Sometimes we find it hard to invest our money on safe and favorable opportunities. There are several ways an individual can invest his money. Some factors are always to be considered; time, amount & rate. The following instruments are most common among folks.
Savings account
It is safe and secured and you can make withdrawal upon your need. With a savings account, you can make money investing a low amount of money. Interest is paid a certain amount of times a year, which basically varies bank to bank.
Certificate of deposits
Basically DPS & FDRs are a good option to invest your money. A higher rate than saving accounts but one can make withdrawal upon prior notice.
Stocks
Stocks or shares of company are exchanged in stock exchange markets. These are a bit risky but if one had good knowledge, profits can be made properly. To gain more you surely have to take some risks. With a proper study on stock exchange ins and outs, anyone can invest their money.
Bonds
Bonds are usually issued by the government or a company. It is basically a debt certificate. It has a specific amount and a specific rate. You will get interest at a regular period of time. Government bonds are unarguably considered as the safest bonds of all. You can invest without further hesitation.
Mutual Funds
A mutual fund is generally a professionally managed pool of money from a group of investors. A mutual fund manager invests your funds in securities, including stocks and bonds, money market instruments or some combination of these, based upon the fund’s investment objectives. By investing in a mutual fund you can diversify, thereby, sharply reducing your risk. Most mutual funds charge fees. You often pay income tax on your profits.
Annuities
Annuities are contracts sold by an insurance company designed to provide payments to the holder at specified intervals, usually after retirement. Example: pension.
