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Best Investment

                    How you should earn as per your nature from Investment?  

                    Everyone has a desired to earn money and also to double or triple the money invested in short period. Every person dreams for earning a handsome money for a happy, healthy and safe life in 2021. So everyone choose different options for the purpose of earning money. Everyone is interested to earn or multiply their money what they have in very short span of time. Because it's quite easy as they do not have burden to operate the organization or business. But the people who is running lack of fund, they don't think for investment, rather they think for savings. Yes, there is a huge difference between savings and investments. Saving is the part of earned income which does not generate any further income or we can say it the idle fund. Where as the investment is the part of income which is capable for earning as a secondary sources. This is not very tough job to convert their savings into investments. But there are some factors which affect not to invest. Such as involvement of risks, lack of knowledge, less maturity, low faith etc. We are here to find out the best Investment Options in 2021. 

                   In our last part of Finance and wealth creation, we discuss about the meaning of finance and wealth and also named about types of wealth Creation. to continue from there, Let's start with Wise world 21st...

Survey Report of SEBI on 2019

                SEBI(Securities Exchange Board of India) has served its survey report on 2019 which is based on more than 50,000 households. The survey, conducted across urban and rural areas of the country.

                As per survey, more than 95% of people are interested in bank deposits while less than 10 % people opt for mutual fund and stocks to invest. In Rural areas less than 1.4% people knows about Mutual Funds and equities.. However 95% had bank accounts, 47% life insurance, 29% post office & 11% saved in precious metals.

                As per survey, most of the People love to invest in bank deposits and then followed by Life insurance. In 3rd place it comes to investment in precious metals, 4th in post office savings and in 5th Real estate.

                After all these, Mutual Fund came at 6th place (9.7%), followed by stocks and derivatives (8.1%). And others are less than 1%. On a positive note, there is a 75% increase of Investors in securities  in 5 years. as per SEBI reports.  

Types of Investment:

                 As we discussed earlier Investment requires capital and that capital should be on earned basis, not through loan basis. If someone is trying to invest from the capital generated by loan and want to earn from it, this may be a huge mistake. Generally, the expenses either may higher than income generate from capital by investing or it may be higher risk which may causes loss on capital and will ruin all the possibilities of survive. So it is better to go with safe hand and mind set.

                 In Every activity a proper mind set is necessary. It always care about your investment and earnings from it. You may loose from your investment as it hold risk, but proper mindset will led you to take proper decision. It will guide you what will be beneficial for you. I know you may ask what is mind set and how it works? I will discuss on it at last.

            There are various kind of investments like, Fixed Deposit, Mutual Fund, ETF, Debt fund, Securities, National Pension Systems, Public Provident Fund(PPF), Gold, Land(Real estate) etc. But are these the way what I know? These have different different features and with relates to different sectors. I know I am explaining here stupidly, but think a bit, are they are in proper order of classifying Investment. Investment should be categorized as per the speed of growth. So, let's discuss what are they and how they classified?

          1) Slow growth Investment: 

                 From the name itself, any one can guess or understand it, that what it wants to say. Slow growth investment means the investment will generate very low rate of income but also it carries a very low or we can say no risk. Here risk means not only loss but chance of loss. So, we can understand that, If we do not want to take any risk, so we can go with this kind of investment. This kind of investments are: 

1. Banking Fixed deposit
2. Public Provident fund
3.  Post Office saving Scheme
4. National Pension scheme
5. Senior Citizen Savings Scheme (SCSS)
6. United Linked Insurance Plans

            Most of Indian follow this category of investments. This is because they are not aware of modern investment schemes. and also some of people don't want to take any risk.

Pros:

• Easy to Invest
• Low risk or No risk
• There is no volatility in value of investments
• easy to understand
• No depreciation on the principal amount
• Guaranteed Returns     

 Cons:

• Very low return
• Very old scheme
• It keep people's mind to safe side and does not allow to take risk
• A fixed time period but can be renewed
• Liquidity is very low

     2) Moderate Growth Investment:

                In the second category, here it comes that there is an investment which provides better return than Risk free return or Fixed deposit. These are comparatively riskier than the slow growth investment. But it is better to invest as a little bit of risk can be carried on by every one.

                The following investments are comes under this category:

1.   Bonds
2.   Debt Fund
3.   Mutual Funds
4.   Tax Saving Funds
5.   ETF etc.

Note: For Mutual Fund investment You can use 'Grow' App, 'Paytm Money' App, Upstox.

 The above plans are moderated due to having better rate of return with some level of risks attached. The risk is it depend upon the growth of industry ans corporate sectors.

Pros:

• Moderate growth on investments
• Open End time period
• High Liquidity
• And Market linked products
• Handled by Professionals

Cons:

• Moderate-High Risk
• People are less aware
• Need to know better Investment plan

3. Fast Growth Investment:

            Here we are, Where people are less aware on this, but who knows about it tries to catch all fishes from a river at a single time. It is quite impossible! Right? People should aware and should work on the ground of Risk-Reward ratio before going to invest in this. In this category, the investments are:

• Share Market
• Commodity Market ( Like trading in Gold, Silver, Zinc, Cruide etc.)
• Currency Market ( i.e. Eur-INR exchange, USD-Yen Exchange etc.)

Note:  To trade in the above sector use best trading app with free brokerage on equity buying and selling and very low brokerage on others. You can check 'Zerodha, Upstox, Angel Broking'(Use introducer code: B152232)

These are most volatile and also high rewarded with wide level of liquid market. Before investing on it, You should aware of both Fundamental and Technical knowledge.

Pros: 

• Provide High rate of return
• Liquid Fund
• Self handled that no can can carried for you.
• Based on Market

Cons:

• Require High level of knowledge
• Higher risk
• High Volatility
• Not for unprofessional people.

This is very volatile in nature and should be carried on by those persons who understand market very well, either it would be like throwing your money in fire.

4. Very fast growth Investment:

                Literally, there are no fair investment plan or opportunity which will give you Very fast growth. It can be possible only by doing fraud activity. So, I will not suggest anyone to do any such kind of activity.  This is very important to understand that there is no plan exist that can grow your money double in one single night. These are mostly fraud events or by luck, like Horse Race, Betting, Gambling etc. So, I think, you understood my point very well.

                So, From my point of view people should not go for very fast growth investment scheme, as this neither gives return but it took away your hard earned capital. It wipe out your savings. So don't be greedy and invest wisely.

I will suggest to invest in different sectors, like a part of capital should be on FD, NPS, PPF etc. and another part should be in Mutual funds, a part should be in real estate, precious metals and also a part should be on Share Market.

Suggestions:

It should be a well maintained fund which will pump your holding at any point of time.

Always plan for long time holding as it will give you more benefit.
If you want to earn in a short span of time, then 1st learn and then only go for it into share market, commodity market, currency or forex market.

If you don't want to learn, then just go for Top mutual Fund on SIP basis. Or invest in Debt fund as one time investment.

It will always be better not to keep all eggs in one rack.

I think, The above article will help you to understand the investment and its types. Now you can choose the best way to invest.

If you like it, Please Comment on the part, what you like the most.

Thanks for reading🙏

Wise World 21st🌍