How to Start Investing Money for the First Time

Nikit Shingari

How to Start Investing Money for the First Time

There are lots of benefits to investing your money which includes growing your money, earning higher returns, reaching your financial goals and more.

Investment It is buying into something you believe will increase in value later in future. In other words, you put your money into something to get a profitable return.

Since we cannot discuss all the various investment platforms, options or assets let's consider the popular ones. Understanding the following financial instruments as well as the risk involved is very important for every beginner.

Stocks Buying a stock is buying a share of ownership in a company which investors buy to profit from when there is an increase in stock price. The performance of the company is what determines the stock price.

Mutual funds A mutual fund is a mixture of different investments, some of which are usually managed by professionals. Mutual funds are a diversified investment which is what makes it less risky to invest in them. You can get your profit or increase in value through net asset value, dividend or capital gain.

Exchange-traded funds (EFTs) ETFs are much like mutual funds but are low cost and hold various stocks and securities together. The good thing about ETFs is that you can buy and sell them on a stock exchange just like a normal stock.

Bonds Lending your money to the government or company for a profit at a certain period.

How to start investing

Decide the amount you want to invest

Choose a trading platform to create an account

Start investing