Not all people are interested in buying homes as a means of living in them. The risk vs. potential rewards suggests that stocks and diversified stock funds are no longer the best investment options. This is what the great John Bogle, founder of Vanguard and index fund pioneer says, “an investor with minimal curiosity will learn that the shortest and surest route to top-quartile performance is bottom-quartile expenses.
This means that they are the investors who will have interest bearing savings accounts, or they will invest their money into mutual funds, CDs or Treasury bills. But there are many other financial instruments are available which give us a higher rate of return than fixed deposit like equity, mutual funds, and Government securities.
Debt is the amount of money that we borrow from other people when we are not able to meet our financial obligations. If you are already employed, start investing in stocks as a part time job. Investment in high-yield savings earns the investor a fixed interest rate for returns at a very competitive market price.
When you invest your money in stocks, your objective should be to create wealth not only for your daily needs, but also for retirement, marriage, education, vacations, entertainment, medical expenses, and purchasing real estate etc. As risk increases the cost of stocks fall, and investors lose money.
Based on the kind of investor you are, you can invest either in high risk investments or low risk investments. You cannot be a regular investor for just six months and expect any appreciable returns. Stocks are not cheap, but there are two sectors that might be interesting: oil stocks and natural resources funds (if oil prices get even cheaper); and gold stocks and funds (if gold gets cheaper).