Investment Strategy for beginners

Everyone thinks that investment is a very complex subject. But that’s not true, with proper knowledge and plan anyone can invest their money. If you are young and you’re doing a job or a business, you probably earning money and there are only three things you can do with your money 1. Save it 2. spend it and 3. Invest it. In modern-day society, everyone wants to invest their money, so that in old age when a person’s capacity to earn diminishes, he can fall back on his investment. but before making an investment, he needs to have a clear picture of his investment strategy or plan.

So In this article, you are going to learn how can you invest your money with high return and low risk.

The investment Strategy

In investment strategy, a person chooses a style or technique to invest their money to meet their short- and long-term goals. Basically in investment, you are putting your money into something to generate income or gain profit. All investment strategies depend on a variety of factors like your age, your time, goals, lifestyle, financial situation, available money, personal situation, and also your expected return. With the help of these factors, a person can determine what kind of investment they can make and how much risk they can tolerate.

Investing is all about patience and an investor get rewarded if they invest for long-term. if you wants to invest your money, you should know how long you can keep our money invested. at that time most people think that long term investing is very risky and to much difficult, but with the right knowledge it can be a very profitable and rewarding.

The best way to invest your money is to invest more than one investment product means to diversify your investment. Diversification helps investors to achieve consistent returns on investments and the most important aspect of diversification is that it lowers the overall risk of investing.

In Diversification Strategy an investor invest in wide variety of investment products to reduce portfolio risk. diversification is mostly done in different investment products such as real estate, Bonds, Mutual Fund, Commodities, precious metal, etc.

Investment Products

These days Different people have needs and different investments and they use different investment products. long term investment is good but if you keep your money invested at one place, then it increase your risk. The best way to invest your money is to investing more than one investment product. Investing in more than one investment product help you to meet your financial goals and grow your wealth over time that lets you to sleep at night.

There are many investments product where you can invest your money. This investment products are:

  1. Stock
  2. Bonds
  3. Mutual fund
  4. Real estate
  5. Precious metal
  6. Insurance
  7. Commodities
  8. Business

Each investment product has different distinct characteristics and each is designed to satisfy different needs. in investment strategy, the best way to invest your money is that you can invest in more than one investment product because this can help you to maximize your return and minimize your loss.

here is the example why investing in more than one investment product is best way to invest:-

MR.X and MR.Y, two different people are investing for 20 years, and MR.X invests in a single investment product, while MR.Y invests in two different Investment products.

MR.X decides to invest $10000 in mutual fund that has historically given an average annual return of 8%.

MR.Y, on the other hand, decides to diversify his investment by putting $5000 in a mutual fund with an average annual return of 8% and $5000 in stock that have historically given an average annual return of 10%.

After 20 years, MR.X investment would have grown to around $46610, assuming the mutual fund continued to yield an average annual return of 8%.

Meanwhile, MR.Y’s investment in mutual fund would have grown to around $23304.79, while his investment in stocks would have grown to around $33637.50, assuming the stock market continued to yield an average annual return of 10%.

So, after 20 years, MR,Y”s total investment would have grown to around $56942.29, which is higher than MRX’s investment of $46610. This show that investing in multiple investment products can potentially lead to higher return over long term.

Here is the growth graph of MR.X and MR.Y investment:-

Investment strategy

Also investing in two different investing products is less risky compared to investing in one investment product.

Here i suggest of some of the best investment products to invest your money:

Real Estate:

Real estate refers to land and physical structure (like:- building, home, apartment, and commercial properties). real estate can be bought, sold or rented for various purpose such as residential, commercial, industrial or agriculture. Investment in real estate could be for capital appreciation, to earn rent or self accommodation. real estate is a fruitful way to build wealth over long term. but before buying real estate you have to know what your investment goal and how much risk you can tolerate.

The reason i suggest you to invest in real estate because real estate is most reliable investment you can make and also incredibly profitable. investing in real estate can be challenging and need too much effort, but with the right knowledge, it can be seamless and rewarding.

