It can be a challenge for many to find the right place of investment to grow money. People are always confused about where to invest money to get good returns. If you are also confused, STOP, worry no further.
This article is going to solve all your problems. In today’s world, earning money may not be enough to fulfil your financial goals and take your dreams towards fruition.
A common myth about investing is that a big fat bank account is required just to get started. In reality, the process of building a solid portfolio can begin with a few thousand — or even a few hundred — dollars.
Why do people invest ?
The answer is very simple. People invest because they want to attain financial freedom. If you ask me why do I invest? My answer is that I take investing as a game.
Yes, as ‘a game’. And each penny that I earn is my score.
And I love it. Seriously the more you worry about money it becomes more difficult to invest wisely.
How to invest money to make money fast ?
Well, I have no answer for this question. A short term investment plan with high returns is like shooting in the dark.
A common myth about investing is that a big fat bank account is required just to get started. In reality, the process of building a solid portfolio can begin with a few thousand — or even a few hundred — dollars.
Why do people invest ?
The answer is very simple. People invest because they want to attain financial freedom. If you ask me why do I invest? My answer is that I take investing as a game.
Yes, as ‘a game’. And each penny that I earn is my score.
And I love it. Seriously the more you worry about money it becomes more difficult to invest wisely.
How to invest money to make money fast ?
Well, I have no answer for this question. A short term investment plan with high returns is like shooting in the dark.
Believe me short term investments are just the matter of luck. Investing is a long term process. And short term is like gambling.
Investing demands patience. There are many advantages of investing in long term. Some I have listed below.
It is easy to invest in long term.
Investing demands patience. There are many advantages of investing in long term. Some I have listed below.
It is easy to invest in long term.
- You will save money come tax time.
- It’s less risky.
- Less stressful.
- Helps to diversify your portfolio.
- Dividends will multiply.
- Compound interest will become your friend.
- It will make you a gentle person with great personal qualities.
Well, if you still want to continue reading, congratulations. You have that vigour of a real investor.
Below, I have mentioned, best investments to grow money. So, lets begin.
Everything is in your control. Now you can invest in the stock market at the comfort of your home, with your mobile phone.
You must have heard that, never keep all your eggs in one basket. And it's totally true. You should never do that unless the control of the basket is in your hands.
You should always diversify your portfolio. Try to look out for the shares of more than 10 good companies. I repeat, Always diversify your portfolio.
If you are still worried about how to invest in the share market ? Just go and search on the google.com search engine or on YouTube.com. You will get many tutorial videos that will teach you about the stock market in a crystal clear way.
Tip : Never invest in penny stocks. Penny stocks are those stocks whose value is very less. Chances of these stocks performing well is very less.
Always try to get stocks which pays dividends, Mutual funds is just a collection of many stocks and it can be a very good option for beginners.
Taxes on the dividends are not that scary as they seem to be. Always take calculated risk and make a budget for your investment.
FAQ : What are dividends ?
Stocks
Investing in stocks comes with risks, especially in short term investment. In the 21st century investing is on your fingertip. Everything is online. No physical broker who will fool you or cheat you.
You must have heard that, never keep all your eggs in one basket. And it's totally true. You should never do that unless the control of the basket is in your hands.
You should always diversify your portfolio. Try to look out for the shares of more than 10 good companies. I repeat, Always diversify your portfolio.
If you are still worried about how to invest in the share market ? Just go and search on the google.com search engine or on YouTube.com. You will get many tutorial videos that will teach you about the stock market in a crystal clear way.
Tip : Never invest in penny stocks. Penny stocks are those stocks whose value is very less. Chances of these stocks performing well is very less.
Always try to get stocks which pays dividends, Mutual funds is just a collection of many stocks and it can be a very good option for beginners.
Taxes on the dividends are not that scary as they seem to be. Always take calculated risk and make a budget for your investment.
FAQ : What are dividends ?
A dividend is defined as a payment made by a corporation to its shareholders. Usually these payouts are made in cash but sometimes companies will also distribute stock dividends, whereby additional stock shares are distributed to shareholders. In simple words it is a reward given to the long term investors.
FAQ : Are stocks good investments?
The simple answer is, Yes. It is better if you are young. Always remember, ‘Bearish market sustains less than the bullish market.’ Don’t worry. If you fail then it will be a lesson learned.
