Saving is not always about putting your money in the bank for a certain period. However, many people consider that saving is not profitable anymore since they have known about investment. Especially if you have a lot of money and want to develop it, you have to use it for investment. You can start your investment by choosing the types of investment that you need. Investment is not always about the stock. You can also invest your money in real estate, gold, and many more. But, if you are a beginner and do not have much money to invest in those types of investments, read the following article.
Investment types for beginners
As a beginner, you may still have a small amount of money. That is why you need to choose what kind of investment instrument you need carefully. It is not for beginners, and many wealthy people will do their research first before purchasing a certain investment. Even they have a lot of money, and they will not spend their money on any investments. Most wealthy men have their team to manage their assets and keep paying attention to the market performance. You can do the same. Do your research before deciding to purchase your investment. However, it seems impossible if you try to copy them to buy the investment instrument that needs much money, such as real estate. If you are a beginner, you still can try the following investment:
- Time Deposits
Many equate deposits with everyday savings. This investment instrument is with a higher return on profits compared to ordinary savings. Time deposits are deposits that have a specific time limit for withdrawal. The longer the period, the higher the profits. This type of investment for new enthusiasts is perfect for intelligent friends who want to have specific items in the future. Your money is safe and can be increased by getting profits. The way to register for a deposit is to go to the bank’s branch office you want. After that, go to customer service. First, ask about the deposit at the bank, how much is the profit, and what the procedure is. After that, you can submit the nominal money to be deposited.
- Life Insurance
Life insurance is usually widely used by people who think about how their family will not be too sad if he dies, especially if you have unmarried children. But still, the loss of insurance investment is the insurance company which if one day goes bankrupt.
- Peer to peer (P2P) Lending
Another type of investment for new investors with small capital and big profits is Peer-to-peer (P2P) Lending. This type of investment allows for high returns. P2P is a 2-party capital model, namely the investor who has capital and the party who needs capital for his business. P2P Lending will bring together two parties who have their individual needs and reach an agreement for their respective objectives. The profit from P2P Lending is 13 to 20 percent per year; this value is higher than the interest on savings and time deposits.
- Hobby Items
If you buy a smartphone now and then you sell it tomorrow, the price will surely fall. This is different from goods for hobbies—for example, birds, antiques, and others. Items related to hobbies will usually have a period when the price is soaring—an example of a perforated widow flower that cost up to millions yesterday. Whereas the previous month was still tens of thousands, see how much profit the owner of the interest earned. Now decide which hobby items you will buy for investment. Wait for the right time when the item is already a trend. Don’t delay selling it because usually, the trend will go down quickly too.
What about stock investment?
Stock is one of the most popular investment instruments. From beginner to wealthy people, most of them will put their money on investing stock. There are several factors why do people tend to invest in stock rather than other instruments. Stock investment is affordable, and this is suitable for a beginner. They can start investing with a hundred dollars. Besides, the transaction is easy and gives quite a profitable return. Even though stocks have a high risk, you can minimize the risk by choosing Blue Chip stocks. Blue-chip stocks can be said to be safe from losses, and their profits always increase every year. For stock investments, avoid trading stocks in the short term. The reason is that it takes a lot of analysis, and you have to be in front of the screen to see price movements. The way to start saving stocks is to choose a suitable broker. Remember, do not immediately buy shares in large quantities if you are still a beginner. Small capital, but routine is highly recommended. The good thing about saving stocks is that the profits are much higher than deposits, even gold. Stock profits can come from company dividends and profits from rising prices.
Is it profitable investing in CNAT?
In this time of the pandemic, the medical sector’s stock seems promising. The medical request demands as many people need it to cure and treat their COVID-19. However, even it seems to have increased, not all medical sectors have a good performance. Some medical industries that work in hospital management have a good performance, while biotechnology is not the same. For instance, CNAT or Conatus Pharmaceuticals, Inc. CNAT is a biotechnology company that focuses on commercializing and developing medicines specializing in liver disease treatment. CNAT is an example of a biotechnology company that is not profitable in this time of pandemic even they are selling and developing medicines. Based on the performance, if we look at the short-term investment for one to three months, this stock shows a good performance. However, if you want to have a long-term investment, one to five years, it is not a good option. Yet, it is not always true. As the stock market is highly volatile, the performance can be changed in the future.