12 Best Investment Options for Beginners to Try Out

Your investment journey can be rough, especially if you are a newbie. Nonetheless, investing is a very important aspect of saving and acquiring financial freedom. Investment can bring passive income, and also become the only major source of fund in your retirement era.

Investment is a goal that must be met. It could be long-term or short-term based on your perspective, choice and financial goals. It is important to note that during your investment journey, you will encounter market environments of various kinds. You will also need to learn to navigate their complexities and know that there is never a perfect time to start investing.

Just a quick tip. As beginners in the investment market or community, it is normal that some investments have higher risks than others. Therefore, do not be surprised if after you have invested, you find yourself losing your funds. Your aim is to learn to manage the risks and make the best of the opportunity. It is also important to consider your personal financial security by regulating the amount you invest, think of possible means you can recover and survive if there is any financial loss and so on.

The Following are the 12 Investments that are Ideal for Beginners

1. Savings accounts

High yield savings account, often accessed through online or micro finance banks, it is a very well-known way to boost your overall investment returns. You save your money for a specific period of time; the bank will pay an interest periodically on the capital. Customers may also get access to their funds 24/7 or after set period of time depending on what is agreed by both parties. This is a great option someone who is saving up for something he or she may want to purchase in the future.

2. Small-cap and small businesses stock funds

Small Caps stock funds refers to stocks or shares of small upcoming businesses with potentials. It is ideal as the stocks owned by upcoming businesses may always be affordable. As the businesses and the stocks continue to advance and grow, more profits come in on your capital. Small caps often have strong growth prospects and goals.

3. REIT index funds

REIT is a short form for “real estate investment trust”. It is one sure way to make mouthwatering profits as a beginner in real estate.

REITs investments allow beginners or individuals in general to purchase or acquire offices, apartments, houses, lands and so on, at a lesser price, not even bothering about how to manage the property as their agency will oversee it. With is investment, it is certain that your capital will continue to appreciate with time. This investment option is a good one for retirees.

4. Certificates of deposit (CDs)

Certificates of deposit is another way to invest and make profits with time. They are purchased from federal insured banks at different price rates depending on the country or geographical location.

CDs have a duration to which they mature and can be accessed, however, if customers want to access them immaturely, they will have to pay a fine. Unlike savings accounts where you just have to talk things out and follow procedures to access your funds, CDs are not accessed without charges.

5. Exchange-Traded Fund (ETFs)

Exchange-Traded Fund is a form of investment usually for those who would want to bypass the stress of investing in numerous stock exchange markets. B purchasing just one ETF, the customer is entitled to various stocks as scheduled by both parties. It is ideal for beginners to reduce complexity. It also helps to enhance your investing experience.

6. Mutual funds

Mutual funds as the name implies allows both parties to benefit massively as it is flexible, easy to access, and relatively low risk. This investment, just like ETFs, allow customers to access a basket full of stocks at ones of which, in most cases, they may not be able to build on their own. It is relatively affordable and budget friendly. It helps Investors to save more returns. You can start trading with even low funds.

7. Individual stocks

This refers to simply purchasing stocks in individual, sole or private enterprises. Note that this is a risky investment option, however, it can also be one of the most rewarding investment options. If you may want to involve in this, you may want to closely examine the risk and know if you can go with it.

Ask questions like, is your investment for a long-term or short-term? If it is on a long-term, you will be getting more profit. Also, bear in mind that your funds may not be easily accessible even in cases of emergencies. It is ideal if you keep reserves when investing. Ensure that you have something to fall back on in cases of emergencies and loss.

8. S&P 500 index funds

The S&P 500 index fund investments is an associate with over half a thousand well to do American companies, like Amazon and Berkshire. Here, investors can now get easy access to shares and stocks of these companies. Their processes are daily and flexible, giving beginners a good head start for their investment journey.

9. Nasdaq-100 index funds

The Nasdaq-100 is a good choice for beginners as they are also partners with some of the biggest tech companies. This will keep you at higher advantage in the investment market, as they will expose you to good trade and legit stocks. This investment option generally reduces the risk of financial loss. You also know that tech companies are the most successful nowadays, thereby giving you a big hope.

10. NGX 30 Index ETF:

The NGX 30 Index ETF is one of Nigeria's leading financial markets. Their trades have relatively low risks, and of high analytics and market research. The NGX 30 Index comprises of companies of different sectors such as banking, production, oil and gas, consumer goods etc. Their transactions are done based on the Nigerian Stock Exchange, meaning you can buy and sell it like a regular stock.

11. Blockchain technology and Crypto investment

Cryptocurrency through blockchain technology has taken the financial world by surprise. In recent years, this financial technology had driven trillions of funds transfer and even supported investments. The risk in blockchain investment is high but it is secure if you understand how the platforms work.

All you need to do is to buy a promising coin like Bitcoin and either trade it or allow it to be there until the price rises, just like forex business. Most crypto wallets also allow users to stake their crypto property. In staking, your coin is used by traders for trading on the crypto market, while you benefit from the interest obtained from the process.

We will need to talk more about crypto business in our future post. Subscribe to our newsletter so that you will receive the update.

12. Personal business investment

Owing and running your business either as a sole proprietor or in partnership is another great investment option. You can start a lone business that becomes a global brand. While there is a high chance of gaining in business, the risk can also be great. Therefore, before starting a business, plan very well and seek the best business ideas that can make your business realistic. Also go to a business line that is lucrative in your locality to make it easy for you to run.

Final Words

In a nutshell, for beginners who just joined the investment market, the aforementioned investments are ideal for your journey. They will enable you to kickstart your journey based on their flexible pattern of trade, easy to access funds, all in one purchase, among other benefits.

Always do well to remember that there are no investments without risks. And remember that now is always the right time to invest, make research, seek help and advice when necessary and make more informed decisions. Getting financial education and financial literacy books relating to investment can really help. Begin your investment today!