How to Choose an Investment Channel: A Complete Guide for Beginners

2026-01-06 16:50:10

Why is investing important?

Many people avoid investing because they fear losses. But the truth is, what types of investments are there? Each channel has different levels of risk and returns. Sometimes, understanding the basics of various financial instruments can help you discover investment opportunities that suit your own situation.

Main categories of what investments are there

Investing today is more diverse than in the past, from stocks and bonds to mutual funds, ETFs, options, derivatives, commodities, and even retirement plans. Investors can build a portfolio according to their needs and risk tolerance.

1. Investing in stocks: past, present, and future

What are stocks?

Owning stocks means you are part of a company. Buying shares from the stock exchange is one of the most popular methods. Although the risk is higher than just saving, the potential returns are clearly attractive.

Two main strategies for trading stocks

Technical Approach ( This approach seeks profit from short-term price changes by analyzing chart patterns. For example, you buy Tesla )TSLA( at 200 USD per share, 100 shares. When the price rises to 270 USD, you can make a profit of 7,000 USD )100 shares × 70 USD(

Fundamental Approach ) This strategy focuses on analyzing the company’s performance. If the company has high profit growth, stock prices tend to increase long-term. Investors in this approach spend time reading news, tracking earnings, and studying financial ratios.

( Beginner steps

Learn the basics: Read about technical analysis and fundamental analysis
Plan your investment: Set goals, amount of money, and investment duration
Choose a broker: Find a securities company with reasonable fees
Practice: Use demo accounts before trading live. Many brokers offer trial accounts with virtual money

2. Bonds: steady income investment

) What are bonds?

Bonds are debt securities issued by governments, companies, or organizations. You receive fixed interest until the maturity date.

How to generate income from bonds

Returns come from two sources:

Coupon ###: Fixed amount paid periodically
Capital gains: Selling at a higher price than purchase

Example: Invest 1,000 THB in a 3-year bond with 5% annual interest. You will receive: annual interest of 50 THB + principal of 1,000 THB at maturity.

Steps for beginners

Learn about different types of bonds: long-term, short-term, government, corporate
Understand interest rates and their relation to risk
Choose bonds according to your acceptable risk level

3. Mutual funds: easy investing for everyone

( Why are mutual funds a popular choice?

Mutual funds pool money from many investors. The fund management company selects and manages the portfolio for you. The advantage is you can start investing with small amounts and diversify immediately.

) How to generate income

Growth in value: As the underlying assets increase, the fund’s value rises
Dividend payments: Some funds distribute dividends regularly
Tax benefits: Certain funds like SSF and RMF help reduce taxes

Basic investment tips

Study fund types: stocks, bonds, mixed, etc.
Choose based on your investment goals
Open an account with a bank or management company
Monitor performance and adjust your portfolio as needed

4. ETFs: index funds traded like stocks

What is an ETF?

Exchange-Traded Fund is an index mutual fund that can be traded on stock exchanges, such as the S&P 500 Index. Its price moves in real-time, like regular stocks.

How to generate income

Capital gains: Buy low, sell high
Dividends: If linked to stocks, dividends are possible

Example: Invest in an ETF tracking the S&P 500 in the US via funds like iShares Core S&P 500 ETF.

Beginner tips

Select ETFs aligned with your investment goals
Open an account with a trusted broker
Buy ETFs according to current exchange rates
Regularly monitor performance

5. Certificates of Deposit ###CDs###: safe investment

What is a CD?

A certificate of deposit is a financial asset with a fixed term. You lock in your money in exchange for higher interest than a regular savings account.

( How to earn

Fixed returns as specified. If you withdraw early, you may pay a penalty.

) Key features

Fixed term: from days, months, to years ###most common 6 months###
Fixed interest: varies by bank
Safety: considered one of the safest investments

6. Retirement plans: preparing for the future

Why plan for retirement?

Retirement plans help you accumulate funds for the end of your working life. Simple formula:

Money needed = annual expenses × number of years after retirement

( Example

Mr. A, age 35, wants to retire at 60 )another 25 years### and expects to live 20 years after retirement. Currently, he spends 30,000 THB/month. After retirement, estimated expenses are 21,000 THB/month ###252,000 THB/year(

Money needed = 252,000 × 20 = 5,040,000 THB

) How to prepare

Set retirement goals
Assess expenses
Choose investment methods (stocks, bonds, ETFs, mutual funds)

7. Options ###: for advanced investors

( What are options?

Options are financial contracts giving the right )but not obligation( to buy or sell an asset in the future. There are two types:

Call options: right to buy
Put options: right to sell

) How to make money

Example: On Feb 18, SET50 Index is at 930 points. Mr. A predicts it will rise, so he opens Long S50H21C950, one contract, premium 17.1 points ###pay 17.1 × 200 = 3,420 THB(

) For beginners

Learn terminology: Strike Price, Expiration Date, Premium
Study various strategies
Open an account with a broker offering options trading

8. Derivatives ###: tradable financial instruments

( What are derivatives?

Derivatives are financial contracts referencing other assets )such as futures, swaps### traded via TFEX.

( How to generate income

Investors can profit in both bullish and bearish markets by choosing the right options.

) For beginners

Study types: options, futures, swaps
Understand strategies like Covered Call, Protective Put
Open an account and practice

9. Annuities ###: steady income over the long term

( What are annuities?

Annuities are periodic payments, such as mortgage installments, car payments, or monthly savings.

) How to calculate future value

Example: Mr. A and Mr. B deposit 30,000 THB annually for education savings, with 3% annual return. After 17 years, how much will they have? ###compound interest###

( How to start

Understand types: Fixed, Variable, Indexed annuities
Study impact on retirement
Choose according to financial goals

10. Commodities ): investing in real resources

What are commodities?

Investing in energy, metals, and agricultural products with high global value.

How to make money

Typically traded on exchanges. Example: When OPEC reduces oil production from 22 million barrels to 15 million barrels per day, WTI prices rise from 80 USD to 83 USD.

( Advantages

Diversification: Low or negative correlation with stocks and bonds
Inflation hedge: Benefits from inflationary periods

) Disadvantages

High volatility: Twice as volatile as stocks, four times as bonds

11. Hybrid investments: diversification

What are hybrid investments?

Combining investments from multiple sources, such as stocks, bonds, real estate, to reduce risk and increase income opportunities.

( How to generate income

Invest in multiple assets simultaneously. Allocation should be based on risk control and your goals.

) How to start

Set objectives: Short-term, medium-term, or long-term
Assess risk: Choose appropriate mix
Monitor and adjust: Regularly review your portfolio

Essential knowledge before starting to invest

Before your first investment, consider:

🔸 Objectives: What are you investing for? Daily profit, retirement savings, or risk protection?

🔸 Risk tolerance: How much risk can you accept?

🔸 Expenses and fees: Study trading fees and other costs

🔸 Learn and research: Read books, articles, and reports

🔸 Risk management: Have a clear risk management plan

🔸 Time horizon: How long do you want to invest?

🔸 Review regularly: Check performance periodically

🔸 Seek advice: If unsure, consult a financial advisor

Summary

What are the types of investments? Not just stocks and bonds. Today, investors have many options, including mutual funds, ETFs, options, derivatives, commodities, and retirement plans.

The importance of learning is that you can assess opportunities and risks appropriately. The more knowledge you have, the better you can plan your investments effectively and diversify into other channels wisely.

Investing is not difficult if you understand what types of investments are there and know yourself as an investor.

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