Some basic concepts to consider, for those new to investing…
As the 2011 faded away into the past, with it faded away some other uncertainties. Like, with the advent of the New Year (2012), the US stocks. once again gained some certainty as a profitable investment option. The main thing that the investors count on is the ROI or the Return on Investment. Based on the ROI factor, the investors go in for large investments – in the hope of large returns. Along with the ROI, it is equally important for you to consider about the safety of the investment vehicle and the time till which you will be required to wait to get back the returns. So, which are the other investments along with the stocks which can be considered to be good in 2012?
Investments in 2012
You will have to decide on the best investment options based on the rule of thumb. Thus you are supposed to get back at least the money which you had invested. So, based on this rule the investment options that can be considered to be profitable for this year are:
- Stocks and bonds – The year 2012 is considered to be a good with regards to investments in the stocks of certain companies. It is safe to invest with the “blue chip” companies like Disney, IBM and so on who are not supposed to lose much on the market front. But, in order to earn greater ROI from stock investment, it is important for you to have a clear idea on the way the stock market works.
You can also invest money in the stock mutual funds. These are bets for those who are new to investment and have little money for investment. The risk with the stock mutual funds is that it is pool of different stocks of various companies. The transaction fees too are not a thing of concern for the investors.
You can also try out bond investments in 2012. Bonds mostly work in the same way as the Certificate of Deposits or CDs. You will be required to deposit the money for a fixed time and then earn benefits on that. In this year, you can invest in the US savings bond and the corporate or municipal bonds.
- Bank accounts and funds – You can invest your money in the different savings accounts. This is simple form of investment which helps you to get good returns. There are different types of accounts and funds. You can put your money in the saving accounts, checking accounts and so on. In addition, you can also invest your money in the income funds and the different kinds of aggressive growth funds. There are also the options for you to invest in the foreign funds and the index funds.
So, there are the three main options in which you can start investing your money for this year. In addition to this, you will also have to keep in mind that in order to save and invest, you will be required to maintain a low debt level and lower your expenditure. Only if you can have low debt levels, you will be able to direct the money towards investment.