Investment is an art and everyone whether Young or Old needs to learn this art very early in their lives.
I agree all of us can’t become Warren Buffet or George Soros but surely through the right investment plan, we can generate enough money so that we don’t run out of it in our lives.
If you don’t start investing Sooner or Later you will Run out of Money. So, it’s better to start Investing Right NOW.
As Popularly Said by Warren Buffet:
“Never Depend on Single Income, Make Investment to Create a Second Source”
So, If you too have just one Source of income then you should start investing to create your second Income source.
Investment can help you double, triple and even quadruple your money in a very short period of time. Through investment, you can grow your money exponentially unlike savings where you get almost nothing.
So instead of wasting your money on foolish things you better invest it in the right places.
Keep in Mind:
If your risk appetite is more then returns will be higher. If it is less then return will also be lower.
It is very simple:
High Risk = High Return,
Low Risk = Low Return.
In this article, we tell you different ways to invest your money wisely depending upon your risk appetite. Below we’ve listed down 10 best ways to invest your money in India depending upon the risk Factors involved in it.
10 Best Ways to Invest Money in India 2019
A. Low-Risk Investment
Let us start with low investment ideas where risk is very LOW but the return is not more 7% in a year. If you want to play safe then these are the best investment options for you.
1. Bank – Saving Accounts or Fixed Deposits
There are banks which are giving over 8% returns yearly on fixed deposits. Certain new private banks are willing to give even more.
You can absolutely feel free to deposit your money in any well-known bank. Before you open an account you will be told about the interest rates upfront without any hidden costs.
Although the returns are very low but the money is absolutely safe and you can recover it anytime. Fixed deposit is one of the most common ways to invest money. You don’t have to be a financial genius to do it.
If you don’t want to take any risk then go for fixed deposits.
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2. Provident Fund
Provident fund is another safe way to invest your money. The returns are not that outstanding but still better than Fixed Deposit.
A certain percentage (it is 12%) of your salary is deducted every month and added to the EPF scheme.
The minimum waiting period for withdrawals is 5 years. No other form of investment could match the provident fund returns when it comes to low-risk investment.
Every salaried person must contribute to PF.
3. Life Insurance
Life insurance is perhaps the most over-heard term. You might know about this as it is one of the popular forms of investment other than FD and PF.
If you don’t find a way to invest your money then investing in life insurance is always an option.
Here, money that you invest is called annuities. You buy an insurance plan from a company and you get back your money at a certain period of time in small increments called annuities.
Your nominee will get this money in case of your death.
Today there are many life insurance plans offered not just by private companies but also by the government. Unlike 10 years back today, life insurance has become so affordable that even an average person can get insured.
So these were the low-risk investment ideas with very limited returns.
B. Medium Risk Investment
Medium Risk Investment opportunities give you a higher return than FDs and PFs at 10% to 12%. However, the risk factor is slightly higher than low-risk investment ideas. So I would Suggest you do your research before investing.
4. Mutual Fund
You can start with SIP (Systematic Investment Plan) and invest some of your money in the mutual funds.
There are hundreds of mutual fund plans available in the market and you can choose any one of them depending upon return rate and your risk appetite.
You don’t have to worry about managing stocks because the fund managers of the particular bank are going to handle your money.
You can easily expect 12% to 15% in return yearly.
Government agencies as well as private companies issues bonds. Investing in bonds involves pretty low risk.
Investors earn money through fixed interest rates.
The most secured bond investment would be notes or treasury bonds issued by the government. Initially, they might have less value but in long run, they generate high profits.
If you have small children then you can start investing in bonds as they grow you can allow your money to increase and by the time they are adults you can cash out your investments for their education.
6. Properties – Real Estate
Investing in properties like real estate is a very popular form of investment but here you need a very big investment even for buying a single property.
If you know about a particular location and have an insight that after a few years this particular location would be of high commercial value then you can invest in that property.
Properties are a very stable investment. Real estate could be a very lucrative business if you apply your brain.
You have to make the right decision at the right time while you are purchasing a property then you can sell it when demand rises.
7. Metals – Gold, Silver and Bronze
In India, every household has some amount of gold and silver. The value of metals like gold or silver soars when the value of other investment drops.
Purchasing gold bullion is one of the safest & most promising investments. Gold has gone up almost 2.5 times in last 5 years.
There may be risk involved to keep lots of gold at home. It’s always better to keep the gold in the bank lockers.
You can even buy the gold in virtual form if you don’t want this physically.
8. Businesses and Joint Ventures
Investing in a small business is also a great idea especially if the business is owned by you. Here is a list of 50 small business ideas, I am sure you will like at least one business idea where you can invest your money in.
If you are planning to start a new business then, you could always invest some money in it. After a few years, if you are able to turn your business around then you could get high returns.
But if you think you can’t start your own business then you can invest your money into startups started by someone else. If you find the prospects of the startup are great then it is worthwhile to invest some money for higher returns.
C. High-Risk Investment
High-risk investment ideas can give you returns of over 20% to 40% in a year. And the only stock market can you give you such returns.
PMS or Portfolio Management Service is just like Mutual Fund with a small difference. PMS gives you higher return with the higher risk involved.
PMS can give you return up to 20% in a year. Here also your fund is managed by experienced fund managers of a particular PMS.
However, PMS is not for everyone because minimum money that you can invest is around Rs 25 Lacs. Some PMS only accepts Rs 50 Lacs minimum.
If you are willing to risk for higher returns then go for PMS. You don’t have to manage your stocks the PMS will do it for you.
There are certain stocks that can give you return up to 500% to 800% in a year. Multibagger stocks can give you even 1000%.
However, trading or investing in stocks is not for amateurs and only for experienced investors and traders.
Here you will manage your own portfolio, unlike PMS where others will do it. So first you have to learn about the market and then start investing money in stocks of the large-cap blue-chip companies.
In Forex trading you trade currencies instead of stocks. You can make a lot of money if you know to do the right way.
Before you start investing in share market do remember, although returns are great but only experienced individuals with in-depth knowledge of share market should invest money in share markets.
So these were few ways to invest money depending upon your risk appetite.
Also if you want to make passive income or make money online then you should definitely Read below Guides.
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