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Investing in Shares and Bonds Tips for Beginners: Safe avenues

By Charles Hopkins Published 01/22/2009 | Finance
Many beginners in the investing field may be worrying about the bad time of the investment opportunities, especially in shares and bonds. The unpredictable fluctuations in the stock markets are real causes of worry for the investors. If you are a beginner in this field, you will be more worried about investing in such an uncertain period. Many economics and share market experts opine that the present period of low stock indexes is a good time for beginners to purchase the good shares. They have to be little careful in selecting the perfect portfolios.

 In stocks, there are many risk free options for the people who are interested in investing. These include mutual funds and bonds. Especially Government bonds are very solid and reliable. Investors can be assured of getting their hard earned money together with the reasonable interest within the stipulated time. Bonds are acclaimed to be the best investment portfolio at bad times. Short term bonds (bonds of 1 to 2 years) and long term bonds (2 to 10 years) are abundantly available in the financial market. These bonds show steady growth and assure minimum return for investors. This is a best option for tension free investment. This investment does not require any special analysis or careful evaluation, specifically if you are planning to invest in treasury body, municipal bonds and other government bonds.

Second option in stock markets is mutual funds. Mutual funds are all not risk free. But the fluctuations in stock markets do not affect the mutual funds much. This is primarily because, mutual fund money goes to various investments including short, medium and long term investments. Mutual funds are best suited to make up the loss in some areas with the gain in some other areas. This way one can consider the mutual funds as a relatively less risk investment option. You have to make sure that the mutual fund managers are reliable and have good reputations. You have to do a careful study before deciding up on the mutual funds in which you want to deposit your money.

Next option in stock markets is the investment in shares. This is the most risky investment opportunity. An investor requires thorough analysis and fundamental ideas of economic conditions and terms. Just observing couple of weeks trends of a share can be misleading. When you opt for a share, it is better to make sure that the profile of the company is good for at least past few years. Also make sure that the management of the company consists of reputed, knowledgeable and experienced professionals.

There are many online websites which gives many analysis tools and tips for the selection of perfect investment avenues in stocks and bonds. As a beginner, you should spend some time in these websites to find out various aspects of the share and stock markets. This will absolutely help you to get introduced in to the field and to select best investment options.