There are so many people who want their money to grow, but they are also afraid to take risks. There is in fact a good method to follow.
Some people are still familiar with the old rule of making investments. Mark Johnson testified the effectivity of the old rule of investment which was also used by so many individuals. If you will risk more, then you are most likely going to receive more. You can invest in safe investments just like Mark Johnson, however you will not have huge profits. It is not the case that you will get poor after you lose the investment. If you understand this rule, make sure that you are willing to accept any amount of income depending on the amount of money you invested. You will understand it better if you put it this way: How can I invest my money in the safest way possible while allowing me to receive the return I like?
Putting your money in the bank as a form of savings could also be a type of investment. A lot of people think that investing and saving are not alike, however, if you will see the risk and return principle, you will know that savings is a very little form if investment involving risks. Even if you will only invest by saving your money in the bank, still you can increase the return. Mark Johnson is a person who might have also used this particular method and taken this type of risk.
The United States Saving Bonds is among the bonds that can be another form of low risk investment. There are a lot of different kinds of bonds issued by corporate entities and by the government. The bond means promising to repay the money you borrowed and interest over a specific time period. They are quite similar to others in some parts. You will unfortunately get a lower return than the money you invested.
Among the safer techniques that will allow you to have more return and lesser risk is the mutual funds. A mutual fund usually obtains investments from a group of individual investors and places the entire amount under the control of the fund manager. The fund manager invests in different stocks and investments in order to make an income. The income will be divided among the investors. The kind of fund for the investment will serve as the basis for the fund manager before investing into something, and it will be better if he will engage the investment in different stocks so that there is less chances of creating a huge loss. Administrative costs must also be paid for running the fund, thus a part of the profit will be used. This will lessen the profit, however, the mutual fund will still be a safe investment because you will have a higher return in this than simple savings.
Get To Know The Author: Kenneth Bervig is a part-time writer and blogger. He enjoys keeping up on industry trends, writing, and spending time with his dog. Get more details about this article’s subject: Mark Johnson from Baltimore on FB You can find more on the author’s profile page.