The global financial crisis is no longer an excuse for investors not to seek answers regarding how to invest as well as where to invest in 2011. Thinking about it logically, when the economy is down and hits the bottom, the only direction it can go is to go up. This is exactly why it is a good idea to really start thinking about different places as well as methods to invest your money. In order to help you with that, there are some relevant tips and tricks here.
Nowadays, you never know where is the safest place to stash your cash and at the same time watch it grow after a few years. Fortunately, there are still many ways you can grow your money through investments, as long as you are prepared for the possible risks too. Once again, there is no such thing as guarantee because there are always risks no matter how you invest.
Honestly, you can build an impressive portfolio from only a few dollars. Start by looking into DRP, which stands for Dividend Reinvestment Plans as well as DSP which stands for Direct Stock Purchase Plans. These two plans let the investor to purchase stock market shares directly from large firms or their agents. This saves you a certain amount of money as you do not need to pay any commissions to a broker.
Besides that, there are also thousands of companies that you can buy shares from through DRP and DSP scheme. Another huge advantage of investing your money in this way is that you can opt to get a small amount of money deducted from your salary on the installment basis with no additional fees to pay. Hence, you do not really have to make any huge changes to your monthly budget for expenses.
However, if you have more than a few dollars and you have big wish to make much bigger profits in a few years down the road, then there is no reason why you should not consider the index fund which will give you the same results as the stock market. The advantage of index fund is that you do not have to bother with having to choose individual stocks.
Just to be on the safe side anyway, you are recommended to choose from one of the three most reliable stock exchanges which are namely Dow Jones, NASDAQ as well as S&P 500. You will most likely earn a 10 percent return on your investment every year.