Personal Investment Avenues: 5 Ways to invest your Money

 

                                            


Introduction

                                            People invest their money to gain financial security. A good financial decision can create wealth and prosperity.
 But a bad financial decision can destroy people's money. To avoid that I am going to tell you 5 ways to invest your money and they can ensure your safety and also with profitability.

There are 3 aspects which need to be considered before investing money namely liquidity, profitability and safety.                                                                                                                          

Some investments can be easily and readily encashed without any loss such investments are called as liquid investments for example bank deposits, government bonds, mutual funds, metals like gold, silver and platinum.

Other investments cannot be liquidated immediately but brings an higher return at maturity for example real estate investments, shares, debentures, fixed deposits, public deposits and money back insurance policies. 


Following are some of the best ways to invest your money.


Public Provident Fund

                                             It is the safest long term investment in India and it's totally tax free. PPF account can be opened in any bank or post office. The money deposited cannot be withdrawn before 15 years and an investor can earn compound interest from this account. However the investor can extend the time if he/she does not opt to withdraw the amount matured at the maturity payment date. PPF investor can also take a loan against PPF account when he/she experiences financial difficulties. 

Direct Equity or Share Purchase

                                              An individual can opt for investment in shares. But he has to analyse the market price that has been traded in the stock exchange, reputation of the company, consistency in the payment of dividend, the nature project undertaken by the company and growth rate of the company before investing in shares. If the investment is made for long term it will yield a good return.

Investment in Metals

                                             Investments in metals like gold, silver and platinum is one of the oldest and evergreen investment products. The value of the metals rise slowly and steadily in line with dynamic market conditions. But investors can liquidate the metals immediately in the market without any loss.

Post Office Saving Schemes

                                             There are different types of postal small saving schemes namely post office savings account, post office Recurring deposit (RD), post office Fixed deposit (FD), Senior citizens saving scheme (SCSS), Public provident fund (PPF), National savings certificate (NSC), Sukanya Samriddhi Account (SSA).
                                              Investors can choose appropriate postal scheme for their needs.
                                               Postal investments schemes is one of the safest investments.

Bond Investment

                                             Bonds are one of the ideal investment options for those investors who would like to invest their hard earned money safely. Bonds are issued by both government and public and private sector companies and financial institutions. Mostly there are 4 types of bonds sold in India namely
  • Government bonds
  • Corporate bonds
  • Banks bonds
  • Tax saving bonds
The term bond is used for the debt collected by the government while the term debentures is used when the corporates collect debt capital from the public. Investment here is totally risk free.

Conclusion

                           The above stated investments are the safest investments you can make except the  Direct Equity or Share purchase because there is equal risk to invest in shares as there is no guaranteed return therein. However these are my 5 ways to invest your money if u know other safe investments in India you can tell them in the comments.   
 





                          

                                             

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