5 Investment Ideas for Beginners

If you’re a millennial, the first time you ever heard the term investment was probably in the sentence about them being “market risk”. So, your initial impression would probably have been that these can be lethal, which explains the need for the line. But here is the thing about risk though, you can mitigate it. 

In this space, we will discuss few simple, effective, and kind of obvious high return investment ideas for absolute beginners who are about to venture on their investing journey for the first time. Or people who recently went bankrupt and are looking to start over, you probably need this too. Just kidding, you probably don’t have any to invest. But you can keep these interesting ideas for future use. And, here it goes.

5 Investment Ideas for Absolute Beginners: Are You the One?

Had this been a PowerPoint presentation, the title would have flashed across alongside fireworks and stuff, so if you’d be kind enough to imagine that. But we’ll be discussing this in a plain language. Through these simple yet crucial investment tips, you will gain a lot.

1.The Piggybank Idea

If this made you cringe, you probably have not seen Darth Vader’s helmet style piggybanks. It lights up and everything. Talk about cool kid stuff, huh?

This method, however, periodically setting aside a particular amount and letting it accumulate is the basis of all investment strategies on Earth, give or take. This one’s for you if you are a newbie and are smart enough to realize that you don’t have the smarts to be operating in the markets. 

And, by the time you pick enough skills to invest, you have a tangible representation of what investment looks like, and you are habitual to investments affecting your cash flows, a first step many, many novice investors miss, rather aggressively.

2.Mutual Fund SIP

Mutual funds are public pools of funds that are further invested in the markets by experts. A Systematic Investment Plan is a sort of an EMI, but for your investments, and in return, you get more money. So that’s nice. 

What’s more, this works on a strategy called Dollar Cost Averaging, so while you keep investing the same amount, the number of units you get is different, making the entire prospect much more profitable in the long run. You not only get returns that the fund’s manager earns for you, but you also get a hefty return from the price fluctuations of the fund itself.

3.Bond Markets

Bonds are debt instruments that provide a coupon payment and have a stipulated period of redemption. In India, you can trade bonds on NSE. The thing is, in terms of price fluctuations, bond markets are less volatile, and if you’re learning finance, calculations of these fluctuations are probably one of the first few things you will be learning.

4.Coffee Can Investing

While this and the point below both discuss stock markets, I would like to highlight this particular strategy because of two reasons. First, it is the practice of long-term investing in large-cap companies that makes sense because these companies are market leaders. 

Secondly, the chances are that at this point, you have enough years ahead of you before you need financial stability, and it’ll perfectly fit with the return investment horizon of this strategy.

5.Stock Markets

Stock markets, in terms of risk and return, accounting for time you spend is just not worth it. That is unless you’re a finance professional. However, if you think this is something you want to do, make sure you don’t have to depend on the results of those, at least in the beginning. 

Also, brush up your financial basics and keep note of the basic things you might need to know before investing in stock markets.

The Bottom Line

Quick notes, it’s never too late to start investing, and no amount is too small. Simply Start!! Keep learning and adding to your investment knowledge.

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