Best Investment Options

 

When a man starts earning, he is at a crossroads, not aware of the best investment options.

He was not taught about saving and investing money while he was a student at college or

university. Even parents are not aware of the best investment options and rely on

traditional investment tools. I think this investment part should be added somewhere in

the curriculum.

If you are saving money from an early age, then you are getting a longer period to invest

and can take risks while investing money. Some investing tools, like putting money in the

The stock market is risky, but at the same time, it gives maximum returns. But if you are over

fifty, then you can't take risks as you need money after retirement. So investing from an

early age makes it easy.

People are not aware of the best investment options and later on, realize the mistakes.

You can invest a little money in all tools so that it gets diversified. You should not invest all

your money in one place or in one tool rather diversify it. It makes your money safe and

fetches good returns. Now I will discuss the best investment options below.

This is one of the best investment options for investing money. It has an SIP plan. It is called

Systematic Investment Plan. Some Experts have their own full form of SIP as Sleep-in

Peace. They later explain that you need not worry about your investment. Once you have

opened an account in that Fund Office, they require a check for the first time later on from the next

Money will be deducted automatically from your bank account.

Mutual funds have two options. One is regular, and the other is direct. When you are busy or do not

know much about mutual funds, then, the agent visits your home or at your workplace

and explains about funds and fills out the form. Then that will be a regular fund where NAV, i.e.

Net asset value is a little lower than direct fund. You should opt for direct funds. It will give

better returns over a long period compared to the regular fund.

These days, you can open an account online if you have an online banking facility. It will give you

the freedom to access your account statements online. The interface of these mutual funds is

user-friendly and easy to access. You can download apps available from the Play Store.

Some Categories of Mutual Funds

Multi-Cap Funds: Experts allocate money in Large Cap, Mid Cap, and

Small Cap Stocks. So it is less risky compared to other categories of

funds.

Large Cap Funds: Experts allocate money in only Large Cap Stocks.

So it is less risky compared to other categories of funds.

Large and Mid Cap Funds: Experts allocate money in only Large Cap

and Mid Cap Stocks So it is less risky compared to other categories of

funds.

Mid Cap Funds: Experts allocate money in only Mid Cap Stocks So it is

risky compared to other categories of funds.

Small Cap Funds: Experts allocate money to small-cap stocks. So it is

very risky compared to other categories of funds.

ELSS Funds: Experts allocate money in Large Cap, Mid Cap,and Small

Cap Funds. So it is less risky compared to other categories of funds. It is

basically an instrument for tax saving.

Sectoral Funds: Experts allocate money in particular sector stocks like

Banking, Health, Infrastructure, Information Technology, etc. So it is risky

compared to other categories of funds. Sector funds run phase-wise.

A fixed deposit or in short, it is called FD, is one of the best investment options.

instruments offered by banks and non-banking finance companies (NBFCs). In Fixed

Deposit: you have to invest a set amount for a particular time and get a fixed interest rate.

You are aware at the time of investing what interest rate you will get and how much

money you will receive at the time of maturity. So this is for those people who want a

secure way of generating money. This is the best investment option for an elderly person

or senior citizen who is not in a condition to take the risk.

Benefits of Fixed Deposits

Assured Returns

It assures you that whatever the problem lies with the economy or how the economy

performs, you need not have any fear or doubt as you will get the interest assured at the

time of submitting money for investment.

Surety at Maturity

The money put for investment depends on the time of investment. It can be annually or

for two, three or five years. The period is in your hands. The interest will be given after

the completion of tenure.

Faster Growth with Compound Interest

Compounding of money is magic, which helps in the growth of money. You get interest on

the amount invested. Then that interest adds to your previous amount and you will get

interest on the added amount. This helps accumulate your target amount.

Higher Rates for Senior Citizens

Some banks, especially government banks, offer Senior citizens more interest than the

common man. This special treatment is given as the government knows that he can't

work anymore, and that amount is his life's saving. He is dependent on that money.