How to start investing? Beginners need to know 11 ways to generate income from your money.

How many types of investments are there? This question is often asked by people who want to know through which channels their money can grow. For beginners, having a basic understanding of different investment options is very important for making smart decisions.

What options are available in the world of investing?

1. Stocks – Owning a part of a company

Buying stocks means purchasing a small ownership stake in a company listed on the stock exchange. The challenge is the high risk, but the profit opportunities are also significant.

Stock investors are mainly divided into two groups: Technical analysis which studies price patterns through charts, and Fundamental analysis which looks at the company’s financial health and performance.

Example: If you buy 100 shares of TSLA at 200 USD, and the price rises to 270 USD, you will gain 70 USD per share, totaling 7,000 USD.

For beginners, it’s recommended to start with basic education, open an account with a broker that charges reasonable fees, and practice trading with a demo account first.

2. Bonds – Fixed interest income

Bonds or debt securities are instruments issued by governments, companies, or organizations to raise funds. Bondholders are creditors and receive fixed interest rates as agreed.

Income comes from two sources: annual interest (Coupon) and capital gains if sold at a higher price.

Example: Investing 1,000 THB in a 3-year bond with a 5% annual interest rate will yield about 50 THB per year, in addition to the principal of 1,000 THB at maturity.

Beginners should understand the structure of bonds, the difference between government bonds (low risk, low interest) and corporate bonds (high risk, high return).

3. Mutual Funds – Managed by professionals

Mutual funds pool money from many investors, managed and selected by fund management companies. The advantage is that you don’t need a large amount of money but can achieve higher returns than a bank deposit.

Mutual funds come in various types: stocks, savings accounts, gold, real estate, bonds, allowing you to choose based on your risk level.

Ways to generate income: use as a high-yield savings account or choose SSF/RMF funds for tax deductions.

4. ETFs – Exchange-Traded Funds

Exchange Traded Fund (ETF) is a type of index fund traded on the stock exchange like stocks, with real-time prices and requiring less capital.

Example: KFUSINDX is a Thai ETF that invests in stocks according to the S&P 500 index of the US, allowing you to “own” the entire US stock market without selecting individual stocks.

Income sources: capital gains from price differences and dividends from stocks in the index.

5. Certificates of Deposit (CD) – High security, fixed returns

CDs are deposits made for a specified period (from several months to several years), offering higher interest rates than regular savings accounts.

Trade-offs include: inability to withdraw early without penalty, and fixed returns as specified from the start.

6. Retirement Plans – Preparing for a happy post-work life

The goal is to have enough money to live on after retirement. You need to calculate how much you will need.

Simple formula: Required amount = (monthly expenses × 70% × 12 months) × number of years after retirement

Example: Person A, aged 35, plans to retire at 60 (in 25 years), and expects to live another 20 years. Current expenses are 30,000 THB/month. You will need approximately 30,000 × 70% × 12 × 20 ≈ 5 million THB.

7. Options ( – Calculated betting

Options give the right to buy )Call( or sell )Put( an asset in the future at an agreed price. The risk is high, but the profit potential is enormous.

It is recommended that beginners stay away from these instruments until they have sufficient knowledge.

) 8. Annuities ### – Receive steady payments

Annuities are contracts for periodic payments, such as mortgage payments, car loans, or monthly savings.

They are used for long-term financial planning and calculating future value of money.

( 9. Derivatives ) – Secret profit tools

Derivatives are financial contracts based on underlying assets ###stocks, indices, commodity prices(, traded on TFEX )Thailand Futures Exchange(.

They can generate profits in both rising and falling markets, suitable for experienced traders with knowledge.

) 10. Commodities ( – Investing in nature

Investing in energy, metals, and agricultural products such as oil, gold, rice, and fruits.

Example: When OPEC decides to cut oil production, the price of WTI rises from 80 USD to 83 USD.

Advantages: diversification, inflation protection
Disadvantages: high volatility, approximately twice as volatile as stocks and four times as volatile as bonds

) 11. Diversified Investment – Don’t put all eggs in one basket

Combine various types of investments to reduce risk and increase income opportunities.

Steps for beginners who want to start investing

Set goals: What do you want to invest for? Extra income, retirement savings, or capital growth?

Understand your risk tolerance: Younger people can take more risks than those nearing retirement.

Learn and study: Read books, articles, follow financial news. No need to rush.

Choose a platform: That you trust and is well-regulated.

Try with small amounts or use a demo account before investing real money.

Monitor and adjust: Regularly review your investment results. Not daily, but consistently.

Important reminders for investors

🔸 Know the assets you invest in: Never invest in something you don’t understand.

🔸 Diversify your investments: Don’t put all your money into one asset class.

🔸 Control your emotions: Avoid impulsive decisions, as markets are volatile.

🔸 Have a backup plan: For when markets don’t go as expected.

🔸 Think long-term: Good investments often yield results over the long run, not overnight.

🔸 Consult professionals: If unsure, seek advice from financial advisors.

Summary: How many types of investments are there and how to choose

There are many ways to invest, and each method suits different individuals depending on their knowledge, goals, risk level, and investment horizon.

The key is to choose what fits you best. Don’t follow friends or others’ advice blindly. The more you understand about your chosen assets, the better your chances of generating steady income and minimizing losses.

Start today by understanding yourself first, then select the investment channels that suit you most.