It can be hard to find the right investment programme for you. There are hundreds of options, with different levels of risk and different rates of return.
Some people think that investing in companies through the stock market is the best way to make money. Even though this is one of the riskiest ways to invest, skilled investors can get good returns by buying and selling stocks at just the right time.
Mutual funds are a popular way to invest, and they often hold stocks as part of their portfolio. A fund manager takes care of the investments of a group of people. Each person then puts money into the fund and shares the risk. Mutual fund investment programmes can still give you good returns, but the service isn't free, and your fund manager will get paid for his work managing the investments of the group.
An ethical investment programme is a way to invest in a market that is growing quickly but usually doesn't give as big of a return as the stock market as a whole. Ethical investing works a lot like any other fund, except that the investment vehicle won't put money into companies that don't fit with the group's goals.
Some ethical investment programmes won't put their money in companies that pollute a lot or make weapons. Instead, funds will only invest in companies that use renewable energy sources, care about their effect on the environment, or work with local communities to help people who would otherwise be victims.
You can also pay into an investment programme in many different ways. Some options will have you pay a lump sum to a manager, who will then handle all purchases made with that money over the course of the programme. In other programmes, you pay a set amount into a plan for a certain amount of time and then get money back at the end. Some of these ways to save money are personal pension plans, which you may be able to get through your employer.
Any person who wants to invest should carefully read the contract they sign with their broker or fund manager to find out what their full responsibilities are for the life of the investment programme and how their money will be used.
Even though growth is never guaranteed in an investment programme, there is no reason why, with the help of a smart fund manager or an experienced broker, you can't make big money from any investment programme you choose.
