Lets Multiply! Not just Numbers but real money$

Dear Readers, Welcome to SimplyRead! Yes, here things are so simple!

Let’s Talk about the investment ideas to multiply money. But, first, everyone needs to know what’s the goal/purpose of investing their hard-earned money. Always remember, it’s your money and it’s your decision. Some people may start investments to achieve a short-term goal(ex: To accumulate a fund for their business) or a long-term goal(ex: A retirement plan). And some just want to be Rich! Everyone has different goals. What’s yours?

Also Read: Invest In Yourself-The Skeleton Key to unlock your potential! – SimplyRead

RISK ∝ REWARD:

You are ready to go if you have a better goal and idea. Else, Don’t worry! just keep reading. You would’ve heard about the proverb “No Pain No Gain” and that’s true in investing. Investment(Gain) is always accompanied by Risk(Pain). Furthermore, One should know the Risk of their investment before deciding and investing in it. RISK is directly proportional to REWARD( Risk ∝ Reward) i.e. more risk = more reward.

Watch this content as video by clicking below:

Let’s have a look on the Risk-free and Risky investments:

RISK-FREE INVESTMENTS:

There are investment ideas that totally have zero risk or Very minimal Risk. Do remember the rule Risk ∝ Reward.

1. FIXED DEPOSITS(FD): As the name says everything here is FIXED. One can get a fixed interest for the amount deposited for a fixed duration (One-time investment). Let’s say you are investing 100 bucks for a fixed duration of 1 year. Your fund will be locked for 1 year and you can reap interest either half-yearly/monthly/at maturity as per the provider rule. In India, fixed deposit interest ranges from 2.5 to 6.7% per year as of 2022. Check the interest rates using the following platforms.
   • Banks
   • Financial Brokers(ET Money, Paytm Money, IIFL, etc)
   • Post office
2. RECURRING DEPOSIT(RD): Unlike FD, in Recurring Deposits, the customer deposits fixed amounts in small intervals for a fixed period(not a One-time investment). Here, Investments are made at a recurring interval such as monthly, biweekly, half-yearly, etc of your choice with a fixed interest in return. To put it simply it’s a SIP (Systematic Investment Plan). As like FD all the banks/brokers/post offices can provide RD.
3. GOVERNMENT SAVINGS SCHEMES: Government provides various savings scheme which gives fixed returns at zero risk. These funds are Managed by govt and you know that your money is 100% safe. Some of them in India are PPF, NPS, EPF, Post office savings schemes, etc.
4. REAL ESTATE: The majority of people from developing countries mainly focus on investment in Real estate/ lands/property. This is an effective way of investing with low risk unless there is a major disaster happens such as a natural disaster, Riots that can damage property, etc. No worries, Insurance can help!

LOW/MEDIUM RISK INVESTMENTS:

If you’re a person who likes to take a minimal risk you can follow the below medium for investments.

1. GOLD: One of the precious metals on earth which puts a smile on the face of humans. Not only an investment but also made as an ornament. Sounds good right! The volatility of gold prices is pretty much less when compared to other volatile investments. Investment in Gold can be made as bullion or physical gold. Eg: Sovereign Gold Bonds(SGB), Gold ETF, Gold coins, and Digital gold. Click here to read the effective ways of investing in gold.

1. STOCK MARKET: Stock market risk can be classified from medium to high levels. Some of the medium-level risks include investing in low-risk mutual funds, Balanced mutual funds, and Index Funds. Since mutual funds(MF) are managed by professionals you don’t need to worry about managing your fund. Do remember mutual funds cannot grow in a day as like the famous saying “Rome was not built in a day”. The investment horizon is quite long in MF and the investors need to wait to reap the good benefits of it. Click here to read the basics of stock market.

HIGH RISK INVESTMENTS:

High-risk investments should be made with proper knowledge. Otherwise, following a financial advisor is advisable. Here are some high-risk investments as follows:

1. STOCK MARKET: As discussed earlier, there are high-risk methodologies in the stock market that can give a handsome return. Since this involves high risk, it’s better to consult your financial adviser before investing. Some of the methods include trading such as future and options, individual stock(equity) investments such as small caps, mid-caps, and high-risk mutual funds.
2. DIGITAL CURRENCY/CRYPTOCURRENCY: Currencies in digital have a 24/7 market where the price change is continuous. Like the stock market, digital currencies can be traded in the market. Some of the trending cryptocurrencies are Bitcoin, Ethereum, Tether, etc., Although cryptocurrency can be traded anytime in the market spending them as currency is subject to the acceptance of a particular currency from Business Owners.

REFERAL LINKS FOR BROKERAGES:

Please use the below referral links for opening account with the brokerages:

1. Zerodha: https://zerodha.com/open-account?c=JL3357
2. PaytmMoney: https://paytmmoney.page.link/3L1iSDbjqQM3aVHRA
3. IIFL Markets: https://cutt.ly/dK3gS0e
4. Finvasia: https://prism.finvasia.com/register/?franchiseLead=NjM5MjI=
5. Wazirx: https://wazirx.com/invite/8c24h4ay
6. Binance: https://accounts.binance.me/en/register?ref=144281232

Click here to learn how to select the broker and a detailed view on Demat account.

TO WRAP THINGS UP:

If you are an amateur in investing, SimplyRead suggests you go for low-risk or medium-risk investments. After getting proper knowledge or with a financial advisor you can go for high-risk investments. Hope my readers have got a basic idea of investing. Keep watching our page for upcoming posts for a detailed explanation.

Have you decided on your cup of tea?

What kind of risk you are going to take in your life?

Let me know in the comments section📝. Thanks!