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Realistically, we all know that investing is a brilliant way to make more money. It’s a combination of saving money and making it at the same time – if it goes well, that is. The problem many of us have is we want to invest but we have no knowledge of investing. We don’t know how to invest or what to invest in. 

What should you do in this situation? 

Yes, doing your own research and studying can help. But, here are three ideas for beginner investors to try: 

Open a private pension

A pension is a type of long-term investment. If you’re in full-time employment, you might have a pension at work. Still, opening a private one is a great way to dip your toe in the investment game. 

It’s a simple concept: every month you deposit funds into a pension pot which is then topped up by the pension provider. Over the years, you accumulate more and more funds until you reach retirement age. Now, you can withdraw all the money you put in, plus what the provider added, and plus any interest. A big profit has been made without you needing to do anything. 

Invest in index funds

As a beginner, it’s unwise to invest money in individual stocks and shares. There’s no protection and you have no guarantee that your investments will return any money. Instead, look to invest in index funds. 

You can find lots of index funds online, and they basically pool lots of different assets together. For a small fee, you invest money and the fund is controlled for you. Loads of different people all invest in the fund together, helping it generate maximum returns. It’s a relatively low-risk way of investing in the stock market, especially if you’re a newbie. 

Hire an investment management firm

If you’ve got a lot of money and don’t know how to invest it, work with an investment management firm. In simple terms, these firms take your money and invest it for you. They decide what to buy/sell depending on your goals. It’s a good idea if you want short-term gains as they can help you buy & sell assets quickly to generate a lot of money. But, investment firms also help you generate long-term gains; it’s up to you. 

Obviously, you want to feel confident when choosing an investment management firm. A good piece of advice is to look for GIPS standards verification. This will mean they follow a set of standards to offer more transparency on investment performances. It lets you know if they’re actually good at what they do and whether you can trust them. 

And there you have it; how to invest with no knowledge of investing. You don’t need to be a complete investment whizz to invest your money and see impressive gains. Start simple by opening a retirement fund or investing in index funds. If you want to be more adventurous, work with investment management firms to handle your money for you.