Investing in real estate takes planning, patience, and persistence. don’t expect to make a very good return in your first years. instead , plan on creating a business through real estate that will grow steadily year after year to enable you to meet your financial goals.

here is the example of how investing in real estate work:-

Let’s assume Sam bought a house for $730000 and decides to rent is out for $1500 per month. the early maintenance charge for the house is $5000 and the property tax rate is 1.4% of the house value per year and the value of house increased by 3.4% per year.

After 20 Years, the total rent earned would be = $360000

The property tax for 20 years would be = $204400

The total maintenance cost for 20 years would be = $100000

Therefore, the total expenses for 20 years would be:

$204400 + $100000 = $304400.

The net income for 20 years would be:

$304400 – 360000 = $55600.

Now let’s consider the change in the value of the house. after 20 years, the value of the house would increased by 3.4% annually. so after 20 years the value of sam’s house would be $1424733.

So After 20 years the net profit of sam would be:

$55600 + $1424733 = $1535933

after 20 years if sam want to sell the house at this point, he would be make profit of $805933.

This is an example of how investing works in real estate investing. however, it is important to note that this calculation does not account for other expenses such as mortgage payments, rental property deductions, and potential fluctuation in property value. So that’s why you have to know, how real estate work and how you can invest in real estate properly. At the end, i recommend you that before investing in real estate, don’t skip you real estate investing education. there are many different ways to get educated in real estate investing and you don’t need to pay hundreds or thousands of dollars to learn real estate investing.

Mutual funds:

Mutual fund is a pool of money managed by professional fund manager ( A mutual fund managers manages the money of investors).Understanding Mutual Fund system is very easy. If you just look at the words of this term you will get an idea what it is. What mutual means is shared and what fund means is pool of money or collection of money collected from different individuals. And after collecting, invest those money. And after getting profit from that investment after a certain period of time, distribute those money into every individuals as per their contribution to that fund.

Mutual fund was created to invests retail investors money in stocks market, shares, money market, bonds, etc to generate returns. when vast number of small investor invest money in mutual fund then the combined holding of the fund is known as its portfolio.

Mutual funds are less risky than individual stocks due to the funds diversification. diversification helps fund manager to achieve higher yield return on average. success of a diversified portfolio depends on the skills of the fund managers. it is the fund managers who decides when and where to invest.


Investing in stocks means buying shares of ownership in public company. stocks market is a place where buyers and sellers meet to trade of shares of publicly listed companies. in stocks market companies issue equity shares to shareholders to raise capital for growth and expansion.

Investing in stocks is difficult compared to other investment product because stock market is highly volatile and unpredictable. before investing in stock market you need to know that there are many things in stock market, and without knowing this things don’t put your money in stock market.

There are many investors believe that they are skillful because they are doing well with their investment in the stock market but that’s not true, However, they fail to realize that their investment performance is the result of the stock market performance, and this is the reason why they fail in long-term investment.

But when an investor with the right information, strategy, and mindset invests in the stock market they always make a tons of profits. investing in stocks is risky but also very profitable compared to others investment products.

So, if you want to invest in stock market you need to know everything about stocks market and this is important for every investors.

Precious Metal:

Investing in precious metals is better than any investment product. if you’re investing for a long-term goal, like retirement or your child’s college education then investing in precious metals, like gold, silver, diamond, etc are a great choice. There are many precious metals but you have to choose any one or two of them according to your goals. if you want to buy gold then it is a great choice because gold has high liquidity and inflation-beating capacity. these days demands of gold is increasing day-by-day. wants of goods which are created to show the luxuries in the society are called wants of luxuries and the best example of these are gold, diamond etc. in these days gold is necessary for investor to hold in their portfolio because gold is an asset with different qualities that make it very unique.

gold consider as a best value-in-exchange commodity because it can be exchanged with any commodity and also with money. physical gold can be bought and stored in the form of earring, bracelets, jewellery, necklaces etc.

Here is the past 10 years growth rate of gold in India:-

gold price

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