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Investing For The First Time? Ultimate Guide To Investment For Beginners

Moneymagpie Team 21st Dec 2022 No Comments

Reading Time: 4 minutes

First-time investors may need tips on the best investment strategies before they feel more secure to start investing. This is quite understandable. After all, investing money and having a good income is the dream of many people, whether to take a trip, acquire some goods or even prepare for retirement.

Do You Know How To Start Investing?

People’s mindset has changed a lot in recent years, causing the demand for investments to grow significantly. However, it is important to know that novice investors must be careful not to make mistakes that could lead them to financial losses.

So, to help you better understand the applications and know the best ways to make your money valuable, we have compiled a list of the 4 best investments for beginners with a bonus on top! Check out to learn more!

The 4 Best Ways To Invest For Beginners

If you are just learning to invest, you may still have no idea of ​​the enormous diversity of the investment world. Contrary to what many think, the options are much more varied than savings or stock exchanges!

Therefore, I want to introduce you to some more conservative fixed-income investments ideal for beginner investors.

1 . Investment Funds

In a mutual fund, various investors pool their money and then buy stocks and bonds using the money. One key benefit of mutual funds is that they provide diversification, which means that your investment is spread out over different assets and, therefore, is less risky.

Another benefit of mutual funds is that they are managed by professional fund managers with expertise in selecting the best investments. Mutual funds can be a great option if you’re just starting to invest. However, taking financial coaching or talking to a financial advisor is important too.

2. Bank Deposit Certificate and Bank Deposit Receipt (CDB and RDB)

Two of the most interesting investments for new investors are CDB and RDB, as they are simple and very common securities in financial institutions. Banks and other institutions issue these bonds to raise money to finance their credit activities. In this way, the customer makes a loan to the financial institution and receives a daily return.

There are three different types of CDB and RDB in terms of their rates of return:

  • Pre-fixed, a modality in which interest is settled at the time of investment
  • Floating rates, which base their values ​​on a reference rate (usually the CDI)
  • Mixed, the modality that pays interest according to the value of inflation

3. Bill of Exchange (LC)

Like the other investments, the Bill of Exchange is also a fixed-income investment. However, in this case, the financial companies issue these bonds. The investor lends money to be used as backing for financing contracts, receiving, in exchange, the payment of interest on top of the amount invested.

4. Treasury Direct

The Treasury Direct, unlike the previous ones, is a public bond that aims to finance Federal Government investments in education, infrastructure, and health, among others. In this modality, the investor buys government bonds in exchange for a return, similar to private bonds.

In addition, there is also the regressive income tax, such as those of the CBD, where the rates can be different. Each treasury bond has a different yield and term, serving different purposes.

Bonus: 4 Books On Investing For Beginners

Books are a great source of knowledge for you looking for the best investment! In ​​finance, then, there are many options for those starting. So, as a bonus, we have put together 4 books for you to continue your studies after reading this article!

Letters to a Young Investor
This is the autobiographical book by author Gustavo Cerbasi, one of the world’s greatest financial educators. In the publication, the author tells about his journey to financial success and gives tips to readers who want to follow the same path.

The Zurich Axioms
Like the previous one, the book tells the story of the author, Max Gunther, whose father was a banker in the USA. The narrative focuses on losing the fear of betting and investing, looking for new patterns, and changing harmful concepts about this area.

Think and Grow Rich
Authored by Napoleon Hill, this book, released in the 1930s, is one of the best sellers of all time on the subject. The story is about successful people, but it brings many lessons you can apply in your life as an investor.

Rich Dad And Poor Dad
Robert T. Kiyosaki and Sharon Lechter wrote Rich Dad Poor Dad in 1997. A person can invest in real estate, start a business, and become more financially savvy through financial literacy, financial independence, and investing in real estate.

What To Do Next?

Now that you know where you can invest as a beginner and what risks are involved in the world of investment, all you need to do is research more, learn the ropes around different investment strategies or get someone to counsel you before you invest. Either way, this is a journey you won’t regret embarking on in the long run.

DisclaimerMoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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Jasmine Birtles

Your money-making expert. Financial journalist, TV and radio personality.

Jasmine Birtles

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