We earn money and wish to save it for our future. If you will keep it in your bank account then you will not get enough rate of interest. Do not invest your money any fake money making plans/schemes. With the continuation of my previous article "Do You Also Want to Earn Money Quickly???" What are the best investments to make money? Here are best options/tips to Invest your money so that it would be safe and you can make some profit on the investment.
1. Systematic investment account/plans
It allows investors invest small amounts periodically instead of lump sums. The frequency of investment is usually weekly, monthly or quarterly. You can choose as per your convenient. It gives good rate of return in long term.2. Mutual funds investment
Mutual funds are subject to market risk so need to read documents carefully before investing. In which kind of investment you should invest it depends upon your requirement and risk taking capability. There are mainly four kinds of mutual funds investments are available with their objectives.Debt fund: These funds invest in fixed-income securities. Debt funds are typically low-risk funds.
Equity fund: These are funds that invest exclusively in the stocks of domestic companies listed on stock exchanges. These are categorized as high-risk funds. If you can’t take high risk then you should not invest in the Equity. More risk more profit it the marketing strategy. But investor should invest carefully. There are tax benefits associated with Mutual Funds. You need to invest in Equity Linked Savings Schemes (ELSS) of Mutual Funds for the it.
Money market fund: These are mainly meant for investors looking for easy liquidity and returns in the short-term. These are low risk funds and if you need money then you can liquidate it. These funds invest in money market instruments such as Treasury bills (T-Bills), Commercial Papers (CPs), Repurchase Agreements (Repo) and government securities. These are also called low-risk funds.
Hybrid or balanced fund: These funds invest in both fixed-income securities (debt) and stocks (equities) so these are called balanced funds as it is mixup of both fixed and Equity.
3. Unit Linked Insurance Plans (ULIPs)
There are some Insurance plans available which invests your money in debt and equities markets. Investment returns linked with the sharemarket and it calculate by net asset value (NAV). ULIPs provides options to invest your money to debt fund or equity fund. It also covers life insurance of the investor.4. Bonds
Typically corporate or governmental entities raise money by issuing bonds. These are available as individual bonds or exchange-traded fund [ETF / ETF Gold]. You can purchase it from your share broker or from online. Maturity date will be mentioned on the bond. Debt holders [bondholders] gets interest every year on it and original amount at the end of the maturity.5. Investment in metals
It was also a good way of investing your money. The value of metals rises when other investment values like stock market drops. But you need to keep it safe. Now a days you can purchase gold in soft form called e-Gold. It will be keep in your investment account, you can see online price and sale it any time.6. Investment in properties
Investing in real estate is another popular type of investment. I would suggest to do real estate investment by checking locations and verification of papers [authenticity of papers of the property]. You can purchase homes/shops. You can also give at rent and after some days sell it at a higher price.7. Public Provident Fund (PPF)
If you are in job then your company automatically deduct PPF from your salary. You can also invest more in the PPF. You can open an another account to deposit flexible amount in this account. PPF contribution is eligible for tax deductions under Section 80C of the Income Tax Act.8. Investment in stock market
If you are having high risk taking capability then you can directly invest in the share market. There are many online stock market trading websites to do share trading. You need to open a DP account [brokerage account] with them. You can buy/sell stocks online with some tips/advices provided by your broker.
9. Bank deposits
You can open a bank account to invest in the fix deposit. It is also called traditional investments. These are safe kind of investments but rate of return will be quite low.
10. Post office saving schemes
In the post office also there are many traditional saving plans available with low risk factor. Like in the banks fixed deposits here are also interest rates are quite low. There are many retirement plans available in which after one time investment you can get regular income on retirement.
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All the Best!
