You may think to invest your savings or idle money to boost up your life standard or have a financial freedom after your retirement. But you are confused to find a better investment opportunity to invest your money safely. There are several ways of investment but need to choose the best one appropriate with your desire and affordability. The most common and best investment opportunities may in front of your eyes but you missing or overseeing. Here we just try to discuss those common opportunities that you also know. It’s better to start discussion without wasting time to find some most common, simple and suitable investments opportunities.
- Fixed Deposit
Fixed deposit is the kind of investment opportunity where you need to deposit you savings or free money for a certain time period in a bank or financial institute. Normally the time duration of this type of deposit is three month to five years. Generally fixed deposit gives you high interest rate than normal saving account. But once you put the money as the condition, you can’t take back before the account maturity. At the maturity of the fund, you will receive the total fund along with the interest. This investment is safe and has guaranteed return without losing a single penny.
- Money Market
You may go for open a money market account which offered by bank or credit union. This type of account not as like the general saving account but a high interest paying account with some conditions. The most common condition is that you have to have a minimum balance which varies by institute where you opened your account and also has restriction of your withdrawal transactions. Normally minimum account balance requirement between $1,000- $5,000. This account investment is safe but there some possibilities to lose money because some institute take some account maintenance fee or has penalty on below minimum balance and over withdrawal transaction of allowable transaction. So need extra care to manage this account.
- Mutual Funds
Mutual fund can be a better investment opportunity but its need a group of investor to invest together. Group investment can invest in different stock, bond and grab other investment opportunity which may not possible for one. Mutual funds some time need to add some level of management expertise because the investments decision chosen by a portfolio manager. Manage of mutual funds are easy but investor should aware about high fee which known as management expense ratios (MERs). If you make your decision for mutual fund than you should consider buying low fee fund that tracks an index and this performance build many large mutual funds anyway.
- Exchange-Traded Funds
One of the disadvantages of mutual fund is that they can’t build so first. Even some time investor incurs fees when they try. An Exchange-Traded Funds almost like a mutual fund but it’s a combination of many different investor assets. Exchange-Traded Funds are trade on the stock market like stocks. Stock market allows shareholders change their ownership by this market very easily. This fund exchange or management fees are lower than mutual funds, even this funds has treading commission on buy and sale. The returns from this investment depend on market trend and this type of investment has significant risk. An experienced investor can minimize or avoid the risk of this investment.
Stock market can be one of investment opportunity for you but that’s not easy to grab the return from here without losing money. So you need to take time and move slow to set your mind to invest here. Try to gather knowledge about this market as much you can. You may find many tips related articles through internet about stock market. After owing some knowledge, find any low cost brokers that make trading relatively inexpensive. Invest a little by your affordable range to buy some stocks. Yes you may lose it but in benefit you can understand why you lose and can more careful to picks your next stocks.
- Retirement Account
Retirement account has many investment opportunities like 401(k), IRA, or 403(b). This is to be best if you start your savings right now before you start your retire life. Even your company has any offer match with this than take it. Make savings as your habit. Retirement account not just an account but also an account that include a range of different investment opportunity. 401(k) may be one of the best investment decisions for your retirement account. Although this account has other benefits and features including tax break. So you can turn your retirement account into a safest and comfortable investment opportunity.
At the end of the article, you may smile and think that you know all this investing opportunity from early time. Beginning of the article I said, yes you know all of those but may be missed or overseeing. And in this article I did not say or discus anything new but try to aware you the common and suitable ways of investment around you.