While savings play an important role in our lives, investment has an equally important stake. Savings is that part of our income that we set aside for emergencies while we opt for investment plans to make our hard-earned money grow. Every individual has some investment goals for which they can take a certain level of risk to maximize their wealth within a short period.
As there are a large number of options available in the market, settling down to one becomes a tedious task. However, it is important that while choosing, one must have a clear idea of the major investment options available in the market.
There are several ways one can choose to invest their money to make the money work and grow. Here are some of the most sought-after investment options that are available in the market.
Mutual funds have become popular over time due to its ease in terms of the investment process. There are several official websites and mobile apps available that help you find a suitable fund house in just a few clicks. One can choose among growth funds, debt funds and tax-saving funds as per the risk profile and investment goals.
In case you do not want to invest a lump sum amount, you can invest a smaller amount on a monthly basis via Systematic Investment Plans (SIPs), that can fetch a better return than the regular recurring deposits. You can start a SIP with an investment as low as Rs 500 per month.
In the stock market, you can own a small portion of a company and the company shares a part of its profit every year in the form of a dividend. As the company grows, the value of the shares increase and one can sell the shares for a profit. However, depending on the company’s performance and market sentiments, the share prices may go down as well. This makes it a bit of risky investment option, and hence one needs to do his homework well before investing.
Insurances are the most comprehensive investment option. One can opt for life insurance, term insurance, health insurance, Unit Linked Insurance plan (ULIP) or various insurance plans available in the market. It is a smart mode of investment that provides security and assurance against the uncertainties of life. As we have become digitally equipped now, one can surf through the insurance schemes to find out the Best Term Insurance Plan suitable for him. Life insurance and term insurance have tax benefits and thus, can be considered as tax-saving investments.
Gold is the oldest and evergreen form of investment due to its regular hike in value. However, the investment in case of physical gold (gold jewelry, gold bars etc.) is now accompanied by investment in digital gold, gold ETF, gold mutual fund etc. Due to the constant rise in the price of gold, this investment option can fetch a good return in a shorter period.
RBI Taxable Bond
The bonds issued by RBI at the price of Rs. 100 can be bought by common people. A “certificate of holding” is provided as a proof of investment to the investors of RBI taxable bond. It has a tenure of seven years and a return rate of 7.75%. This is the less risky and secure form of investment.
Real Estate Investment
Due to the fast growth in the real estate sector, investing in real estate is one of the safest investment options. The prospect of this sector is lucrative and promises a higher rate of return in the future. One can buy a flat or plot today and see the value of the property grow within six months. Real estate investment has a very low risk involved and works as an asset which can fetch a huge return over a long period of time.
These are the few popular modes of investment options that can help you accumulate wealth. Investment plans are important for financial security as well as achieving investment objectives. It is essential to set an investment plan as per the personal requirements. One should consider his earning, spending, risk profile and best suitable investment option depending on the volatility of the option.