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Let’s say you are considering starting to invest some of your money for the very first time. Quite naturally, you will probably find yourself to be a little apprehensive about it, perhaps even downright anxious. After all, you don’t want to lose your money, and it can seem like such a minefield that you might not trust yourself not to mess it up.
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Which Investments Are Best For Newbies?
In truth, most of us can easily invest our money without causing any difficulties, but it’s best to start with some of the simpler, easier options. So what types of investment might those be?
Stocks & Shares
This is the most common type of investment that newcomers will go for, and with good reason. Even if you have never traded in stocks and shares before, you probably know someone who has, and you probably also have a certain understanding of what stocks and shares are already, and maybe even how they work. The major difficulty is in choosing the right shares, but you can mitigate that trouble by using a Robo investor or simply doing some deep research. All in all, this is a pretty easy type of investment to try your hand at.
Bonds
The main benefit of bonds is that they are one of the safest types of investment out there. With bonds, you have the option to go for a very low default risk by applying for governmental bonds. With these, you are always going to be paid back at least what you put in if not the extra interest payments too. You can also go private, where the risks are slightly higher, but the payouts are often more handsome. All in all, it’s a very simple and straightforward process and one that you can easily work out regardless of your level of investment experience.
Commodities
There are certain commodities which are normally regarded as particularly safe, and these are what we are talking about here. A good example is gold. The global economy is still run by gold standards, so the value of gold is always going to be at a pretty high level, regardless of anything else that might happen. It is a much less volatile market, in other words, so you are probably going to make money over time if you invest in gold. You can start by just purchasing small gold bars and adding them to your collection over time.
Real Estate
Finally, a word on real estate, one of the most popular investments of all and another one that is easy to understand for the beginner. Of course, you’ll need a fair amount of money to get started with real estate investments, but as long as you are prepared to wait until you have that, this is something that you might be able to make a lot of use of. Real estate markets generally tend to increase over time, even though there can also be dips, so it’s one to consider if you have a relatively low-risk appetite.
