As they say that you don’t need a lot of money to start the investment. It can be done with a small amount of money. No, matter if you have hundreds or thousands of Dirhams. The most essential thing is to start with just a little. Now, the question arises is where to start. What actually is the best way to get your investment journey if you are living in UAE.Â
To help you out below we have curated the list of 5 popular ways of Money investments from where you can start your journey of financial independence.Â
Stocks
A Stock is a portion of a company that can own by any institutional or individual investors. When a stock is purchased by you of a company you actually own a certain portion of the company. If you have good knowledge you can make money through stock in the form of dividend and or with the price appreciation in the stock market.Â
How to Invest in UAE Stock Market.Â
To invest in the UAE stock market, you’ll need a stockbroker who can connect you to any of the UAE’s three stock exchanges: Dubai Financial Market (DFM), NASDAQ Dubai, and Abu Dhabi Securities Exchange (ADX). Individuals cannot purchase or sell equities in the UAE stock market (or any other) without the assistance of a broker.
Any broker in the UAE will provide you with access to any of the three UAE stock markets listed above. However, if your financial ambitions include the purchase of foreign US equities such as Apple, Google, and Facebook, you will require a broker who can provide you access to international stock markets such as the New York Stock Exchange (NYSE) and NASDAQ.
To operate in the stock market it is important to have knowledge about stock trading. You can opt for the Moneytize stock trading course, it you want to learn stock trading in UAE. The course is specifically designed for people who are learn investing just by sitting at the their home. The best part about the course is flexibility, the course is available in online module also which means you can learn whenever you want.
Bonds
The next popular investment type are the Bonds. The Bonds are called the debt instrument that corporate companies and government use to make money. There are 3 popular type of bonds corporate bonds, National Bonds and Municipal Bonds. As a consumer you can make profit with the help of bonds in 2 ways. Bonds can be a great source of making profit.Â
Bonds gives a good amount of profit when if you holds them for the long period of the time. It can be holds for a predefined period of time and later off sell before its maturity period.
Mutual Funds
If you do not have time for the stock market you can opt for the mutual funds. In simple words mutual funds is basically like a pool of money. It is basically of various individual investor to invest money in the bonds, stock and other fixed source of Income under supervision of the fund manager. The manager is usually financially literate and has the complete knowledge about the stocks and bonds which helps to invest more and more money in different companies to offer diverse portfolio to the investor.Â
Interest, dividend or increase in the price of mutual funds help you to gain the profit through the mutual funds.Â
Mutual funds in UAE are classified into local and international mutual funds. Through the local mutual funds you can invest almost 32 mutual funds which are listed on the security and commodities authority website of UAE. For International mutual funds you can invest through exchange like NYSE and NASDAQ.
ETF
An ETF is the Exchange traded fund. It is type of pooled investment which is similar to the mutual funds. If you want to do a diversification of investment. It is like getting a basket of bonds and stock owning a share in the ETF.Â
The ETF comes with more diversification and has the less portfolio rick. Most of these ETFs are spread across different broad market.Â
REIT
If you love investing in properties then you must definitely go with REIT. The REITs is Real estate investment trusts and it is the best option to invest in the real estate without purchasing a property.Â
The REITS are basically in the form stocks of the companies which purchase the real estate properties or help in providing the mortgage facilities too the real state investors.Â