Some Of The Best Investment Methods To Know


Indian financial condition has developed much. Different methods are available for the investment of money.We are really become confuse if we made an attempt to select the best method among them. This article introduces some best methods for the investment of money. It also gives some valuable regulations which one should keep in before selecting the mode of investment.

Importance of investment


Indian economical status has developed much. Salary of the individual is increased much than in the past. As per the increase in salary habit of investment also increased. People depend on different investment methods for a better future. Each one select suitable methods according to their plans. To buy a house, to buy a car, Education of children, retirement plan etc are the different plans of people. Therefore we should select the investment method which is more suitable for the fulfillment of our ambitions. Despite this investment becomes un-useful if returns would not get at the proper time for the fulfillment of our wishes. Therefore time also get its significance in investment. For example let us assume that if you are planning to buy a car the investment should be in such a way that loan can be paid by E.M.I return. That is a certain amount will be get as monthly plan. In such cases investment in fixed deposit is more advantages. Because the amount which is equal to pay the loan of the car will be get from the fixed investment.

Different types of investment methods


It is a better idea that the depositor can fulfill his wishes through investment. But the depositor could have a clear idea about the needs of future and time. Along with that the depositor should be aware of the risk, returns and the initial amount of the deposit. Even though the return are less bank deposits are far better than in secure. There are different types of investment methods.

Fixed deposits


Fixed deposits are secure deposits in which we can deposit with an aware of return amount. We have to pay attention in a preplanned plan by considering the salary in fixed deposits. We could plan the future demands connected to fixed deposit. It is the most suitable plan who have a desire to buy car or two-wheeler. In such cases, investment should be arranged in such a way that an amount which is equal to loan installment will be get as return. Despite this depositor can repay the whole amount with the amount of fixed deposit. If those who are ready to take more risk can invest in floating rate fixed deposit. Floating deposit has great possibilities while comparing to fixed rates in the present economic condition.

Recurring deposits


Recurring deposits are best investment schemes in which amount will get together at maturity by depositing small amounts in frequent levels for a fixed term. Recurring deposit is comparatively a good invest scheme for women. Recurring deposits will give comparatively a good return since it gets an interest rate between 7.45% to 9%. Recurring deposit methods are available in all banks. The interest rate of recurring deposit will decrease if the depositor withdraws the amount before completing maturity. Usually recurring deposit will start from a maturity of 6 months to 120 month. Post office recurring deposit also a popular investment scheme. From 10 rupee onwards can deposit whatever money as multiples of five. The shortest term is five years.

Mutual funds


Mutual funds are become a must included investment scheme in portfolio investment method. Depositor can deposit frequently through systematic investment plan in mutual funds. It is not necessary to deposit a higher amount in a single installment itself. Through systematic investment plan of mutual fund can deposit 500 rupees onwards monthly. Risk is less while compared to the stock since mutual fund is deal with experts. Despite this the possibility of profit is higher among mutual funds. But we can't predict the amount of return. Therefore it can't be said that mutual fund is not at all suitable for time bounded necessaries.

Stock


While compared to fixed deposit equity funds give higher return. Even though a long term scheme equity deposits give higher amount than gold and real estate. It is a suitable method to fulfill as long term plans like to buy a plot to buy a car and retirement savings. It avoids the higher risk of deposit stock. Systematic investment plan is a most suitable method for those who are starting investment in stock market. Depositor can deposit a fixed amount like Depositor can invest a fixed amount like rupees 1000, 2000, 3000, 5000 through systematic investment plan for the future need in a stock selected by him. After five years higher return amount than other investment schemes will get from stock deposit.

Gold


Gold is a traditional investment method. Generally women have more attraction towards gold so that they may attracted to gold deposit easily. Higher return amount is the main attraction of gold investment. Gold can maintain its value at every financial conditions. Gold can purchase with an aim of long term investment. If the investment is for the marriage of children gold investment is most suitable. Gold coins of 24 carrot and chips can use for making ornaments. Otherwise we can sell the gold in order to use for marriage purposes.

Exchange traded funds


Exchange traded funds are comparatively a new investment scheme. Therefore the cannot achieve much popularity yet. While evaluating the performance of E.T.F for the last few days it can considered as one among the five best investment schemes. Like stock deposits, exchange traded funds also make profits in long term investments. Commodity exchange traded funds especially Gold Exchange Traded Funds make more achievements in India. Exchange traded funds are not at all make use properly among individual depositors yet.

Insurance


Insurance can be considered as just a method to insure. Though Insurance is also a best investment method, Experts told that we have to invest 10%of our profit in insurance schemes. Life health insurance policies are more suitable. Health insurance policy should take by considering the possibilities of diseases and its treatment. Life insurance policy should taken by considering retirement age. Along with insurance companies banks and post office provides insurance services.


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Comments

Author: Swagatika Pattanaik02 Sep 2016 Member Level: Gold   Points : 2

We earn money, spend and do savings some part for future ( when we will have no earning, we can spend from that savings). But do we know what is the exact amount we will need in future for our expenses? Most of the people are unaware about interest rate, how much growth should be there from their current earning, what is inflation report etc?
So in simple word just remember what ever we are earning we need little more money in future for maintaining the same life style. So we should invest smartly at right place for which our money will be in safe and will grow more than the inflation.

First of all analyses your earning and expense details.
What ever difference amount should be invest smartly.
Investment are of high risk, low risk and moderate risk, you choose according to your risk appetite, your money requirement, and your age, and finally your goal.
Suppose you do not want to take risk and you are near about retired age then do not go for stock or commodity trading which brings huge return for knowledgeable traders.
Invest some of your money for life insurance and health insurance so that in future if you face any kind of problem or medical issue then there will be no monetary problems.
Invest some of your money in stock market , equity based mutual funds ( if you are at age around 20-35).
Some of money should invest in postal and Government bonds ( which have less risk and low return). Keep some money in bank fixed deposit as well as keep some money in savings bank account for daily expenses and for emergency.
If you are having some extra savings or getting bonus then can invest in Gold and silver.
If you have some bulk money then go for a shop so that you can get some regular rent from there.



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