What are the Best Ways to Invest?

For a good investment you need to know why, how and when to invest. So now is the right time to invest. By the power of compound returns in investment you can grow your money. Comparably there are 4 best ways to invest your money.

Though many people do not trust the financial markets but historically it’s a fact, investing in Stock Market actually paid off. Invest in small sum by a method called “dollar cost averaging” over a length of time. The method works like when the market is high you are buying fewer shares and when it is low, vice-versa. So, over a time, one can have lower average share price using this method. Some tools we can use to invest:

A typical suggestion is to invest in mutual funds or ETFs. For mutual fund you can use a financial-advisor who on your behalf will sort out the well-performing actively managed funds from the other non-performing funds else you can cling to an existing brokerage-account. There are also few companies who will help you to invest money in ETFs based on your appetite for risk, investing goals and other factors without any charge for managing. You can also find very low charge robo-advisers for this purpose.

The index funds which are not actively managed but have a good long history of solid investment and can be used for retirement purpose. These funds hold every stock in an index like the S&P 500, including big-name companies such as Apple, Microsoft and Google. As these companies offer low turn-over rates so their fees and tax bills tend to be low also. The trick here is to buy all the big companies through the S&P 500 consistently in a very low-cost way and not picking up the right company. Even, say in a period of 10 years, low-cost index funds could outperform hedge funds.

Peer-to-Peer Lending is a method to lend money to individuals in small increments as if you were the bank and getting interest from them using platforms like Lending Club and Prosper.

In Real Estate investment, not necessarily requires dealing physically and going through the hassles of a landlord. There are many ways by which you can invest without dealing with the physical property like real estate notes or Fundrise. These are all hands-off investments where you will be a part of the owner without dealing physically. You can earn good returns but there are risks too, for trusting third-party on your investments.

Investing in yourself is one of the best ways for investment. There are few ways to do so like, read a lot of books on successful personal finance strategies or leadership skills which will make you absolutely smarter in a course of time, investing into material that you can learn from other people, personal coaching and don’t think about the idea of going back to a business-school. Though this kind of investment might sound cliché but it’s a bet that could absolutely pay-off.