoin prices, investments in various cryptocurrencies are on the rise. Since the theft of cryptocurrency is difficult, it’s one of the safest ways of investment. Cryptocurrency investments are made through peer-to-peer transfers with the help of blockchain and thus, are fast.
Well, those were all the easy investment options for beginners. While some offer a high return on investment, others guarantee a secure investment.
So, which one are you going for – the relative safety of bonds and mutual funds or the adventure ride with stocks and forex?