Investments are an essential aspect for a person to live a better life financially. It’s also important to know about the best investment option so that you can make the most out of your money. Still, many people in India have lacked financial knowledge due to which they suffer a lot to Manage Finances. Many people sometimes also fall into a debt-trap which affects their lifestyles too.
Some people still invest their money in a traditional way such as investing money in FDs, buying properties, and investing in gold which is a good thing but with the change of time, there is some new and better investment option available some of them may give high return but low liquidity as well as some of them, give high liquidity but low return having high risk. So it is up to you to select a better investment plan according to your income, financial objective, age, based on liquidity, your financial situation, and risk appetite.
Today we are gonna talk about some new as well as some traditional investments options a mango person has:
1. Equity Investment
An investment in shares is a risky option because of the volatility and risk factor associated with the market but these shares have huge potential as well many people become rich by investing in these shares but one has to make sure while purchasing it you should first do the fundamental and technical analysis because so many people wealth too here.
2. Bonds and Debentures
This is also a way of raising capital by companies but this investment requires huge capital and a long maturity period such as 10 or 15 years but it is less risky as compared to the above one.
3. Mutual Funds
These days mutual funds are become quite popular due to their high return and less risk as compared to equity shares because it managed by investment professionals. mutual funds have less maturity period as per your financial goals and your money could be invested in stocks, bonds, gold, or other investment instruments by your fund manager but this option has risk too (i.e. market risk) as your return could be affected by the market condition.
4.Bank Fixed Deposits or FDs
Well, this is the traditional investment option as you can invest money in the form of FDs in a bank many people choose this option as it has lower risk but not so good return i.e. (fixed Return) and a fixed maturity period but people believed that their money can be safe in the bank only.
5.Public Provident Fund or PPF
This is a popular low-risk investment option for investors. It gives a fixed rate of interest which is given by the government and is compounded annually over the long term.
6. Real Estate
This is one of the most popular investment options for investors and many investors choose this option over others because of many reasons like if someone invests his money in buying real estate then he is creating some assets for him and real estate is an appreciation asset means its value doesn’t depreciate or decrease along with time but appreciate or decrease with the span of time and also a person can give his property on rent and earn some extra income and also this option has less risk but this option require more money than others and suitable for people having decent money and want to invest for long term.
Gold is the most traditional form of investment. People still tend to buy more gold in India .n addition to physical gold, It can be now bought via Exchange Traded Funds (ETFs) and Mutual Funds in electronic format.
Cryptocurrency such as Bitcoin & Ethereum doesn’t start as an investment option but starts as an alternative to traditional money. Now, not only general people but big institutions are also showing their interest in this cryptocurrency, particularly Bitcoin. To conclude, I would say that one should invest just 10-15% of their capital in this cryptocurrency. As it’s very risky in nature and you could probably lose your money if you did not invest it correctly
It is advisable to take the above factors into consideration. Create an investment plan to diversify your investments across various investments. In order to spread your risk and create a balanced portfolio of investments.
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