Savings and investments must begin right at the onset of one’s career. Whether you work for a company or have your own business, you need to smartly start planning to build your wealth. Investing and building wealth is certainly not meant just for the elite class. If you earn, you must invest. Earlier you start doing so, more access you get to unimaginable benefits along the course of your life.
The whole purpose of an investment is to make more money. However, investment options like the stock market, mutual funds, etc. come with various risk factors associated with the capital market. There is a chance you may make very good money, or barely get back the amount you invested or actually lose money. If you don’t understand the economic and investment market cycles, it is always better to have professional guidance than blindly invest your great savings in the hope to get rich quick.
You should invest in your health through insurance. You can also utilize other investment vehicles to build a home and create sufficient wealth to last your retirement phase. There is no escape or shortcut involved in investments.
But if you are new to this whole business, read on to get a strong ground to get started.
How to Begin?
You can find various resources on the internet to help you grasp the basics of investing. There are various investment options like Fixed Deposits, PPF and other similar options that are safe to invest and give you assured returns. If you wish to create long-term wealth, it becomes highly essential that you build your investment portfolio with professional assistance.
Moreover, you can access scores of legit tutorials that will teach you the right moves. You can also enroll in offline financial courses that will introduce you to the basics of investment. Once you start, you will eventually learn so much more from mistakes and informed-decisions. You will be able to figure out the right investment options and purpose-driven savings much better, with time.
Investment Vehicles
Investment vehicles are the various channels that you can use to create your investment portfolio. Some are risk-driven whereas others offer you assured returns. There are various investment options that come with market risk, liquidity risk, reinvestment risk, inflation risk and more.
Fixed Deposits (FD), Public Provident Fund (PPF), bonds, fixed annuity, insurance and other products offered by banks, credit unions, and NBFCs can help you accumulate wealth without any involvement of market risks. On the other hand, mutual funds and other money market investments are subject to capital market risks.
The advantage of Fixed Deposits
Are you planning to buy a new car? Is a wedding on the cards? When was the last time you renovated your home? You surely need to prep yourself financially before investing in any of these and other plans. This is when a fixed deposit will really come in handy.
When you have a set goal, you can always create an FD to get assured returns when the time comes. NBFCs offer you flexible tenors ranging from 12 months to 60 months. The FD interest rates offered by this company is also one of the best you can find in the market.
Invest Smartly
You can reinvest your money in the same or other investment channels to multiply your wealth. Find out about new products and schemes being launched by the Government, banks, and NBFCs. Don’t be scared of investing in the stock market. Even though it is riskier than the other options, it also offers far more lucrative returns. Gain a better knowledge of this sector by reading newspapers, talking to professionals from the field. Some other investment opportunities include real estate investment, gold investment and more!
Source: ArticleCube
