8 Places To Invest And Let Your Money Grow
In case, if you are a newbie confused about where to invest, let’s explore some safe channels to invest your money.
- Mutual Funds: Being an amateur investor, it is advisable to invest in mutual funds as they provide decent returns on investment at relatively low risk. Available in 3 different categories, namely debt funds, hybrid funds and equity-oriented funds, the SIPs plan of MF allows its users to invest an amount as low as Rs.500.
- Fixed Deposits: If you are looking forward to a year-long investment, then Fixed Deposit is your best option. With no risk and a fair interest rate, FD is the most hassle-free investment option that is offered by banks and post offices.
- Public Provident Fund: Preferred by salaried individuals, Public Provident Fund offers tax-free returns and
a relatively higher interest rate as compared to your regular bank Fixed Deposits. - Real Estate: Commercial real estate generally offers returns in the form of rental income. However, being on a higher risk side, real estate investment requires you to have a thorough analysis of a variety of factors like property location, quality, legal aspects and many more.
- Recurring Deposits: If you prefer to save periodically and double up your money, then Recurring Deposits need to be your investment channel. Fostering a decent level of interest, RDs are not subjected to any market risks and are considered to be among the safest investment options.
- Bonds: Owing to the priority of debts (bonds) over equities, bond investments are known for their predictable returns on investments and relatively low risks. Thus, if you wish to have steady incomes, then go ahead with bond investments.
- Gold: Revered to be the precious investment channel, gold investment is relatively safer as it has the advantage of easy liquidity and risk diversification. Additionally, in times of inflation, gold has relatively turned out to be a better investment as compared to the debts and stocks.
- Stocks: Stock investments require expertise and knowledge as this investment is subjected to high market risks. However, once you master the art of stocks, this investment can bring in abundant long term returns in the form of dividends. Even if you’re just starting to invest in stocks and investments it’s worth checking Motley fool vs seeking alpha to gain more knowledge on how to diversify your portfolio and make a sound investment!
While there are many options readily available, try to refrain from putting all your money in a single investment channel. As the market volatility can easily hamper your investments. Perhaps, it’s always better to play safe by investing on a piecemeal basis in a variety of investment channels.
_______
