I have often discovered that some peoples are afraid of investing their money due to either care of losing it or some stay on confused about where to invest it. So I decided to pay some basic idea about investing your money and where should you invest as according to your requirements. While keeping you money in savings account is quite good to make fortune but it is not good for long term.

You can invest money in fundamentally following five types of assets:

Cash (e.g.: savings account in coin bank). Bonds (e.g.: a loan to a company or government). Property (e.g.: residential or commercial properties). Equities (e.g.: shares in companies). Commodities (e.g.: base metals, oil, soybeans etc.).

If we talk about returns by these assets then the general rule of thumb in investing is that the wild the asset the greater the return. For instance if we talk about cash i.e., bank deposits then it has the lowest risk of exposure but at the same time has lowest returns, bonds are quite riskier and has more or same returns, property seems to be more promising and has stable returns and if we talk about stocks and goods then they are wild but have good reappearances. So, while planning to invest you must keep in mind the amount of risk involved, the sum you can invest and the time frame for which you can invest your money.

When to invest.

If you are a salaried somebody and got the business recently then firstly you should invest in cash i.e. you should keep open some money first then you can think of investing in indemnity. To invest in stock market or percentages you must pose at-least three to six calendar months of your wage in it. While investment in property seems to be promising but it has some drawback like it is good for long term for instance if you buy a tract then you can require step up in value almost after 3-5 classes. Secondly, it is quite hard to calculate return on invested capital in property as there is bands of stuff postulated in it like rent, maintenance price etc. and transactions takes calendar months to complete.

Investment in share market is preferred by most because of its ease of use and for the amount of money you can invest in shares, as you can invest any amount. One more advantage is that you can fall apart the number of shares you bought and sell them according to your need whereas if you talk about property then you cannot sell one room of a level or house.

So if you are planning to invest for short terminal figure and looking for beneficial return on investment then you should begin thinking about investing in stock market.

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