If you are new to investing, you would definitely want to know how to invest your money. While there are many investment options available, it is financially prudent to select the best – so that even in the worst market scenario, your investment is safe and provides the anticipated returns.
Here are the top ten investment options in the current market scenario:
- Property Investment – Perhaps one of the best investment options in today’s economic situation is property investment. Whether it is a home or commercial property, the value of the property will appreciate each year. Furthermore, owning your home is one of the best investment choices you can make.
- Money Market Account – This account operates just like a savings account, but ensures better returns. It may require the account owner to maintain a minimum balance and may impose restrictions on the number of withdrawals. However, it ensures liquidity of funds.
- Savings Account – While the returns may not be exorbitant, around 2.7 percent, a savings account is a good way to accumulate money over a short time period. The amount will earn a modest interest during that period and it will be available when the need arises.
- Checking Account – A checking account may not be the best of investment opportunities, but it ensures that the money is easily available. The high liquidity aspect makes it a viable investment opportunity. However, a checking account will not help you build a nest egg.
- Certificate of Deposit – A certificate of deposit, also referred to as a CD, involves depositing a certain amount of money into a bank account for a fixed period of time. In lieu of the money, the person gets a certificate using which he can withdraw the money after lapse of the time commitment. People can buy CDs for 6 months, 1 year, 5 years or for an even longer duration. The money earns an interest, which increases as the time commitment increases. The interest rate is quite reasonable and usually is more than the rate of inflation.
- Savings Bond – Similar to a CD, the investor has to deposit money for a fixed time period, which accumulates interest for period of investment. It is a safe way of earning money, just like a certificate of deposit. However, its popularity is often bogged down by its lack of liquidity.
- Municipal Bond – This type of bond is a loan to the municipality for a public project, which can be establishing a new school, doing up the infrastructure of the city or town or setting up a hospital. Even corporations offer similar bonds, which are referred to as corporate bonds. The money used to buy a bond earns a fixed rate of interest and this rate is dependent on the prevailing rates at the time when the bond is issued and how stable the issuing entity is. Typically, municipal bonds earn a higher rate of interest, when compared to savings bonds.
- Stocks – There are some companies known as blue chip companies, such as Disney and IBM, which are very popular among investors. Buying shares of these companies is a good way to spread out your investment and reduce the risk associated with buying shares. Having a portfolio of assorted shares in different types of industries will allow you to earn money when the price of these shares rise and you sell your shares. Furthermore, these shares also pay an annual dividend, which can help build your retirement nest egg. However, before investing in stocks, it is best to consult an expert, who will be able to advice you on which companies to concentrate on.
- Bond Mutual Fund – This refers to a group of low-risk bonds. This type of investment lowers the risk of investing, as the money is spread between the different bonds. The investor earns interest on a monthly basis and the value of the shares is dependent on the interest rate. Basically, if the interest rate is low, the value of the shares is high and vice versa.
- Stock Mutual Fund – This also refers to a group of stocks of different companies. As a stock mutual fund is a large portfolio of stocks, the risk is lowered. This is one of the best investments if a person is looking to save money for retirement and is ready to invest for longer time periods.
If you would like more information about discounted property, visit National Homebuyers Investments now.