Ways to Start Investing Without Knowing Anything 

Anyone trying to start investing knows it can be a bit of a minefield – whether you’re a complete beginner or you’ve been investing for a while and want to take it to the next level. Myths about investing abound, and the truth is, there’s an entire world of investing out there that you probably don’t know about. The good news is that there are plenty of ways to start investing without having any experience or knowledge of what you’re doing. Whether you’re a complete beginner or a seasoned investor, there are plenty of ways to start investing that will help you grow your savings and give you the best chance of long-term financial success. According to Gallup’s most recent investor survey, roughly 61% of American adults own stock in some form — yet many still feel underprepared. With that in mind, let’s take a look at some common ways that you could start investing and explore the potential benefits.

Stocks
Stocks may not be for everyone, but there are plenty of ways to invest in stocks that will benefit from the growth of businesses. No matter your investment strategy, you can likely benefit from the stock market. Stocks can be bought and sold throughout the day on exchanges like the New York Stock Exchange (NYSE) and Nasdaq, making it a great way to gain exposure to different companies and industries. They can also be a great way to make regular savings, as you can buy shares in large companies that are doing well now and hold them for the long term. Platforms such as Robinhood, Fidelity, and Charles Schwab have made stock investing accessible to everyday investors, often with no trading commissions. In some cases, you can even purchase shares of small companies launching products or services and could see an upsurge in sales over the next few months. The Securities and Exchange Commission (SEC) recommends that new investors understand their risk tolerance before buying individual stocks.

Bonds
Bonds are investments that pay you back when interest is paid on a certain amount of money. While stocks can provide rapid income, bonds provide a steady, secure income with low risk. There are many different types of bonds, and the best way to go with them is through a bond fund. A bond fund will hold a variety of bonds from different companies, and as a result, it could provide a very safe and consistent source of income. U.S. Treasury bonds, for example, are backed by the full faith and credit of the federal government and are considered among the safest investments available, as noted by the U.S. Treasury Department. You can purchase bonds online through online brokerages like TD Ameritrade or SoFi Invest, but it’s a good idea to get in touch with a financial advisor if you’re not comfortable doing so. Bonds have a shorter life span than stocks, so make sure you have some financial planning before investing.

Mutual Funds
A mutual fund is an investment fund where you purchase shares equally invested in stocks and bonds. The best mutual funds are bought in a fund family so that you get representation from many different investment strategies. Mutual fund families offered by firms like Fidelity, Vanguard, and T. Rowe Price can be great ways to get exposure to various investment strategies and could provide a steady source of income for your investment portfolio. According to the Investment Company Institute (ICI), U.S. mutual fund assets totaled over $27 trillion in early 2026, reflecting their continued popularity among retail investors. You can generally purchase mutual funds online, but it’s a good idea to get in touch with a financial advisor if you’re not comfortable doing so. Like all other investments, mutual funds have a shorter life span than stocks, so make sure you have some financial planning in place before you invest.

Exchange-Traded Funds
An exchange-traded fund is an investment fund that trades like a stock. In essence, it’s a managed fund that you buy and sell throughout the day based on market conditions. Most ETFs are passive funds, meaning they don’t have an investment team managing their picks but instead rely on computer algorithms to make investment decisions. Popular ETFs like the SPDR S&P 500 ETF Trust (SPY) or Vanguard Total Stock Market ETF (VTI) allow investors to own a small piece of hundreds of companies at once. ETFs are great for people who don’t like managing their own money, as they allow you to save on human error and make sure you get a steady investment income from your investments. The average expense ratio for passive ETFs has fallen to as low as 0.03%, according to Morningstar’s ETF research, making them one of the most cost-efficient investment options available today. You can generally purchase ETFs online through online brokerage firms like Charles Schwab or SoFi Invest, but it’s good to get in touch with a financial advisor if you’re not comfortable doing so.

Real Estate Investment Trust
A real estate investment trust is an actively managed fund specializing in buying and selling real estate. Unlike other funds, which focus on a specific industry, a REIT fund is generally broad-based and can invest in various industries including commercial, residential, and industrial properties. REITs are great for people who want to maximize their potential earnings from one investment, as they provide steady, passive income from one source. By law, REITs must distribute at least 90% of their taxable income to shareholders as dividends, as required under rules established by the IRS and outlined by the National Association of Real Estate Investment Trusts (Nareit). You can generally purchase REITs online through online brokerage firms, but it’s good to get in touch with a financial advisor if you’re not comfortable doing so. REITs have a long life span, making them a good long-term investment and a tendency to provide regular income.

