Starting low and simple for first time investors

I recently caught a windfall so I started looking for options to make it grow. I consulted my broker friend for tips and immediately got lost in the world of equities, forex, cfd trading, bonds, and commodities trading. It was all interesting and exciting but very unfamiliar for a first time investor like me so I started going back to the basics.

We already have existing savings account in banks with yields that hardly beat the inflation rate. Nevertheless, banks give us a safe and secure tool to keep our money and get earn interest no matter how small. Since I didn’t want to risk my new found wealth in investments that have higher yields but I knew nothing of, I turned to low risk investments like mutual funds and T-bills.

Mutual Funds are ideal for first time and conservative investors because you have fund management experts managing your portfolio. You still have to monitor your funds performance to make sure that it is performing as you expected but not as much as you have to if you decide to get into trading by yourself.

Once I get the hang of investing in mutual funds then I can move on to higher and bigger stakes of forex, cfd trading and stocks. For now, my investments are moving slowly but surely.

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Tags: investment, mutual funds, stocks