Investment Ideas For You To Start Your Portfolio

If you're looking to start investing and creating a decent portfolio, you can take many different paths. When we think about investing, we instantly think about putting money into stocks and shares, but that's not the only option. Saving money via investments is naturally a better option than leaving your money in a low-quality savings account with a bank, as these barely even beat inflation, if ever. More often than not, your money loses value when sitting in an account like that. To help you make smart decisions with your money, here are some investment ideas for you to consider when starting.

S&P 500 Index Funds

This is a somewhat higher risk than government bonds and standard investing, as there is more volatility here. However, the S&P 500 offers some great potential profits for investors over the long term. This isn't the sort of thing you invest in for quick gains, and you'll likely see those numbers go into the red now and again. However, the idea is that over time, it will increase in value more than before, and you can continue to invest during each dip. This fund includes many different companies from almost any industry you can think of, meaning that there is somewhat more stability here than investing your money into one single company.

Real Estate

Easily one of the best investment options around, yet the one that remains the most difficult to get involved in. If you have the capital to get started, buying real estate is a great use of your money. First, you'll need a deposit if you want to buy a property with a mortgage, and then you can either leave the property to increase in value as you renovate it and then sell it on for profit, or rent it out and pay off the mortgage with the money you earn from your tenants. Property prices continue to fluctuate, and more often than not, they will go up. When you sell the property, you'll earn money back that you paid off on the mortgage and the extra value that the property gained.

Cryptocurrency

Another popular investment opportunity today is cryptocurrency. This is a much riskier option, but you'll still usually find it in every investor's portfolio due to the potential for big returns. Of course, this also means that you can make losses too, so it's important to remember that your capital is at risk when investing, as with most other investments. You can visit cryptocurrency exchanges such as Paxful when looking at buying bitcoins quickly and securely. Don't forget that when investing in cryptocurrency, you want to ensure you have somewhere to store them. Some exchanges like Paxful offer secure hot wallets to store them online, ready for trading, but it's also worth having a backup, cold storage method such as a flash drive.

Dividend Stocks

Certain stocks that you can purchase on the marketplace offer what is known as dividends. These are essentially the same as normal stocks when you buy them, as they'll appreciate or depreciate in value over time, but these stocks will also provide you with regular dividends. These are essentially regular payments made to shareholders, such as annually or quarterly, depending on the business. These are a great way to invest while also receiving guaranteed payouts over time. This can then either be reinvested, increasing the value of your overall shares, or withdrawn for personal use.