Posts

What are the investment options available for young people?

avatar of @iskafan
25
@iskafan
·
·
0 views
·
5 min read

If you’re like many young people today, you might have a lot of ideas about the types of investments you would like to make with your savings. You may be excited about the idea of building an investment portfolio that will help you secure your future and grow it too. But, as it turns out, investing money, is not as easy as it sounds, because it requires time and effort. At the same time, it has risks too. Investing can be a great way to build wealth over time but if you don’t do it right, then it can work against you instead. However, if you find the right strategies and tactics, you can invest in any or all of these, after doing your research; Source

Stocks

There is still a lot of hype surrounding investing in stocks, many investors today are attracted to this method because they see it as quick, easy, and convenient. However, not many investors are aware of the fact that stocks are a form of risky investment. If you don’t have the knowledge or the ability to analyze a company’s performance, then what is the point of buying stocks?

Furthermore, you should understand that stocks are extremely volatile investment options, you could end up losing a great deal of money in only a few years. You should also be aware that many companies will experience significant changes in the business environment over a short period, which could result in stocks having a negative return for investors.

Mutual Funds

Mutual funds are another popular choice for young investors, this is a combination of several stocks that are owned by a single company. While buying a mutual fund is considered to be a safer investment choice than buying stocks, it is still a high-risk investment option. The main risk associated with mutual funds is that they’re not FDIC-insured, which means if the company that owns the fund goes out of business, you’re on the hook for the full amount of your investment.

For example, let’s say you invest $10,000 in a mutual fund that holds stocks related to the restaurant industry. The fund manager may decide that this industry is experiencing too much competition from online food delivery services, so he sells all of his stocks in this industry and replaces them with stocks related to online retailing, where he believes competition will be less intense. Now you have a case where the fund manager took a lazy approach to invest because he didn’t bother to analyze the changing business environment. You, on the other hand, received poor returns.

S&P 500 index funds

Investors who are looking to build a solid long-term investment portfolio may consider S&P 500 index funds. These are designed to mirror the performance of the S&P 500 stock market index. The S&P 500 index is a market-cap weighted index of large-cap companies in the U.S. stock market.

There are several things to keep in mind before you choose to invest in an S&P 500 index fund. First, you’ll need to know how much you can afford to invest and how long you’re willing to wait for your investment returns to come in. S&P 500 index funds are very popular; however, they’re certainly not the only type of funds you can use as your investment portfolio. You can also create a unique investment portfolio by combining different investment fund strategies.

Exchange Traded Funds

Another popular investment option for young investors is an exchange traded fund, also known as an ETF. ETFs are a very safe way to invest in the stock market because they’re designed to allow a single person to hold a diversified basket of different stocks. ETFs are traded on stock exchanges like regular stocks, this means they can be purchased and sold during the trading day like most stocks.

Investors can purchase and sell ETFs at any time during the trading day and they usually have very low fees. Investors should keep in mind that ETFs are designed to track the performance of a particular index, but they can also be designed to track a specific set of stocks. It’s important to understand the difference between these two types of ETFs, otherwise, you could end up wasting a lot of money on funds that aren’t relevant to your financial goals.

Real Estate Investment Trusts

Real estate investment trusts (REITs) are a relatively new type of investment that aims to profit from the appreciation of commercial properties, such as office buildings and shopping malls. REITs are similar to owning real estate, but instead of owning the buildings and shopping malls, you merely own a share in the company that owns the real estate.

Cryptocurrency

Last but not least, you might be interested to know about cryptocurrency. To some people, the idea of investing in bitcoin and other cryptocurrencies might seem a bit far-fetched, but it makes a lot of sense. After all, cryptocurrencies are just digital assets that represent a variety of assets including stocks, bonds, commodities, real estate, and others. Now, investing in cryptocurrencies is a bit different from investing in stocks, bonds, or other traditional asset classes. Instead of buying a single cryptocurrency, you would buy a share in a cryptocurrency trading fund.

Conclusion

Investing is a smart way to grow your money, but it comes with lots of risks. Make sure you stay informed, track your investments closely, and don’t put all your money in one place. With the right knowledge and patience, investing can be a fun and lucrative way to grow your money as a young person.

In the spirit of Hive power up day, I have successfully gotten to 1003HP.🎉🎉👏 Last month I did say,

I powered up 11.786 Hive and my stake moved from 914.98HP to 926.766HP. I am super closed to 1000HP and I am already feeling super excited over this. Source

Right now, I am excited to have gotten to 1003HP, after I power up about 10 Hive. And yes, I got a badge again this month.
For my hive engine tokens, last month, I had this testimony 👇👇

Yes, I have been doing my best to power up tokens like Pob, and Leo; Vyb is an automated powered up token so that's not a problem. Today, I am sitting at 1685.30656396 staked POB, 31.361 staked Leo, and 786.465 staked Vyb. I know these numbers are quite small, but, I assure you that I'll be committed to building each of them as I progress.source

And this month, I have successfully moved to 2580.85172575 POB, 96.457 LEO, and 1,431.621 VYB. Notice that I had a massive increase in my Hive Engine tokens? That's a win-win for me, and it's all because of all of your support. I am grateful.

In finality, I am still committed to building my stakes as I progress. Happy new month to everyone. Cheers.

Posted Using LeoFinance Beta