Investing is becoming increasingly popular, and with online platforms making it easier than ever, you can make a return on your hard-earned savings. Whether you’re saving for retirement or an event that’s a little more imminent, investing can be advantageous. We must invest as responsibly as possible to stand the best chance of making a return. An investment research platform can give you insights and knowledge from all angles of investing – so you can achieve your financial goals.
Have a goal in mind
Growing your investment portfolio is a way of making your hard-earned money work for you. If you’re planning for a life event like retirement, keeping your savings in a bank account means that your money has the chance to lose value in line with inflation – choosing to invest means that you can change this.
When getting to grips with making investments, it is always best to have a goal in mind, as some investments are better for certain things than others. For example, investing in property isn’t going to make you a return in a short amount of time, but could be a good way to invest long term, which would also come with less risk to your finances. If you’re looking for an investment to make you money in the short term, you will need to research ways you can make a quick return, for example investing buy crypto or exchange-traded funds or various crypto markets.
Before you dive into investing, you should evaluate risk. In general, higher-risk investments come with higher rewards – meaning you’re likely to make a larger return, this is because the market that you’re investing in is more volatile. However, a high reward also means that you run the risk of losing a larger amount of money too. A more stable, lower-risk investment is a good way of creating steady growth within your savings in the long run, and whilst there is always the risk that you will lose money, a more stable investment means you run less of a risk of loss.
Before you invest, you should set yourself limits. Think about how much money you’re willing to lose. This can help you navigate the world of investment and can be helpful when it comes to deciding where is best to invest your money.
You must research investments before you begin. There are platforms that you can use to support you when you’re making investing your money, that can provide insights into various markets. They can help you to understand the market, and give you access to experts that can answer niche questions you may not find elsewhere. You must have a deep knowledge of what you’re investing in, to reduce the chance of losses and optimise your chance of making a return.
Types of Investment
Whilst carrying out your research into investments, you should become familiar with the types of investments available to you so you can make an informed decision and choose which is the best option for you to reach your financial goals. A few main types of investments you could choose from are:
Stocks: This means investing in a specific company. When investing, you’re buying a small share of their earnings and assets. Stocks increase and decrease in value, and some are riskier than others. You put yourself at risk of the company going out of business or losing value.
Mutual funds: This is a way of investing funds in different places within one investment. It allows you to spread your funds over a few stocks and bonds, and the risk or reward will depend on the investments included within the fund itself.
Property: Property investment can be expensive and making a return all depends on the state of the market when you decide to sell. You could buy a property and fix it up, sell it to make a profit, or become a landlord and rent your property to tenants.