“Investing is important” is only half the truth. Investing rightly and timely is more important as in today’s world you wouldn’t even recognize where all of your hard-earned money went. You work hard for your money so make sure your money gives you its worth. Money lying idly in your wallet is also money that is losing its value. Make your money get you good returns, but it will not be able to do so on its own. You need to invest rightly for that, using your own mind.
Investing In Stocks
Stocks are often also known as shares of the company and hence, are subject to market risks as well. Investing in stocks might not be for everyone as it requires a certain amount of market knowledge and also because there are no fixed or guaranteed returns on your investment. The stock prices fluctuate as per the demand and supply workings.
Primarily, it is not the company’s performance that determines and fluctuates the prices but more that of the reaction of the investors to the performance or changes. However, it does look promising when there is data to ack that over considerably long periods, they do deliver high returns comparatively.
Investing in Mutual Funds
Mutual funds are a collective investment and are managed by a single manager who pools the money from various people and then invests them at different places in order to generate returns on it. It is not a high-risk investment but can be considered a medium risk as the returns are hugely dependant on the fund manager and his knowledge and skill. You can make domestic as well as international investments through this.
Investing In Fixed Deposits
Fixed deposits are often termed as a low-risk investment as it is not affected by the stock market and its movements. The returns are assured and at fixed time intervals and there is no risk factor that you need to bear involved in the investment. However, for you to gain a substantial amount of returns, you need to lock in your investment to gain them. This investment option is highly convenient and also very flexible.
National Pension System
When you are investing in an NPS or a National Pension Scheme, what you are actually doing is a long-term investment for retirement. It has become easier as the minimum annual limit keeps getting revised and lowered time and again. So essentially investing in an NPS is a mixture of a lot of things like FD, equity, bonds, and more. You also get to decide the amount of your money that you want to invest in equities through this.
Investing In Real Estate
People do not like to consider houses in which they live as investments however if you buy one apart from the one you live in, you can definitely term it as a proud investment. Say, for example, if you buy residential properties in Vadodara but live in Anand, you can give that property away for rent. You can generate a continuous flow of income regularly.
Investing is an essential tool for wealth creation and maintenance as it helps as a remedy against inflation and helps to make stable your future. Your investments should be as per your personal financial goals and also be as per your risk tolerance.