Money lending
If you’re looking to build wealth over time, a money lending business is a way to go. Traditional financial institutions like Chase, Wells Fargo, and Bank of America charge you interest whenever you borrow money. But a money lending business doesn’t charge you interest. Instead, they set you up with a loan that pays you interest. This is a cost-free way to get a loan and provide extra income. Peer-to-peer lending platforms operate under oversight guidelines from the Consumer Financial Protection Bureau (CFPB) and the SEC, offering some protections for participants, as detailed in CFPB guidance on peer-to-peer lending. You can also find money-lending businesses that provide consumer loans like mortgages and auto loans. Depending on your situation, you might want to consider both consumer and commercial loans.

Investing can be a fun, low-risk way to grow your savings and provide a long-term financial boost. There are plenty of ways to start investing, and it’s important to find the approach that works best for you. Stocks, bonds, and mutual funds provide a reliable source of income, while real estate investment trusts (REITs) provide a low-risk way to grow your investment portfolio. If you’re interested in the long-term, an ETF is the way. It provides predictable returns with low risk. On the other hand, money lending businesses provide cost-free loans with competitive interest rates. Investigating the investment strategy that works best for you is the first step to becoming a financial success.

Frequently Asked Questions

How do I start investing with no money or experience?

You can start investing with as little as $1 using fractional share platforms like Fidelity or Robinhood. Opening a brokerage account takes about 10 minutes, and many platforms offer guided portfolios for beginners. Starting small and investing consistently over time is more important than starting with a large sum.

What is the safest investment for a beginner?

For most beginners, U.S. Treasury bonds or FDIC-insured high-yield savings accounts are considered the safest options, as they carry virtually no default risk. Broad-market index ETFs, such as those tracking the S&P 500, are also widely recommended by financial advisors as a low-risk starting point for long-term investors.

What is the difference between a mutual fund and an ETF?

Both mutual funds and ETFs pool investor money into a diversified portfolio of assets. The key difference is that ETFs trade on exchanges throughout the day like stocks, while mutual funds are priced once per day after market close. ETFs typically have lower expense ratios, making them more cost-effective for most new investors.

How much money do I need to start investing in stocks?

Thanks to fractional shares, you can invest in major stocks with as little as $1 on platforms like Charles Schwab, SoFi Invest, or Robinhood. There is no universal minimum — many brokerages have eliminated account minimums entirely.

What is a REIT and how does it work for beginners?

A real estate investment trust (REIT) is a company that owns income-producing real estate, allowing everyday investors to earn dividends without directly owning property. REITs are required by law to pay out at least 90% of taxable income as dividends, making them attractive for passive income. They can be purchased through most standard brokerage accounts.

Are ETFs better than mutual funds for beginners?

ETFs are often considered better for beginners due to their lower minimum investments, lower expense ratios, and intraday trading flexibility. However, mutual funds may offer automatic investment features and no trading commissions, which can be useful for investors who prefer a set-it-and-forget-it approach. The best choice depends on your personal investing goals and timeline.

What is the role of the SEC when I start investing?

The Securities and Exchange Commission (SEC) is the primary federal regulator overseeing U.S. investment markets. It requires brokerages and fund companies to disclose key information so investors can make informed decisions. When you open a brokerage account, your broker is required to be registered with the SEC and FINRA, providing important consumer protections.

How does a bond fund differ from buying individual bonds?

A bond fund pools money from many investors to purchase a diversified collection of bonds, spreading risk across many issuers rather than concentrating it in one. Individual bonds have a fixed maturity date and pay a set interest rate, while bond funds fluctuate in value daily. For beginners, bond funds are generally easier to manage and more accessible than individual bond purchases.

Can I invest without a financial advisor?

Yes — many investors successfully manage their own portfolios using low-cost index funds and robo-advisors like Betterment or Wealthfront, which automate portfolio management for a small annual fee. A financial advisor is beneficial for complex situations such as tax planning, estate planning, or high-net-worth portfolios. For straightforward, long-term investing, self-directed accounts at major brokerages are a practical and affordable starting point.

What taxes do I need to consider when investing?

Investment gains are subject to capital gains tax — short-term gains (assets held under one year) are taxed as ordinary income, while long-term gains (held over one year) are taxed at lower rates of 0%, 15%, or 20% depending on your income. Dividends from REITs and stocks may also be taxable. Using tax-advantaged accounts like a Roth IRA or 401(k) can help minimize the tax burden on your investment growth.