June 5, 2017
There are a lot of reasons why people choose to invest their surplus money. Some do it for the financial security whereas some do it so they can have the money to purchase whatever it is they want to. So if you have some surplus money or if you have recently got a raise, how will you choose to spend this money will you invest it or would you rather use it to buy something that you wanted.
It is a common belief that you need to work a lot in order to save a lot of money. But that’s not the truth. You need to think wisely and invest your money at the right time to get profitable returns. The idea of investment itself gives a relief that the money invested is secured. Especially for the ones who are investing for the first time. Everyone wishes to have a good return irrespective of the amount of money they invest.
Getting a higher rate of interest on FD investments can be great as you can get closer towards your goals. But the risk involvement also increases as you get higher interest returns. If you are close to your retirement the risk involved is low. But in case if there is a drop in the market rate, it can be extremely risky for you.Since there are various investment options available in India like Fixed deposit, bonds, and even real estate. Find out which option is better:
- Fixed deposit: Fixed deposits can be the best option when it comes to investments. Bank fixed deposits are the easiest and a commonly preferred way to save some funds in India. Fixed deposits are measured as a safer option as opposed to the stock market and mutual funds. Term deposits can be of two types: fixed deposits and recurring deposits.
Fixed deposits are a onetime investment option where you will devote all your funds at a single time. If you opt for recurring deposits, you will have to invest your funds regularly over a period of time. The procedure of the fixed deposit is very easy and it is considered extremely secure.
- Mutual funds or bonds: When you are talking about mutual fund investment the first thing that comes to mind is Systematic Investment Plan (SIP). In SIP the installments on mutual fund investments are for several months or years. But instead, you can also invest in a lump sum amount.
Mutual funds are highly volatile in nature and they are easily affected by how volatile the market is. You need to figure out the right time to invest in the market and look for the opportunities that give you maximum returns. You need to make sure you don’t invest at a wrong time as you can face a loss too.
- Real estate: Real estate is fast becoming one of the top sectors in India. If you have surplus money that you want to invest, you can invest in real estate. A real estate is a good option when it comes to investing for a long term. The real estate prices change every 6 months in India and even if you invest for a year or two, you will definitely good returns. But you also need to keep in mind that the real estate market can be affected by various things like the recent demonetization drive in India. No matter where you choose to invest your hard-earned, make sure that you do proper research before doing so. There are a lot of people who look to scamming us and we need to secure ourselves against such people.