What are the Best Investment Options For Long Time : My dear Friends, do you know that whatever capital you earn, some part of it must be invested in some asset or the other. This is called earning money from money or putting your money to work. Most of the rich people definitely invest somewhere which keeps making profits to their investors from time to time.
So, in today’s article what are the best investment options? In this article we will learn in detail about 8 best investment options, so that you can choose investment based on your risk appetite and can earn big profits by staying invested for a long time.
What is Investment ?
Investing your money in a place which can earn you some returns in future is called investment. You can also consider investment as one of your assets which works to increase your money. For example, suppose you have an amount of Rs 5 lakhs, using which you have bought a property, which increases to Rs 7 lakh in the next 2 years, then buying such property will be called a type of investment.
Importance of Investment
If you have a good means of earning in life but you do not put your money to work by looking for investment options, then you will definitely have to work all your life. Suppose you have an amount of Rs 500 which you have kept safe with your original savings account without investing it anywhere.
Inflation rate in India generally increases from 5 to 6.5%. This means that the property which you are getting for Rs 500 today will become costlier by 5 to 6.5% next year. Therefore, if you have kept Rs 500 with you, its value will be reduced by 5 to 6.5%.
Now suppose you have deposited Rs 500 in your savings account and the bank is giving you 3% interest even then the value of your deposited money will reduce by 2 to 3.5 % because the inflation rate of 5 to 6.5% is increasing from.
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Inflation Hedge
If the inflation rate is assumed to be around 6% then if you have invested your savings in an asset whose return is more than 6%, then you can avoid inflation.
Therefore you must invest to beat inflation. Due to inflation the purchasing power of money decreases with time.
Asset Creation Through Investment
If your investment is in the right place, then after some time your investment will start giving so many returns that you will not need any business and you will start getting regular income from your investment. But for this it is very important that you make your investment at the right place.
Even if the investment is made with a small amount, but if the investment is made continuously in the right place, done by compounding your invested capital, it will give you a huge amount in your hands which you cannot even imagine.
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Wealth Creation Through Investment
If you invest a small amount (4000-5000) regularly for 20 to 25 years, a big amount (1 crore) can be made. For this reason, it is advised by big investors that even if you start investing with less capital, you should start investing as soon as possible
What are the Best Investment Options For Long Time
Best Investment Options are as follows :-
A. Investing in Stock Markets
Investing in Stock Markets comes at Number one best Investment Options. If you want to invest for a long time ( above 10 years ) , then investing in the company’s shares I e. In the stock market can prove to be a better investment for you.
For this, first of all you will have to open a demat account from any broker company. After doing technical analysis and fundamental analysis of a company listed in the stock market, you can easily buy the shares of the company and invest in the stock market.
B. Mutual Funds
Mutual Funds come at Number two best Investment Options. Mutual Funds are a popular means of capital investment. This investment is also linked to a stock market in a way. But in this you did not need to do any very deep research on the stock market and the company.
For research, Mutual Funds companies appoint a Fund Manager, whose job is to invest investors ‘ money in the stock market by researching the market and companies and making good returns on investment.
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C. Investing in Gold
The next means of investment is investment in Gold. In the Indian context, investment in Gold jewellery and jewellery is seen as an asset to be used in times of difficulty. Gold is a physical asset. There are following options for investing in Gold :
● Sovereign Gold Bond.
● Gold Mutual Fund.
● Gold ETF.
● Digital Gold.
● Physical Gold.
D. Public Provident Fund
The next means of investment is Public Provident Fund. It can be opened online or offline in a bank/post office and investment can be made in PPF through online transfer/ demand draft/ cheque and cash. At present under the Public Provident Fund the compound interest of 7.1% is given, which keeps changing from time to time as per the instructions of the Government.
E. Investing in Bonds
The next means of investment is Investing in Bonds. A bond is a type of certificate that shows that you have given a loan to an issuer on which the issuer will continue to pay the fixed interest. Bond Investments are considered very safe and help generate regular cash interest and sovereign regular income for investors. The interest rate (coupon rate) in bonds ranges from 5 to 15%.
F. Real Estate
The next means of investment is Investing in Real Estate. The land or building constructed on it collectively is called Real Estate. At present most of the people are earning profit in the field of real estate. People who see it as an investment buy real estate and leave it for a long time, which earns the investor huge returns in the long run.
G. Fixed Deposits
The next means of investment is Investing in Fixed Deposits. Fixed Deposits can be opened in any bank or post office through offline or online. Generally the interest rate in fixed deposits is between 5 to 8%.
H. Senior Citizens Saving Schemes
This is a Government Scheme. The government brought this scheme to benefit senior citizens. Every person who has completed the age of 60 years can invest in this scheme. You can open it from a bank or post office. In this scheme, investors are given interest at the rate of 8.2%.