5 Best Investments for Beginners According to Experts

3. Broader Market ETFs

More and more money managers and experts are recommending beginners to avoid investing in individual stocks and instead go for ETFs, index funds and broader market funds. If you put your money in the S&P 500 index, you are almost guaranteed to get a 6% to 7% return annually since that is the average return of the index adjusted for inflation. We could quote many experts and financial gurus who believe investing in broader market funds is one of the best ways to invest for beginners, but we decided to quote Warren Buffett who is also a big fan of this investing approach.

Talking to CNBC, the Oracle of Omaha advised people to consistently buy an S&P 500 low-cost index fund.

 “I think it’s the thing that makes the most sense practically all of the time,” Buffett said.

Buffett also said:

“The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying. American business is going to do fine over time, so you know the investment universe is going to do very well.”