What Is Investing
In simple words the goal of taking benefit / return or income that you expect in future by putting liquidity in any resources is called investing, a useful example for investing is to buying assets like real estate which increases in values over time.
Types of Investments
There are some classes in wghich most of people invest their money.
1. Stocks – People buy stocks which pay dividends and companies sell stock for its growth.
2. Bonds – if you invest in bonds that are actually loaning money for specific period of time, the issuer such as (governments, municipalities and companies) will pay you return at fixed rate.
3. Mutual Funds - Funds are instruments controlled or managed by high level investment managers who invest liquidity of investors in bonds , stocks, commodities ,private equity to diversify risk and make return.
4. Real Estate – Real Estate also known as one of the lowest risk investments With high return but it take time.
5. Commodities – In Commodities you can buy or sell financial instruments such as currencies or metals, oil, grain, cotton, wheat and animal products as well etc...
How to Invest
There are many points you should consider before investing in any field, here some tips and key point that you must know.
1. Risk Management and Diversification.
2. Choose A Financial Advisor.
3. If you’re a beginner the easy diversification are mutual funds and ETFs which are less risky.
4. Start Investing as Early as possible and Keep Regular Investing.