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Investment guide for beginners
No one knows when bad luck hits and we get pressurized by all the weight of your financial problems. Apart from being hit by bad circumstances one may also need some investment for his future.
We all know that in this uncertain world, we have to think about the future of our kids who are growing up way faster than our imagination. And certainly they will start demanding for different essentials every now and then. Their educational expenses are going to be super high.
However, if we don’t prepare our self today then we won’t be able to make a bright future for our generation. So if you have already made a mind that you want to do something for them and start saving from today, then go ahead and give a read to some of the best investment ideas.
Some of the most common and legit investment options discussed in Investment guide for beginners are:
1. Real estate
2. Stock exchange
3. Prize bond/certificates
4. Bank savings
5. Mutual fund
6. Cryptocurrency
Depending on the amount you have for investment, how much time you have and how much risk tolerance you can afford, you can opt the best option for investment.
Some of the options discussed here have high risk which rewards in high profit as well. But remember, high risk investments are always for long term. We do not suggest high risk investment for short term like a year or two.
Some plans have low risks but the profit is overnight. We get low profit but immediate profit. It all depends on your choice whether you want to take risk or not.
Real Estate
Now a day’s most people are keen to invest in real estate. Their strategy is that they buy property in an undeveloped area where fewer facilities (Schools, Hospitals, Factories, utlities) are available and the cost of property is quite low. With the passage of time the prizes begin to rise as development of that area starts.
Usually people spend in buying properties in societies where all the facilities are provided inside the society or promised to be provided with the passage of time and development in that area. People with well-off backgrounds tend to live in those clean and green societies and are willing to pay any price.
Stock exchange
Stock exchange is a market of shares where a lot of companies make their shares available for selling. Each share has its own cost. For example If a company has shares available and you buy 100 shares of worth prize $10 each (Total investment=$1000). Now if company is getting profit, the price of its share will increase. For example if the price of each share increases from $10 to $12 each, then your total amount of the shares will also increase (12*100=1200). and you will get a profit of $200.
However, if the company in loss and the price of its shares may get low. In that case you will also have to bear that loss. So this type of Investment is good for people who are willing to take a chance and have courage to bear loss. These investments are suggested for long term investment. If you are someone who is already in crisis and does not afford to bear loss then we do not suggest you to go for stocks.
Prize Bond/Certificates
Prize bonds are more or less similar to lottery tickets. You buy a prize bond with certain code and wait for the announcement of winners. Winners may get bonus of worth millions of money. A plus point here is that whenever you need money and want to sell your prize bond you can sell it at the same price you bought.
This investment method is best for people who want to invest for short term and may need their money back any time.
Bank Savings
Now a days Bank savings are not merely used for investment but it may also be used just for securely depositing your money. People are afraid of thieves so they prefer to keep their money in banks. They can also earn profit from this money if they properly investigate which type of account they need and then get annual benefit.
We suggest saving accounts where one get profit by keeping the money in account for a specified period of time.
Mutual Funds
Mutual funds is a form of investment in which authorities gather money from different people and those people now become their shareholders. Now it is duty of the authorities that they do research on which companies are going in profit and invest for you in various companies.
In this way the risk factor is lowered. If one company goes in loss then you can get profit from other so your money is not invested at one place. It is invested in various companies and then net profit is calculated and you get mutual profit as per your share.
Cryptocurrency
A cryptocurrency, crypto-currency, or crypto is a digital currency. It has been designed to work as a medium of exchange through a virtual computer network which is not contingent on any central authority, such as a government or bank, to uphold or maintain the currency.
People usually ask if it is a good medium of investment. However, Cryptocurrency may be good investment mode or maybe not a good mode. One can invest if he is willing to accept that it is a high risk gamble which could pay off. But also, there is a strong chance that you can also lose all of your money. It is important before investing in bitcoin or other cryptocurrencies that you dig in all the relevant information.
But, we do not SUGGEST this mode of investment. We do not consider it legit and authentic mode of investment.
Investment guide for beginners
These are some types of investment one can select from. We suggest to make thorough study before investing in order to make your hard earned money secured.
for more finance related articles are here > Finance
If you are interested in investing in global market then read A Beginner’s Guide To Investing Globally too.