FAQ : How to invest in stocks for beginner ?
Following are the 5 simple steps to get started with stock market investing.
- Decide how you want to invest in stocks.
- Open an investing account.
- Know the difference between stock and mutual funds.
- Set a budget for your investment plan.
- Start investing.
Bonds
A bond is like a fixed deposit investment, but they are not the same. A fixed deposit offers you more interest while a bond offers less. But bonds have more tax benefits, hence it can be a good investment.
- Wait for the maturity of the bond.
- Sell the bond at a price higher than you buyed it.
Bonds comes in various varieties, Such as :
- Corporate - A corporate bond is debt issued by a company in order for it to raise capital. An investor who buys a corporate bond is effectively lending money to the company in return for a series of interest payments.
- Municipal - Municipal bonds are debt securities issued by state and local governments.
- Government - A government bond or sovereign bond is a bond issued by a national government, generally with a promise to pay periodic interest payments called coupon payments and to repay the face value on the maturity date.
When an entity issues a bond they take money from you and they promise to return back your invested capital with interests. Over a specific period of time.
These bonds are considered as safe investments or rather the safest when issued by the government.
FAQ : How bonds work ?
These bonds are considered as safe investments or rather the safest when issued by the government.
FAQ : How bonds work ?
Whenever a person is buying a bond he is lending money to the issuing authority. A bond is not a stock. A bond is for a fixed period of time whereas stock can be withdrawn at any time.
A fixed time period is allocated for the bond. The money raised by issuing the bond is used by the entity. If the issuing entity is a company then they might use that capital in Innovation or Research and Development. If the bond is issued by the government then they may use that money in launching new projects etc.
Benefit : Compounding effect works in bonds investments. See an example below. (Example Base amount $50,000, After maturity - $113,221.47)
Calculator source.
FAQ : What are the advantages and disadvantages of investing in bonds ?
Everything comes with pros and cons. Similarly bonds do have the same.
Advantages :
A fixed time period is allocated for the bond. The money raised by issuing the bond is used by the entity. If the issuing entity is a company then they might use that capital in Innovation or Research and Development. If the bond is issued by the government then they may use that money in launching new projects etc.
Benefit : Compounding effect works in bonds investments. See an example below. (Example Base amount $50,000, After maturity - $113,221.47)
FAQ : What are the advantages and disadvantages of investing in bonds ?
Everything comes with pros and cons. Similarly bonds do have the same.
Advantages :
- Portfolio diversification.
- Risk Management.
- Professional Management not required.
- Reduction in transaction cost.
- Liquidity.
- Well regulated.
- Transparency.
- Convenience to unit holders.
Disadvantage :
- No tailor made portfolio.
- No control over cost.
- Managing a portfolio of funds.
- Dilution.
Tip : You can also invest in gold through a sovereign gold bonds scheme.
FAQ : Is bond tax free ?
In most of the country it is tax free. (May vary country to country.) But overall bonds have tax advantage over fixed deposit investment. Source
Recommended : How to make a budget plan.
It is said - “Don’t wait to buy real estate, Buy real estates and wait.”
The major fortune in America is made in land. Real estate can not be lost or stolen or neither can it be carried away. Purchased with common sense paid for its full.
Real estate is one of the most favourite investment options for the wealthy people. It is something which multiplies over the course of coming years.
Jeff Bezos, Bill Gates, Mark Zukerberg, Elon Musk and many other rich and successful people love to invest in real estate. Jeff Bezos is the person who owns the most land in America.
Home ownership buys permanence. “Buy land, they are not making it anymore.”
Real estate investing, even on a very small scale, remains a tried and true means of building an individual cash flow and wealth.
FAQ : What are the simple steps in real estate investing ?
The steps are as follows :
FAQ : Is bond tax free ?
In most of the country it is tax free. (May vary country to country.) But overall bonds have tax advantage over fixed deposit investment. Source
Recommended : How to make a budget plan.
Real Estates
Property consisting of a land or a building is called real estate. But the question arises, is real estate investing profitable ? And the simple answer is Yes. It is.
The major fortune in America is made in land. Real estate can not be lost or stolen or neither can it be carried away. Purchased with common sense paid for its full.
