The common adage “Anybody can earn money, savings and investments are what count” propels many to consider shares and bonds as a means of resourcing their hard-earned cash. Here are 3 basic ways to invest money.
- Individual stocks or in selected companies and organizations
- Mutual Funds, Exchange traded funds, Hedge funds
- Portfolios of Stocks
Ask any dedicated and determined stock market player how he plans to make his millions, and he shall answer it is only through individual careful selection of shares that one can churn cash in a short span of time. Among the ways to invest money, individual shares hold the maximum returns as well as the maximum risks. Since these are short-term investments based on the personal judgment of investors, there is no surety of returns let alone high profits. A person who goes into individual stocks should read the company’s financial records, performance statistics and the future plans well enough before putting up their hared earned cash since if the plan backfires it is often going to result in heavy losses. However, this is the easiest means of earning high in stocks.
Many investment companies and institutional investors, who have already put in millions into a carefully selected portfolio of stocks, give out Mutual Funds and other such collection of stocks and shares. These are a safer choice and in the end do give good interest returns. For people short in time and wanting to play safe, they are a great means of investment.
Having a portfolio of your own, is by far the lowest risk, profitable ways to invest money. It is an amalgamation of the first two methods where one invests in individual stocks because of their potential to earn and also offsets its potential losses against investments in mutual funds and other such investments.
