Keeping your money in the bank has just one benefit: your money remains safe. But, as far as interests are concerned, the interest rates offered by banks are extremely low. So, most people prefer to invest their money into businesses to make some profit. While doing so, the priority is always to keep the principal intact and then make as much profit as possible.
If you want both high returns and low risks from your investments, it is possible only in an imaginary world. The greater the risk, the higher is the profit. So, here are some of the best places to invest money and fulfill your financial goals:
Best investment avenues to gain profit:
- Direct equity- Stock market is volatile and therefore, may people do not invest in it as returns are not guaranteed. Moreover, it is also difficult to select the right stock. Equally important is timing the entry and the exit to avoid making a loss. Despite all these factors, you can get amazing returns as opposed to other markets over a long period of time.
- Gold- If you have gold jewelry, it is also one type of investment that can save your back in tough times. You can also own paper gold. Investing in paper gold is always cost-effective and you can do it easily via gold ETFs. You can even invest in it through gold mutual funds.
- Equity based mutual funds- Most people invest in mutual funds these days. The returns primarily depend on the ability of the manager to generate income. Exchange-traded funds and index funds are two passively-monitored funds. The categorization of equity schemes are done based on market capitalization. Another thing to consider is whether the funds are international or domestic.
- Fixed deposits- A fixed deposit in a bank is a safer option than mutual funds or equity funds. The rate of interest applicable is added to the candidate’s income.
- Retirement plans- Investing in a good retirement plan is mandatory to secure your old age. So, every month a certain amount of your income should got to your retirement account. There are several schemes offered by the government and workplaces in this regard.
- Real estate- If you have your own house, it is meant for self-consumption and not considered an investment. But, if you have a second property and you do not plan to live in it, it is a potential investment. In this case, the property’s location is the deciding factor of its worth. However, as opposed to other investment areas, real estate is extremely illiquid.
Some of the investment options mentioned above can be classified as fixed income while the rest of them depend on the financial market. Both market-linked and fixed income investments have a significant role to play in the entire process of creation of wealth. Investments that are market linked offer high returns and are risky. Fixed incomes preserve your accumulated wealth and make profits gradually. So, we suggest you take judicious steps keeping taxation, time horizon and risk factors in mind.