Do you know in India actually 2 to 3% of people in doing investments in a proper manner?😱
Contents
What is Investment?
In simple words investment is something that generates an extra amount of income over a period of a long time.
Importance of Investment
- First of all, making an investment helps you to secure your future.
- If you want to retire at an early age you can start investing as soon as possible.
- You become emotionally intense in terms of spending your money.
- You become more financially literate to understand the game of money.
- You can achieve any goals of your life if you invest properly.
- If you have a good amount of investment you don’t have to worry about your living after post-retirement.
Things To Keep In Mind before Investment
The things which I am going to tell you are mandatory for you to do before you start your investment.
- Emergency Fund is important and advisable for everyone to have at least 6 to 12 months of an emergency fund before they start investing this is because if any chance you get stuck in your career you don’t have to stop your investment.
- Insurance is also important you are not God you don’t know what is going to happen tomorrow so do take insurance for your well-being.
Types of Investment
There are lots of investment options if you want you can go with your choice with your analysis with your command with your capital and I am telling you that this is not a recommendation I am just suggesting the option which you can do investment.
1. Fixed Deposit
Well, I had started with a fixed deposit but if you want to do an investment fixed deposit should be the last option on your list. There is any simple deposit one may get up to a 2 or 7% interest rate. After deducting the tax you will end up getting 2 to 3% or 4% depending upon your interest rate which does not beat the inflation rate in a country is a wiser option to go with this I don’t think so you can look to the next option if you want.
2. Mutual Funds
Mutual funds are not bad they are a pretty good option if you compare it with fixed deposit. Mutual funds can give you a return of 10 to 14% 17 to 18% it depends on the which you have invested in mutual fund equity mutual fund or hybrid mutual fund its totally depends on person to person and its pretty good option to go with the mutual fund because it can beat the inflation rate.
3. Real Estate
Real estate if you are a beginner who has a small amount to start with the investment you can’t do investment in real state because in real state you need at least a code amount of capital to begin might one can need up to 20 20 lacs starting price of the real estate so it’s not a good option for the beginner who has started there investment journey so for that this would be not right for them.
But yeah if you have a good amount of money in your account you can get started with a real statement usually you get 3 to 4% or sometimes 6% and their state depends on whether you do and tell income or you buy land apartment in real estate what things you are looking to get return whether from rental property and send it after 20 25 years so that lots of parameters to consider it’s good option real estate investment but only for those who have good amount too.
4. Bonds
In short if you belong to moderate risk taking capacity you can go with bonds bonds give you around it 8 to 10% it is good if you see a fixed deposit it is slightly higher than the fixed deposit and slightly lower than mutual fund it’s good. If you have to play moderate risk you can after this hearing you have to see that which bonds are you going to take whether corporate bonds or government wants it’s up to you you can go with anyone.
5.P2P Lending
Are you fear of land your money to your relatives your friends or any other one no problem I will solution for you if you have some spare amount of money for others wait for all that I am saying is that this is what we call peer-to-peer landing okay there are some lots of which and secure your payments are secured with them you can use that I have so that you can learn your money and you will get a good amount of money on that you can get up to 12%. But there are lots of terms and conditions to check once.
6. EPF
Employee provident fund asks your company whether they are providing EPF or not most of companies provide EPF. Friend easily gets up to 8.5% interest rate in EPF the best part of EPF is that you can get the advantage of tax under section 80c and it is also risk-free so you can easily invest in EPF.
7. PPF
If your company is not providing you EPF don’t worry there is another option for you which is provided a public provident fund which is provided by the government the returns are around 7%.
8. Gold
Gold is a quite good option for the investment you can easily get up to 10%. If you see the last 10 years’ CAGR it is around 10% in India.
Bonus
Investment on Self. No investment can give this much return as an investment on Self gives. You can get up to 10000 % more than that if you properly work on yourself.
Conclusion
Do read in detail this all was just brief about types of investment. Also once again I am saying this is not a recommendation I had just given a glimpse of investment options that’s it so that you can explore more options.