Real estate is one of the most favourite investment options for the wealthy people. It is something which multiplies over the course of coming years.
Jeff Bezos, Bill Gates, Mark Zukerberg, Elon Musk and many other rich and successful people love to invest in real estate. Jeff Bezos is the person who owns the most land in America.
Home ownership buys permanence. “Buy land, they are not making it anymore.”
Real estate investing, even on a very small scale, remains a tried and true means of building an individual cash flow and wealth.
FAQ : What are the simple steps in real estate investing ?
The steps are as follows :
- Do your deep research for the property.
- Pay the lowest down payment possible.
- Move out and go for the inspection of the property.
- Get exact valuation.
- See all the paperwork carefully.
- Invest successfully.
These were some basic simple steps on how to invest in real estate for beginners. It may go to some advanced level also. It depends on the kind of property and location.
FAQ : How to invest in real estate with little money ?
Is it possible to invest money in real estate with little money ? Yes it is. - REIT’s will do it for you.
A real estate investment trust (REIT) is a company that owns, operates, or finances income-generating real estate. Inspired by the mutual fund scheme. It allows the investor to invest in real estate with low capital.
This can be a good option for the ones who are new in the real estate investment industry. It will give you the feeling of a real estate investor as well as good experience in the investing industry.
Disadvantage of REIT investment :
Disadvantage of REIT investment :
- Grows at a slower pace - only 10% of income can be reinvested back into the business.
- Tax treatment - REIT dividends are not treated under tax - friendly.
- Investment Risk
- May rely on debt - A higher dividend pay - out may force management to go for higher leverage to expand real estate holdings.
- Some REIT’s may incur high management and transaction fees, leading to lower pay - outs for shareholders.
Everything in this world comes with some pros and cons. Similarly Real Estate investing also has it. And they have been mentioned below.
Pros : It helps to diversify your portfolio. It provides a source of passive income and hedges inflation.
Cons : It requires a cash investment. Costs capital to maintain the property.
The best way to make (double impact) money from your real estate investment is RENTING IT. AirBnb can help you do that easily.
Extra Stroke Advice : Given below are the list of the best books on real estate. You can read them to know more deeply about it.
Pros : It helps to diversify your portfolio. It provides a source of passive income and hedges inflation.
Cons : It requires a cash investment. Costs capital to maintain the property.
The best way to make (double impact) money from your real estate investment is RENTING IT. AirBnb can help you do that easily.
Extra Stroke Advice : Given below are the list of the best books on real estate. You can read them to know more deeply about it.
Savings Account
I am quite sure that you must be having a savings account. Well this was the first place where I invested money (For the first time.) My bank pays an interest of 3.2% p.a.
- Deposit savings account
- Money Market accounts
- Jumbo savings account
- High - interest savings account
- Reward savings account
- Joint savings account
- Students saving account
- Certificate of deposit
High-yield savings accounts are a type of savings account, complete with FDIC protection, which earn a higher interest rate than a standard savings account. The reason that it earns more money is that it usually requires a larger initial deposit, and access to the account is limited.
A savings account can be opened online very easily. The advantages of savings accounts are the potential to earn interest. It is considered as a safe investment but is not safe because it doesn't counter inflation.
Personally in my opinion I don't like investing in savings accounts. Although I started from here. I started here because I didn't understand the world of investment very well at that time.
“Although I knew that I was doing wrong but I also knew that I was right.” The main thing is the lack of knowledge. Each penny which I earn is not because luck favoured me. Luck will only favour you when you are determined to do something.
As I told you that I didn't even know ‘I’ of Investing then how can I invest in stocks, bonds, ETFs and Real Estates. These are risky investments and can only pay you if you have correct knowledge of the field. Some people waste money and time trading online.
But do you know that greedy things like trading are nothing else than gambeling your money?
Let me explain to you more clearly. Simple advice is that if you are a beginner in the investing industry then don't play with your money which you have earned with so much effort.
A savings account can be opened online very easily. The advantages of savings accounts are the potential to earn interest. It is considered as a safe investment but is not safe because it doesn't counter inflation.
Personally in my opinion I don't like investing in savings accounts. Although I started from here. I started here because I didn't understand the world of investment very well at that time.
