What is the Best Investment for Newbie?

[Mika]

If you want to invest, there are multiple options, such as

Fixed deposit Bank Account

Government Bonds

Corporate Bonds

Gold

Stocks

Mutual Funds

Equity

Real Estate

Cryptocurrency, etc.

For a newbie, this can be overwhelming. Here is a simple guide to finding out what is best for you.

If you have a substantial amount of money and do not want to take a huge risk, put your money in fixed deposit bank accounts or government bonds. However, make sure you get at least a 10 percent return on your investment.

If you do not have a lot of money to start investing and want to start investing with a small amount, try the stock market as you can start with comparatively small funds.

If you have already built some investment portfolio, if you have a regular income that not only pays your bills but also get you surplus money, invest in real estate. If you do not have entire funds to buy the property, you can get a loan, provided you have income to pay back.

 

[saoussen5765]

Stocks, Mutual Funds and Equity and Real Estate aren't for newbies but experts.

 

[Shaf]

One of things most people do not consider that makes them to lose money as new investors, is not having knowledge about what they want or need.

It's a general perception that what you need is a large sum of money, but without the know-how, you can blow your entire portfolio. This knowledge can be gotten by self education especially in this internet era through blogs, YouTube or by consulting a financial adviser especially when you are dealing with large sums of money.

One thing to know is your risk appetite. Cryptocurrency can be one of the most luxurious investments but so many get liquidated while safer bets like mutual funds have lower returns but slow return.

If you can afford to lose the money without suffering anxiety, you may want to consider something that pays more with more risk. Some people like pensioners may choose to be more careful with their funds, thus choose investment types like stocks, shares or fixed deposit accounts.

 

[Jasmine]

The answer to the question "what is the best investment for a newbie" depends on number of factors such as amount the person has for investment, source of funds for investment, risk tolerance level, knowledge on the market, etc. If the person does not have a lot of money, he cannot start investing in the real estate. However, he can start investing in the stock market or crypto market even with small funds. If the person does not have high risk tolerance fixed deposit bank accounts, or buying corporate bonds and governments are three best options. If the source of your investment funds is loan, you should never invest in risky markets like stocks or crypto, investing in real estate, mutual funds or even bonds are comparatively less risky. With mutual funds and bonds, you even receive guaranteed return, which can be higher that the interest you are supposed to pay on your loan