Figuring out where to invest your money could prove to be very difficult given the many options available and the very real risk of losing money in the process. There are, however, a number of investment options that are lower risk and still offer a decent payout. In any case, if you have a significant amount of income left after handling all your financial obligations that money is better off earning you more money out there rather than just idling around doing nothing. Below you will find a list of the best ways to invest your money in 2017.
Online Trading
Online trading involves the buying and selling of securities across an electronic platform. Success in online trading will require you to first get a thorough understanding of how the market works by using the learning resources and practice accounts offered by many online brokerage firms e.g. CMC Markets. Once you’ve learned how to use market forces to your advantage and how to develop strategies that work, you can begin making trades on platforms offered by these brokerage firms using your investable capital. Make sure that you practice as much as possible so that you’re exposed to as many possible market eventualities as possible before you invest your money. This will give you an opportunity to develop valuable coping mechanisms early enough before you begin putting your money on the line. Demo accounts allow you to do this.
Peer-to-peer Lending
Peer-to-peer lending involves loaning money to someone using an online lending platform and earning interest from it. While the prospect of earning interest might seem exciting, it’s important to conduct a thorough examination of all available loans on a website and match them up to the level of risk you’re prepared to handle. Once you have found loans you would like to fund, you invest your money through the platform and earn monthly repayments plus interest until the investment horizon is up.
Using Robo-Advisers
This is a great investment option for individuals who would like to invest their money but do not have the requisite skills and expertise to do so or are too busy with other priorities. Robo-advisers refer to companies that use automated software to manage your investment portfolio and make decisions on your behalf based on specified criteria. You’ll be provided with a questionnaire while signing up where you’ll state your investment objectives and how much interest you’re willing to handle. The advantage of using robo-advisers is that their charges are very affordable and you can easily keep tabs on your progress on their user-friendly websites.
Investing in Mutual Funds
A mutual fund refers to an investment company that pools cash from a large group of investors and invests it in all manner of securities including stocks and bonds. The pool of cash represents the fund’s portfolio and each investor’s financial contribution represents a given number of shares that signify their part-ownership. The advantages of mutual funds include
- The assurance that your money is being managed by professionals who know exactly what they are doing.
- Mutual funds diversify their investments to reduce the risks of making losses.
- The majority of mutual funds offer reasonably priced rates to investors especially beginners.
- An investor has the freedom to redeem his shares at any time.
When investing in mutual funds, it is important, however, to always keep an eye on the fees. Some fund managers charge high fees that eat into your returns so make sure to only invest in low-cost funds if you choose the mutual fund investment route.
Invest in Real Estate
While investing in real estate seems like a great idea, many people are turned off by the idea of being involved in the day-to-day running and management of a property. This is where real estate crowdfunding platforms come in. These companies save you the trouble of having to look for the right property, investing in it and managing it. All you have to do is go online, browse great deals that have already been vetted, take your pick and buy some shares in it. Given the real estate sectors in many places haven’t recovered from the market crash in 2008, you are bound to find some great deals online. Returns on investments vary depending on where you’ve invested and the nature of the project.
Conducting in-depth research on the field you’ve chosen to invest in cannot be stressed enough. The last thing you want to do is invest your hard earned cash in something that seemed profitable at face value but turns out to be a regrettable choice.