“Although I knew that I was doing wrong but I also knew that I was right.” The main thing is the lack of knowledge. Each penny which I earn is not because luck favoured me. Luck will only favour you when you are determined to do something.
As I told you that I didn't even know ‘I’ of Investing then how can I invest in stocks, bonds, ETFs and Real Estates. These are risky investments and can only pay you if you have correct knowledge of the field. Some people waste money and time trading online.
But do you know that greedy things like trading are nothing else than gambeling your money?
Let me explain to you more clearly. Simple advice is that if you are a beginner in the investing industry then don't play with your money which you have earned with so much effort.
Warren Buffet once said - “The more you learn the more you earn.” Learning is the first step towards investing. This is the reason why my first investment choice was a savings account. It was a safe investment.
Since you are reading this unique article at www.kuipeer.com I want you to have complete knowledge about the topic, ‘Best investment to grow your money.’ For transparency let us know the advantages and disadvantages of investing the money in a savings account.
Advantage :
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| Warren Buffet's wealth Graph |
Advantage :
- Deposited money earns interest (1% - 2%)
- Money is safe and relatively easy to access.
Disadvantage :
- Interest earned is low, often lower than inflation.
- Cannot access with checks.
Well, Investing in a savings account should always be in your portfolio. It is good for the health of your portfolio.
To know more about mutual fund investment we must know about the types of mutual funds. Generally there are 5 types of mutual funds :
Mutual Funds
Mutual funds are the perfect solution for people who want to own stock without doing their own research. A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase stocks.
- Active and passive mutual funds - Active investing requires a hands-on approach, typically by a portfolio manager or other so-called active participant. Passive investing involves less buying and selling and often results in investors buying index funds or other mutual funds.
- Equity Fund - An equity fund is a mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed.
- Balanced Fund - Balanced or hybrid mutual funds are a one-stop investment option offering exposure to both equity and debt segments. The main intention of hybrid funds is to balance the ratio of risk-reward and optimising the return on investment.
- Fixed Income Fund (FI) - Fixed income funds are mutual funds which give you returns at fixed intervals - monthly, quarterly or half yearly.
- Alternative funds - Alternative funds are mutual funds, or exchange-traded funds (ETFs), that invest in non-traditional securities, such as real estate, commodities, and leveraged loans.
TIP : This is the right time to invest in mutual funds. (# Recession of 2020)
Warren Buffet gave two rules of money :
Rule 1 - Never lose money.
Warren Buffet gave two rules of money :
Rule 1 - Never lose money.
Rule 2 - Never forget rule 1.
Therefore I am suggesting you to always invest in mutual funds. Because saving money is wise but investing it is profitable. The main advantage of Mutual Funds is that you don't handle your investment. It is handled by experts who are dedicated to this field only.
Chances of you losing your money is less if you invest in Mutual Funds. As always, even mutual funds have many advantages and disadvantages. But still mutual funds are created in order to make investing easy.
Advantage of investing in mutual funds :
Therefore I am suggesting you to always invest in mutual funds. Because saving money is wise but investing it is profitable. The main advantage of Mutual Funds is that you don't handle your investment. It is handled by experts who are dedicated to this field only.
Advantage of investing in mutual funds :
- Diversification
- Liquidity
- Professional fund management
- Systematic / regular investment
- Tax benefits
- Extraordinary returns
Disadvantage of investing in mutual funds :
- Not for short term
- No control
- High Cost
- Choice overloaded
FAQ : Are mutual funds safe investment ?
In a nutshell, mutual funds are safe. Investors should not be worried about short-term fluctuations in the returns while investing in them.
FAQ : How to invest in mutual funds for beginners ?
FAQ : How to invest in mutual funds for beginners ?
You will never understand anything better unless you do it practically. You can definitely start investing in mutual funds, and you can consider this investment as a safer investment for the beginners. Simple steps are given below :
- Open a bank account and get your KYC done.
- Select an asset management company.
- Choose a fund based on your financial goals.
- Decide SIP amount
- Start investing !!!
Commodities
In economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them. Simple commodity examples are oil, gold, silver etc.
Gold has always been the best option of investment in the whole world. It is also one of my best choices, but not always. Gold is a bit of a tricky investment.
Let me give you an example. Presently the prices of gold are very high (in 2020), because all the investors have invested their money in gold to safeguard their cash.
