Where to invest money to a novice investor.
Where to invest money excites all novice investors. All without exception. And the variety of existing investment options is difficult for beginners to understand.
The most important thing that every investor must do is to learn the main rule of investing: "The higher the percentage of profit, the greater the risk of losing money." Therefore, you should not chase after tools that offer to double capital in a month. This does not happen. Rather, there are some cases of excess profit, but more often than not, such an investment results in a loss of money.
The simplest thing that can be done with the accumulated money is to invest it "under the mattress." Just kidding. This is the simplest, and the most stupid. If you don't invest money anywhere, inflation will destroy them.
You can invest in bank deposits. That's better. But each investor should understand that the interest rate on deposits with banks usually does not significantly exceed inflation. Such an investment will only save money, but not get a good profit.
The next most profitable investment tool is bonds. Here, the yield is slightly higher than in bank deposits with the same liquidity and a guarantee of a refund.
Investing in stocks is an interesting type of investment, but here you will need knowledge on each instrument. But the profitability here is much higher than in the tools listed above.
Investing in PAMM accounts is the most profitable type of investment, but also the most risky. To select a profitable PAMM account, it will take a lot of effort. But then the profit will be cosmic.
But real estate investing is my favorite way of making a profit. Real estate has been, is and will be in price at all times. And since paper money is constantly depreciating due to a constantly working printing press, real estate will always be profitable. But there is one significant drawback of this tool for investing money - a significant amount is needed to purchase houses and apartments.
Thus, I have listed the main (not all) ways where to invest money to a novice investor. But no matter what tool the investor uses, he must always remember and understand that there is a direct correlation between the percentage of profit and risk. The higher the percentage of profit, the higher the risk of losing money.
What am I missing? What methods of investing money do you know? Please write in the comments! Your opinion is very interesting.