In order to invest money you will of course need money at the first place.
Initially, an active source of income is necessary to be able to grow your money consistently. The idea is not only to save but to invest your savings into assets. In this blog post, I am going to tell some of the options which you should consider if you’re in your 20’s.
(what if I am a student / just graduated and don’t have any source of income right now?
well, you can start investing in Mutual Funds with just 500 Rs. per month and you can choose these options which I am going to discuss here.)
okay , so let’s start with the first option which is
Investing in yourself:
Among all these options , this is the best kind of investment you can do in your 20’s.
You might have heard this a lot.
No matter, how cliché it sounds but it will always be a relevant thing to consider.
it could be getting membership in the public speaking course, taking advance courses in your field, learning a new skill or anything which can help you to grow in your career.
it will eventually boost your earning which you can further convert into assets.
Now, coming to market options for investments
I have made 3 categories as the risk apatite of everyone is not same.
It is for those, who want to play safe which means they want gauranteed returns on the money.
These options are Fixed deposits, Recurring Deposits, PPF etc.
As they are risk-free the interest rate is considerably low.
But still it’s better option than keeping huge amount in your saving accounts.
E-gold is an electronic way to buy gold which is a considerably better option than buying physical gold. This Gold investment product was launched by National Spot Exchange Limited (NSEL) .
- Each unit is backed by pure gold so there is no risk to purity.
- liquidity is higher than the physical gold
- There is no risk of threat.
Right now the best thing you have is time, the more time you will have the better exponential growth you will experience.compounding works magically in long term.
there are majorly three kinds of mutual funds-
- Debt mutual funds are the fixed income securities like government security, treasury bills, bonds etc. They are considered to be safer than the equity (market-oriented) mutual funds.
- Equity Mutual funds are for those who have a good risk appetite and want to get the exposure of the market. In the long-term, this is the best option but for the short term, it should be avoided.
- Balanced funds are a mix of above two. It is generally considered a good option who want to play safe but still want better than average returns.
If you have the patience to stay invested for the long term then this might be the best option for you. In long term, they are almost risk-free and the chances of growth are huge.
A stock is security which gives stockholders a share of ownership of a company.
if you buy shares of a company then you become a partial owner of the company.
you may get huge profits but you also may loose all your money.
So, it’s recommended only for those who has good knowledge of the market.
Don’t get into fancy investment schemes which are popular in the market , take your time and decide the best for you.
Remember the best investment plan is always simple.