Best Investments for Beginners

Systematic investments can be a great way of accumulating wealth for a secure future. Wealth creation requires a long term investment approach and investing skills which include analyzing risks in various forms of investments and balancing them properly. There are many best short term money investments for beginners apart from the long term investments, which are equally profitable.The ideal way of explaining the concept of investments for beginners is by segregating them into short term and long term investments.

Short Term Investments Vs. Long Term Investments

If you go to an investment analyst, he will mostly suggest that you go for long term investments like mutual funds or gold. This is because the retail investors will not get trapped in these investment instruments and will be able to meet their targets of wealth creation successfully. Given in the table below is the comparison between short term investments and long term investments for beginners.

Comparison Between Short Term and Long Term Investments
Short Term Investments	Long Term Investments
Short term investments are generally done for a maximum time horizon of one year	Long term investments are made for several years to take advantage of improving economic conditions
Short term investments can give quick gains to investors if they are able to take right decisions at the right time	Long term investments might not give quick returns and an investor needs to be patient with them
Short term investments are more risky than long term investments due to the volatility in economic growth and stock markets	Long term investments are much safer as compared to short term investments if the overall outlook on the sectors of investment is positive
Short term investments are a good choice for people with excess cash and for those who can take high risks and bear losses at times	Long term investments are for aggressive as well as defensive investors

Investment Options for Beginners
Here are a few examples of smart investments for beginners:

Direct Stock Investments
Direct stock investments can be a good investment for beginners with a basic knowledge of the markets. Stock investments can either be of the short term nature or long term depending on the preference of the investor. These investments need to be planned in a systematic manner by being aware of one's risk profile.

Bonds
Bonds would be included under the category of long term and low-risk investments for beginners. You can think of buying long term bonds of companies run by the government for guaranteed returns. Bonds give fixed returns to investors irrespective of the company's performance which makes them a great investment option.

Mutual Funds
Mutual funds can be one of the ideal investments for beginners who do not have the time and knowledge to track the capital markets. By studying the returns given by funds in the past and choosing a good mutual fund company, you can definitely get around 15-20% annual returns on your investments.

Real Estate
Real estate can be a good choice for long term investments, as well as a great short term investment option for property dealers. There are people who buy properties for sudden price appreciation and sell them at good valuations, while some others hold the properties for several years. Device an investment strategy that suits you and reap the benefits of the real estate boom.

Fixed Deposits
Long term fixed deposits can generate superior returns and keep you completely insulated from the ups and downs in the capital markets. This is a good investment option for people of all age groups.

Gold
Gold prices are showing tremendous appreciation which makes it a good investment bet for the long term. Buy gold in the electronic form as this reduces the risk of owning it. Sell it when you get decent profits and re-invest the money at lower levels.

Hoping that you have clearly understood the different ways of investing money, as well as the difference between the short and long term investments, I would like to sign off here. Good luck!