During the lock down period, I noticed a lot of people venture into stock investments as there are nothing much to do at home apart from looking at computers to learn something or earn some side income. However, to some, investment seems to be very risky and hard. Here I’m sharing with you 5 tips to invest easily:-
- Invest in Exchanged Traded Funds: Many people do not know how to select stocks. So, the easiest way is to invest in Exchange Traded Funds (ETF) available on the stock exchange. ETF is a passively managed fund which the stock selection is automatic through the pre-defined selection process, largely defined by biggest market capitalization. It normally tracks a certain benchmark index. For example, SPY is the ETF for S&P 500. When buying into SPY means you are investing into biggest 500 companies in the US. You do not need a lot of research time in researching which stocks to buy. However, you need to select countries and sectors to buy in.
- Invest in Berkshire Hathaway’s share, Ticker symbol (BRK): you should know Warren Buffett is considered one of the most successful investors in the world and has net worth of US$71.8 billion as of July 2020, making him 4th wealthiest person in the world. He is the CEO of Berkshire Hathaway. You can leverage on him by investing in his company. When you do so, you increase your wealth in the same speed as his company. There are 2 classes of his company share, BRK/A and BRK/B. You need more capital while investing in BRK/A and BRK/B is much more affordable at USD 200/share. What you need is a US brokerage account to buy the share.
- Invest in Real Estate Investment Trust (REIT): Some people like real estate very much as you see the property physically. But most of the issue with real estate investment is the down payment and the loan requirement. Some are afraid on the maintenance of the real estate while renting the real estate. REIT solves the problem of high capital requirement, debt and maintenance. REIT is operated by a trust company and the investors who invest in REIT just need to buy into the trust fund and are entitle to possible capital gain and dividend income from the real estate.
- Invest in Unit Trust Managed Portfolio: Unit trust is one of the easier ways to invest when one has no investment knowledge. While investing in Unit Trust, one leverages on the experience and knowledge of the fund manager to invest. I heard a lot of people mentioning about poor return of unit trust funds. This is mainly due to selection of the unit trust funds. While investing in a Unit Trust Managed Portfolio, it eliminates the need to select funds and even monitoring. The job of monitoring is then passed to the portfolio managers with some fees. This is definitely one of the easiest way to grow one wealth.
The above shows the 4 easy ways to invest to grow your wealth. There are pros and cons in each type of the investments listed above. Want to know which one is suitable to you? Consult me for free.
You can receive constant broadcast message relating to wealth creation to financial freedom through Telegram. Click here to subscribe to the telegram for the weekly newsletter.