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What are the best way to invest money?

Updated: 9/23/2023
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Wiki User

10y ago

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It depends on your tolerance for risk. The more risk, the more you can make. But you can also lose. The stock market is an example of this. If you bought Apple stock five years ago, you could have made an amazing profit. But if you bought GM stock, you would have lost everything.

The safest investments are usually bonds. These have a small return, but it is guaranteed. It is like having a savings account where you earn the same amount of interest all the time.

Funds are kind of in between. You put your money in the fund, and the fund managers invest a lot of people's money in a lot of different investments. They often do very well, like 10% or more, but in the last couple of years, not so good.

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11y ago
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10y ago

Depends on the amount, the time frame and the knowledge and ability of the investor. Usually small amounts taken out of the income and put away in whatever investment makes the owner comfortable is the easiest and best. If the investor does not know anything a mutual fund that "does not charge up front fees" and only charges "performance related fees". Beware most 401k's in the US and most mutual funds will charge fees that can be prohibitive and look out that the investment is spread over a large amount of different companies and countries (beware that different funds could invest in the same things so you may feel diversified but are not)

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