What do you think is the best mode of investment and why?

Answer 1

Depends on several factors: your age, your ability to tolerate risk, the amount of income you can afford to invest and possibly lose, if you are married or investing with a significant other- - your mates wishes.

Answer 2

With little money to invest I would suggest Vanguard's Star Mutual Fund. The fund requires little initial investment, small incremental additional investments, low costs, diversification.

Answer 3

It is highly dependance on your intention.
Quick $$? Steady growth? Low risk?

The best form of growing money with little labour is still in stock and shares market. The key is not to get greedy in the process. Nowsaday, there are many different ways of playing the market, option trading, etc. The rule of the thumb is you got to understand market influence and the company performance in order to be certain of the probable out comes.

And pls learn the necessary skill and practise paper trade before entering any form of investment.

Good Luck

Answer 4

HI, Mutual Fund maybe a nice choice for you.

this is a 2-page introductory knowledge about Mutual Funds. it also includes something about how to invest mutual funds.

http://www.bernanke.cn/what-is-a-mutual-fund.html

wish it will help you. Good Luck!

Answer 5

Mutual funds or annuities.
Mutual funds give a great long-term return, so they're great as retirement funds like Roth IRAs.
Annuities also give mutual fund-type returns, sometimes with the safety of a guarantee against loss of principal.

Answer 6

The best way is Real Estate! Here's why: As long as you do enough research you can find a "motivated seller", usually one that is trying to sell their home by themselves (aka FSBO - for sale by owner)... you find those just by walking around the areas that you may want to own a home. Then you find out if their loan is assumable (which means they can put your name on it and take their name off of it and the bank is cool about the whole deal)... if it is then you find out how much they owe on the mortgage and if that mortgage is the only one. If this is all true you find out how much the payments are. Now, they might want some money for selling you the house... Ask them if they can take out a 2nd mortgage (also assumable) for that amount OR they might be willing to let you just pay them like a mortgage (it called seller carry) so you pay them like $200 a month untill they are all paid off (it works like a bank so they do get interest, like say 8% - and that's where the benifit lays for them... in the end they get more money than if they just pull out 10,000 from a 2nd). If they will do one of those then you now own a house plus what ever equity (amount of money not owed on the value of the house that can be accessed by many different ways) the seller had left after the 2nd mortgage or the money you owe them in payments (seller carry, right?).
So you got this house... but here is the catch!!! You want to get this house so that your combined payments (1. the mortgage you assumed from the seller 2. the 2nd or the payment on the seller carry ) are at least $250 less than what you can rent it out for. So if rent in your area is $1200 for a 3bd 2bath house then you need your combined payments to be $950. That way you make $250 a month and you can pay out the $50 to get a plumber when that brakes or even better you can pay a management co. to do all the work for 10% ($120) leaving you with still with $130/mo in your pocket! And all that just for finding someone to give you a house that you didn't invest a single penny into!!! All you did was take over payments, have the house signed into your name, and post a for rent sign!

Now you probably have money to invest... save it to pay for the little things like the month you don't have a renter or whatever because here is the REAL investment!

DEPRECIATION! even though you making $130/mo and even thought you have like $23,000 in equity which you can cash out in various ways, and even though everymonth your renter is paying for the management group and adding to your equity by say $300 AND they also pay you $130/mo (all in one little rent check) The government also gives you depreciation. Which means they say that it cost you something like $400/mo to upkeep the house (even though they know it doesn't... the house stands pretty good without any monthly upkeep) So when you go to file your taxes they will apy you the difference! <$400 in upkeep - $130 in cash in pocket = $270/mo from the government off of your taxes!) This is paid out at tax season, and just like uncle sam gives you back SOME money you deserve back... now, just for picking up the right house from the right seller with no money invested into it Uncle Sam is going to give you $3240 + your usuall return (until you run out of money that you gave him through your job/paycheck) + your making $1560 a year on rent + you have $23,000 equity on a home worth $130,000 that has gained value of the national average of 6% to $137,800 which means your equity was $23,000 but now is $30,800. And you add $30/mo to rent because of the 3% market inflation...
SO... total money made at the end of 1 year on $0 spent to gain a rental property investment = $12,600.
Sure it may take you 2-3mo. to find just the right house and just the right buyer... but say you do that every 2-3 months... say you only do it every year! that's $12,600/year in year one, $25,300/year in year 2, $37,900/year in year 3, $50,500/year in year 4, and $63,100/year in year 5!

With none of your own money invested into real estate... simply finding the right house with the right seller and just taking over someone elses payments and putting up a for rent sign and letting a professional company manage it for you you could be making $63,000 a year and own $115,000 of equity that is quickly available to you as cash!!!

Some people will tell you it's a lot harder than that... but it's really not. They'll say you need to set up legal structures etc... for $1,500 bucks (if you have that much ready to invest now) you can set up an LLC or even a SERIES LLC through a local attourney and they'll take care of 90% of that work and then you'll have a legal structure that will keep you completely safe from anything that may happen (say if a tennant hurts themselves and wants to sue). And it's true that you wont make all of what I said because like $8,000/year is only in equity... not monthly income... however! by year 6 you can sell your first property and make $66,970 or more if your market grows better than average. That money can be used un-taxed to buy more real estate... you may even find a great deal... like a foreclosure at that price and pay all cash for it and stick a renter in it and make the entire $1200/mo in your pocket plus ofcourse another $520 from your other rentals... that's a pretty good investment if you ask me.
And one more thing... I wouldn't take over payments if the seller had all of the equity out... try and get at least $10,000 in equity... that way if you had a situation where you needed the money you could just pull it out or sell it.

Answer 7

Under your bed.
Once you give it to them they forget how to give it back with out problems :)