Therefore it will not be a good option to buy gold as an investment option in 2020. Let the recession pass by. Once the prices come back to its normal position you can take it as an option for investment.
FAQ : How to invest in gold for beginners ?
Basically there are two ways of owning gold.
Let me give you an example. Presently the prices of gold are very high (in 2020), because all the investors have invested their money in gold to safeguard their cash.
FAQ : How to invest in gold for beginners ?
Basically there are two ways of owning gold.
- Physical
- Paper
Physical : You can buy it physically in the form of jewellery, coins, and gold bars
Paper : paper gold you can use gold exchange traded funds (ETFs) and sovereign gold bonds (SGBs). Then there are gold mutual funds (fund of funds) which further invest in gold ETFs.
FAQ : What is a sovereign gold bond ?
Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are a substitute for investment in physical gold.
The formula is simple for SGB. You buy gold at the presten price and then later when the maturity period is reached then you will get returns according to the price of the gold at that time. The amount earned as profit is TAXABLE(presently).
Paper : paper gold you can use gold exchange traded funds (ETFs) and sovereign gold bonds (SGBs). Then there are gold mutual funds (fund of funds) which further invest in gold ETFs.
FAQ : What is a sovereign gold bond ?
Sovereign Gold Bonds are Government securities denominated in multiples of gram(s) of gold. They are a substitute for investment in physical gold.
The formula is simple for SGB. You buy gold at the presten price and then later when the maturity period is reached then you will get returns according to the price of the gold at that time. The amount earned as profit is TAXABLE(presently).
So, let's discuss the advantages and disadvantages of investing in gold.
Advantage :
- No Demat account required. (Demat account is mandatory in case of investment in Gold ETFs.)
- Investors can invest through SIP, which is not available in case of gold ETFs.
Disadvantage :
- Gold Funds being funds of fund schemes are slightly more expensive than Gold ETFs. Apart from annual fund management charges of Gold ETFs, investors have to bear the fund management charges of Gold Fund.
Books
Yes, this should have been the first point but I have mentioned it last. Books are the best investment of all time. I am not a professional financial advisor but I can give best experienced financial advice. I have not taken personal finance advisory as a currier, rather I have learned it through many books.
Warren Buffet once said - “The best investment you can do is on yourself.” There are many reasons why rich people read a lot. Reading books is a sign of good habits.
Reading will always make you better.
Must Read : Can money buy happiness. One of my first personal finance book was Think and Grow Rich. I have also read many other all time hit books like - The 7 Hour Work a Week, How to win friends and Influence People, The power of your subconscious mind, The 10X rule etc.
Reading will always make you better.
Must Read : Can money buy happiness. One of my first personal finance book was Think and Grow Rich. I have also read many other all time hit books like - The 7 Hour Work a Week, How to win friends and Influence People, The power of your subconscious mind, The 10X rule etc.
I have also given the link to those books for your convenience.
Scientific benefits of reading
Scientific benefits of reading
- REDUCES STRESS
- MAY ADD YEARS TO YOUR LIFE
- IMPROVES YOUR LANGUAGE SKILLS AND KNOWLEDGE OF THE WORLD
- BOOSTS CREATIVITY AND FLEXIBILITY
- CAN HELP YOU TRANSFORM AS A PERSON
Physical benefits of reading
- improves brain connectivity
- increases your vocabulary and comprehension
- empowers you to empathize with other people
- aids in sleep readiness
- reduces stress
- lowers blood pressure and heart rate
- prevents cognitive decline as you age
- fights depression symptoms
Conclusion
Finally the article is over. As a conclusion I would suggest you to work on your investment plan from now itself(at this present moment.)
Download the pdf of this article and don't search for the best investment to grow money any more. It will be none other than the waste of your time. This particular article is more than enough for you to get a guide for your investment plan.
Do share this article with your loving friends, family or any other person whom you know. It will also help them to get the best investments to grow their money.
Download the pdf of this article and don't search for the best investment to grow money any more. It will be none other than the waste of your time. This particular article is more than enough for you to get a guide for your investment plan.
Do share this article with your loving friends, family or any other person whom you know. It will also help them to get the best investments to grow their money.
Thank You
God Bless You.
God Bless You.
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