How to Invest your money Safely and earn easy Returns
The term ‘investment’ is an umbrella term used to define all the assets or commodities that individuals acquire in their life to generate appreciation or income from Invest Your Money.
Appreciation refers to an increase in the value of that asset over time. When an individual purchases something as an investment, the intent is not to consume the commodity but rather to use it in the future to generate wealth.
However, it is a fact that investments that yield high returns with low risk do not exist, completely a myth. In reality, the risk is directly proportional to returns,e the more risk you take, the higher will be the returns and vice versa. Therefore, while choosing the avenue you want to invest in, you have to match your risk profile with the risks associated with the product. Some investments carry high risk but have the potential to generate higher inflation-adjusted returns than other assets. They are:
REAL ESTATE
Investment in real estate is still the most formidable alternative available to investors. With rising bank scams and unstable stock market prices, real estate is the favorite sector of investors with guaranteed returns and high growth potential. It provides you with both short and long-term benefits. Buying a property is a permanent investment for your retirement and also for your future generations. It is an immovable asset that cannot be lost, stolen, or damaged.
GOLD
The best thing about gold is that it is a physical asset with zero counterparty risk, unlike stocks and bonds that require a company or government to pay you. This is exactly why gold was used as a currency before paper money was invented.
Gold tends to hold its value over time, another way of saying it’s a hedge against inflation. The price goes up because the dollar’s value is slowly going down, and that has a theory behind it. While gold has retained its purchasing power over the last 100 years, the dollar has not fared as well.
CORPORATE BONDS
Organizations need capital for their daily operations as well as future expansions and growth. When you purchase a bond, the company is borrowing capital from you. The firm will reimburse your principal deposit on the maturity period as mentioned in the agreement, and until then, you will receive interest on the amount. Corporate bonds are an excellent choice for investors looking for a fixed but higher income from a safer option; it is a safer vehicle when compared to debt funds as it ensures capital protection. This can be an added benefit if you remain invested for up to three years and also, it can also prove to be more tax-efficient if you fall in the highest income tax slab.
SAVING BONDS
A government or savings bond is a bond issued by a national government usually denominated in the country’s currency. Savings Bonds are one of the most preferred investment options for people looking for a fixed income. These bonds are convenient to invest in and offer good interest rates for the amount invested.
The minimum investment for Savings Bond is RS 1000, which can be gradually increased in multiples of 1000. There is no maximum limit of investment. Investors can invest any amount in the Savings Bonds without any issues.
HIGH YIELD SAVINGS ACCOUNTS FOR INVEST YOUR MONEY
High-yield savings accounts are types of accounts that can be found at both online and brick-and-mortar institutions. Typically, these financial tools pay a higher interest rate than traditional savings accounts and almost always offer better returns than checking accounts.
The interest rates on high yield savings accounts can be 20-25 times higher than what traditional savings accounts offer to investors. Electronic transfers are easy to set up between a high-yield savings account and your checking account, even if you hold them at distinct banks.
As you consider various high yield savings account options, weigh factors such as initial deposit requirements, interest rates, minimum balance requirements, and any possible account fees. Just be sure to think through how one or more high-yield accounts can best serve your situation and your financial goals!
BOTTOM LINE
Most investors want their money to double or make immensely high returns within a short time, not realizing the risks involved. Most importantly, if we do not have a calculated risk implemented, it is very difficult to beat inflation, let alone building wealth. With financial expertise where your objectives, appetite for risk, and savings are channelized, choosing the right mix of investments is always advised for Invest Your Money.
