Once a business starts generating generous profits, owners face a dilemma. They could pour more funds into the existing business model, divert the profits to new projects, invest in creating a passive income, or combine these approaches.
To help you make sense of investment opportunities, an FX trading expert and BMFN founder, Paul Belogour shared his recommendations on three low-risk investment options for trading newcomers.
Mr. Belogour Advises Starting with Mutual Funds
Mutual funds are among the oldest and safest investment ventures. With minimal upfront expenses and no daily supervision necessary, you get access to dozens of bonds and stocks of different market caps. Professional analysts, managers, and brokers take care of day-to-day operations, making mutual funds a true passive income generator.
According to Paul Belogour, choosing the right mutual fund for your needs in the crucial step. Research the fund online, study reviews and reputation, consider load conditions and major industries, find strong rating positions. Do not fall for the promises of quick and huge returns and do not believe every glowing review online. Instead, ask for professional investment advice and consider the experts’ opinions to help your business earnings grow.
Information Technology Is the Next Step for Trading Novices
Once mutual funds investment returns come in, enterprising business owners start looking for new investment opportunities. Pavel Belogour recommends IT vendors and service providers as a safe and profitable option. With digital transformation taking over the business world one industry at a time, even the Financial sector turns to FinTech, InsurTech, PayTech, and more for increased process efficiency and added value. Disruptive technologies, such as artificial intelligence, Internet of Things, Big Data, and Virtual Reality, are transforming the industry landscapes, driving late adopters out of the competition.
However, Mr. Belogour cautions against thoughtless investment in Tech startups. While their ambitious plans might seem unbeatable, they often lack the industry understanding and an established workflow to take the project from idea to market success. The same can be true for “revolutionary” products, such as Google Glass, that had immense promise but ended up a market flop. Reputable IT vendors or digital natives with a variety of popular products are the safest investment bet for trading newcomers looking to establish a low-risk passive income stream.
Commodity Trading Is Not for the Faint-Hearted
Newcomer investors stay away from raw materials and consumer goods trading, considering the volatility of the market. However, Mr. Belogour feels that commodity trading can be a low-risk option if you learn to choose the periods of economic and political stability to practice your predictions. Demo accounts help business owners get a feel of the commodity trading trends that are driven by economy changes. Practice makes perfect when you get a chance to study the ebb and flow of prices without risking the hard-earned money.
Seemingly endless investment options can overwhelm an inexperienced investor and rob them of a chance to multiply business profits. However, if you follow advice by Pavel Belogour and choose one of the top-3 low-risk investment opportunities, including mutual funds, information technology, and commodities, you will gain a new passive income stream that will generate profit without the extra time and energy investments.