Following mentioned are some of the easiest and the smartest ways to invest your currency wisely in businesses:


1- Mutual funds

This is an intelligent way of investing your savings. Mutual funds are the pool of funds that are created by several organizations, companies and investors. Mutual funds are similarly like the stocks and bonds portfolios. Mutual funds support long term investments and are regarded to be one of the best kinds of investments. You can purchase these funds from any brokerage account.


2- ETFs

ETFs known as exchange-traded funds are the set of securities that normally get traded through the stock exchange or a brokerage firm. The process of buying these exchange-traded funds is somehow similar to buying individual securities. You can get the ETFs of your choice from any industry or market of your choice. ETFs usually have no sales commission. They are of different kinds and are suitable for individual investors.


3- CDs

CD is an investment form which provides you with a certificate of deposit. These deposits have a high rate of return. One thing that you need to know about this type of investment is that you cannot withdraw the money whenever you want. There is a fixed rate of return, along with a fixed date. If you want to withdraw money before that date, you need to pay the extra fee. These are low risk investments.


4- 15 percent rule

You can consistently invest 15 percent of your total income in any suitable investment chance you get. Diversified investment portfolio possesses the least risk.


5- Traditional 401

401 k is a program that is normally a part of most of the organizations. In this investment program, employers provide its employees with an opportunity to invest 2 percent of their monthly salaries in the same company they are working in. This investment opportunity is basically a saving plan that normally keeps 2 percent of your salary after reducing the income tax from your monthly salary. The investor gets these savings on his retirement.


6- IRA

IRA is of two kinds, traditional and Roth. Traditional IRA lets you pay the income taxes after your retirement as they cost you less than the usual.