What Are The Best Ways to Invest Money?

Best Ways to Invest Money

Investing your money is as important as earning as investment helps you secure your life financially by letting you achieve your financial goals and helps you generate a parallel stream of income, wealth and to earn returns to beat inflation. Investors want to invest in the field from where they get sky-high returns that too as early as possible. They don’t even want to take the risk of losing the principal money, this is the only reason that people keep searching for the best investment opportunity through which they can double their money with minimum or no risk at all. But in reality, this is not possible as if a person wants to earn a higher profit he will have to take higher risk i.e, risks and returns are directly related, the higher the risk – the higher the profit; the lower the risk – the lower the profit. 

Some best ways to invest your money are:-

  • Insurance Plans

Insurance Plans are an excellent investment instrument that provides you with a steady source of income and it also serves as a financial cover to cover your family in case of any suffering or unfortunate premature death.

  • Mutual Funds

Mutual Funds are one of the most popular investments amongst beginners that offers you the advantage of investing indirectly into the stock market. When you are busy with your jobs and businesses, you can not get time to make any direct investment or to follow the stock market here’s where mutual funds come into play.

  • Tax Benefits

Some investment avenues offer tax benefits and you need to evaluate the trade off between the benefits of tax and the returns that you get when investing.

  • Fixed Deposits and small deposits

Fixed Deposits and small deposits are safe instruments providing moderate returns and they offer better liquidity and safety. These schemes are also good for beginners to earn a decent income in addition to the employee PF.

  • Public Provident Fund

PPF is a long tenure investment where the impact of compounding of tax-free interest is huge and as the interest earned and the principal invested amount is guaranteed, it is also a safer investment.

  • Direct equity

When investing in stocks, there is no guarantee of returns, it is difficult to pick up the right stock and timing your entry-exit is also not easy hence, the only silver lining is that is for a longer period and has been able to deliver higher than inflation-adjusted returns in equity.

  • National Pension System

National Pension System is a long term retirement that focuses on investment products. NPS is a mix of fixed deposits, corporate bonds, equity and government funds, based on your risk appetite you could easily decide how much of your money could be invested in equities through NPS.

  • Pradhan Mantri Vaya Vandana Yojana

This yojana is for the citizens who are 60 or above and offers them pension income that is payable monthly, quarterly, half-yearly or yearly at the time of maturity and if, in case of death of the senior citizen, it will be paid to the nominee.

  • Senior Citizens’ Saving Scheme

Senior Citizens’ Saving Scheme is the first choice of most retirees and it is a must-to-have investment opportunity that seniors should have. Once the investment is made, the interest rate will remain as it is till the date of maturity.

  • Real Estate

The second property that you buy could be termed as your investment. Investing in real estate is highly liquid and delivers returns in two ways i.e, rentals and appreciation.

  • Gold

Gold, when in the form of jewellery has its safety and high cost but for those who want to buy gold coins, there is still an option as nowadays many banks are selling gold coins, and by paper gold, you could own gold in an alternative way.

The benefits of the Investment Plans are as follows:-

  • Returns of investment can protect your loved ones.
  • An investment plan that is gold-based is a great way of saving money.
  • Investments not only provides an opportunity to accumulate wealth but also provides tax benefits.
  • The extensive range of investment plans offers flexibility to choose the investment option.
  • Investment plan dispenses mind blowing opportunity to create wealth.
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