Do you consider yourself to be an utter beginner in investment? If so, do not worry, there are a plenty of options available for you to start your first step.
Investing was considerably a luxury that only a rich could afford. However, everything changes as now such institutions attempt to reach wider markets by making investment available for anyone.
Considering the vast availability, there are myriad choices a person can pick to invest their wealth in. However, not all of the available choices are newbie-friendly for certain reasons.
That said, there are still a wide range of choices a beginner investor can pick. Of those, we pick three best options that you might consider investing in.
Also Read: Stock Investment Tips for Beginner
The very first objective of investment is to make your money works for you so that you can enjoy its benefits in your retirement life. For that reason, investing for your retirement automatically becomes our first suggestion.
Another reason for the suggestion is that it guarantees returns for your investment with little to absolutely no risk. Most importantly, you can start with as little as 1% of your paycheck.
If you want to conduct an investment but you have limited knowledge about it, index funds might be one among your best bets. Rather than using the service of a manager to take care of your account, index funds track a market index.
By tracking a market index, this type of investment mostly requires low expense ration. Additionally, it works by tracking stocks in a market index, which consists of largest companies in a certain country.
Exchange Traded Funds (ETFs) are comparably similar to index funds in which both allow diversification and strong long-term returns. Similar to index funds, ETFs are also low cost.
Moreover, ETFs require a minimum amount of investment and are more efficient in terms of taxes. In ETFs, you basically sell your stocks to another investor to buy.