Why should I invest? The answer is so simple, to become rich right? I have seen many people who used to think Investments and savings are the same things. But the truth is investments and savings are the two parallel tracks of the train, that have one intersecting point and that is finical independence. Undoubtedly Saving is most important but this is just one part of the story. To build a sufficient fund for emergencies is the foremost reason for everyone behind savings. But savings are capable enough to meet your demands and full fill your dreams?, No! right. in this fast-moving world individual needs demand more, and savings aren’t enough to serve those. There are two ways to make money in this contemporary world either earn money by yourself or find some sustainable ways to grow your destiny in the form of investments. Here investment comes into the picture, investment is like a vehicle that has the power to take your money long. Though investments have a lot of potentials also we can not deny the fact that there is a slight risk over here but if one can invest wisely and choose accordingly the risk factor can be minimized. Now we have a clear picture of why we need to invest but the foremost question is where should I invest?
Where one should Invest?
If you have made your mind and understood the importance of investments then the next step is where should one invest? Here are some possible options you can take into count.
I am sure every one of you must have seen that Mutual fund Sahi hai! advertisement. Over the last few years, mutual funds seem to be gaining popularity among investors. What mutual funds exactly are and how do they work will be focused on. Mutual funds collected a pool of money from investors and invest that money in different forms of securities like bonds, stocks, and other assets. The best part about mutual funds is your money is handled and invested by a professional who takes care of your good returns.
SIP stands for systematic investment plan which is offered by mutual funds, but unlikely mutual funds in SIP investors get the flexibility of investment instead of investing lump sum amount SIP allows you to invest starting from as little as 100rupees. In addition to this, you can set your auto-debit on convenient dates.
The major reason why SIP is gaining popularity among investors is, you can invest in a disciplined manner without worrying about market ups and downs. As is offered by Mutual funds plans hence the investment is to be handled by a professional. In order to get wealthy end results, one should start early.
The stock market is one of the most familiar terms of investment also known as share market. Those were the days when investing in the stock market was meant to be a courageous thing, but the world is changing and people finding interest in investing in the stock market. Also, there are several platforms in the market that help you to invest. Yet there is a group of people who still finds it hectic and risky and choose to stay out of it. But the stock market isn’t that furious as it is colored, if one understands it better and invests wisely it can give you unexpected results. Let’s see how this market works- the stock market is nothing but a set of exchanges where the buying and selling of publicly held companies’ shares or stocks take place. Is also known as equities which represent fractional ownership in any Company. The stock market works well for both the parties like the company gets quick capital cost from this investor and in return investors get part profit.
Bonds are referred to as security sold by corporations to raise funds. More simply, we can say by selling bonds one can borrow money. Whereas bonds provide security to the purchasers of guaranteed repayment including interest. Some bonds also can get converted into stocks.
One of the most traditional ways of investment is real estate and most safe as well. When one talks about real estate investment the foremost thing that comes to mind is buying a home. Apart from this real estate investment has a lot of potential and scope as well. Real estate will work wonders der for you just need to understand basic factors like economics, risk, future growth, area in which you are investing.
This is also one of the most conventional forms of investment and is taken as the safest one. Each one of us used to invest in gold, considering gold price hikes in recent years gold is also a good investing option. Though there was an argument that is just a form of jewelry and doesn’t hold investing ability, in the modern economy, gold is one of the sustainable investing options seen in many investors’ portfolios.