Low Risk Investment for Beginners

Investment is another face for business. Both terms mean one goal which is to gain profit or interest utilizing the available capital or liquidity of funds. For a financial guru or expert economist doing successful investment takes time to form the right attitude in forming one’s framework of mind to attract wealth under one’s control and disposal.

The traditional way of doing business or investment focuses mainly on the buying and selling scheme. It is very observable in the way small, medium and big business establishments like convenience stores, malls, and those companies dealing or producing goods necessary for everyday subsistence such as textile or clothing companies, restaurants or food and beverages conglomerate and others.

Many seasoned investors who know the “in and out” of business regard investment as playing along with time bearing the heart or passion for economic success. If truly time is gold, then investment is their field of making gold or money in time. This is so because investors are often observed or seen doing business through stock markets.

They dedicate much of their time observing the trend of stock prices. When the price of a certain stock they bought is valued exponentially in time then they do the trading and earn much profit or returns.invest 10000

For newcomers or players in investment and who have also limited capital, it is essential to know how to yield profit in spite of the presumed limitation. Investment has many types but for those who are investment beginners the discussion on short term deposit is a good start to consider.

The short term deposit is the most familiar or common form of doing investment. This is very viable to willing individuals who want to secure their cash and 24/7 access to their liquidity for any eventualities or emergency use. It is done through opening an account in any bank institution and put a certain amount and that amount will get interest according to the percentage offered by the bank per annum.

The idea to invest 10,000 dollars for instance is feasible. The investor can expect to get interest (though figuratively small but significant than keeping it idle inside one’s closet) in a certain period of time. With this type of investment, the risk involved is relatively insignificant especially when the bank is a well-established one. This is why it is good to invest in banks that are proven and tested. Banks with excellent reputation and banking record are commendable.

Incidents of bankruptcy or bank closures happen most frequently among rural or countryside type of banks. But investors should be extra careful because banks of this kind offer rates ranging from 5-12% per year. The offer is really enticing and difficult to ignore. Some even adopted the “double your money” scheme for a lock-in period of 5 years. It simply means the investment of $10,000 becomes $20,000 after 5 years!

As one matures in investing, other types or forms of investment are available like the stocks or shares acquisition, bonds, and property investment. It is good to bear in mind that investment is not about following what successful investors do instead it is a way of doing business in one’s passionate manner to increase the yield and liquidity.

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