It is important to know all about the different investment avenues before you choose one place to put all your money in. This article lists out seven smart investing tips to help you to understand where to invest your money.

The stock market
The first smart investment tip is to invest in the stock market to grow your money and accumulate wealth. When you buy stocks or mutual funds, you have a great chance of earning high returns and becoming a millionaire.

The stock market is highly volatile, and it is important for you to understand the market and be informed. You should invest in stocks only if you can follow the market regularly. Otherwise, you could end up with a dud stock and lose your money as it is very risky.

Mutual funds are better options as you invest in a fund run by professionals. The risk is lesser in this case, provided you invest in the right fund. Some research is required before investing, along with tracking the performance of your investments regularly.

Savings accounts
This is one of the smartest investment tips to invest your money safely. It is risk-free, and there is no chance of losing your money, but the returns on the investment are very poor. You can keep money in your savings account as a backup to be used during emergencies. Don’t rely on the interest you earn on it for your future, unless you have a huge sum of money to invest.

Bonds
Bonds are debt instruments, which means you are lending money when you invest your money in a bond. Government bonds are safe, but they would not give you the returns that you need to create wealth.

You need to invest in bonds for safety. A major chunk of your money should go in stocks and mutual funds, and the rest should go in safer investments like bonds. While Treasury bonds are safe, corporate bonds present a slight risk with higher returns. You can consider this option as it is safer in comparison to investing in the stock market.

401(k)
Your 401(k) retirement account is also an investment. Start investing early, and if your employer matches the money you put in your account, you can get decent savings for your future.

Due to the tax benefits, 401(k) is a good way to save money for the future. Another smart investment tip is to ensure that you have a 401(k) account the moment you start working.

Investment Retirement Account (IRA)
Apart from 401(k), a smart investment tip is to go for an IRA. This is an individual account and is not sponsored by your employer. It is a good way to save more money for your retirement.

Commodities
You can also invest in commodities like gold and silver as their value usually increases. If you have earned extra money, you can consider investing in commodities.

Real estate
This is a good investment avenue, as real estate prices are always going up. The only downside to this investment is that you need a big sum of money to invest in real estate.