You don’t need a high-paying job to become rich. Yes, you read it right. All you need is the right investments on your portfolio to become rich. If you are investing in the right securities in the right proportion. Then no one can stop you from becoming rich. It is true that it takes time but in this constantly changing world. With skyrocketing inflation and the value of money going down rapidly. How to increase the value of your money? Many times you think that this rate of return is fabulous but still struggle to finance the luxurious life you were constantly dreaming of. It is not just because your income is less. It is also because you are not investing in the right way. Your portfolio is unbalanced or the return isn’t able to beat inflation. Maybe your investments are not minded keeping in mind the future. Making the right assumptions while investing is the most important part. If your expected inflation rate is less than the actual inflation rate, you would not get desired return.
Now let’s talk about how to become rich? How to invest with the single aim of getting rich? Sounds ambitious but in the 21st century, these kinds of ambitions are justified. So here is the golden rule of investment start early and be mindful of every cent you invest or spend.
Top 5 Investments that will make you rich
1. Stock Market
The stock market is the best security if you are looking for a high return. Also, you are capable of taking a high risk. If you have knowledge of the stock market then this is the best option to become rich. The stock market is mainly for those people who have the knowledge and are willing to invest their time and money. You need to invest some time every day if you want good returns. Time and knowledge are the key determinants of your success in this field. The stock market is very volatile, hence you need to keep tap of the present stock price and you need knowledge of the stock market to ascertain whether to buy or sell the security. You should also have a good knowledge; of various securities traded on the stock exchange and working on the stock exchange. Not only that you should also know the risk associated with each security.
Relax if you don’t have the required knowledge about the stock exchange then it’s never too late to start. There are various courses online from which you can start to learn. If you don’t have time to enroll in a full-fledged course. Then various YouTube channels can help you gain that missing knowledge. These YouTube channels explain complicated concepts of the stock exchange in a very simple language.
2.Mutual Funds
If you are a novice in the stock market or don’t have enough time to invest. But, you are determined to become rich. Then mutual funds are just for you. In mutual funds, you give or invest your money to a financial service provider who deals in mutual funds. These companies then invest money on your behalf in the stock exchange. These companies’ charges commission or fees. These companies are run by people who are experts in the stock exchange. Hence, they can give us a good return on investment. Moreover, mutual funds are less risky than stock market securities. These mutual funds companies offer various services as well as customer support.
3. National Pension Scheme
National Pension Scheme is a scheme run by the government. Any Indian citizen who is 18-70 years old can invest in NPS. You can open a tier-1 account only or both tier-1 and tier-2 accounts. You cannot withdraw money from a tier-1 account before retirement but this is possible in the tier-2 account. Pension funds manage the amount invested and they also manage the pension corpus through various schemes. You can invest your money through two approaches i.e. active and auto. In the active approach, you determine the allocation of funds in asset classes. In auto, the amount is invested according to some predetermined variables like your age. The amount is invested in equity, government securities, corporate debt, and alternative investment funds.
4.Real Estate
If you have a good amount of money to invest. Then real estate is one of the best options. The return you will get on real estate will be determined by the location and condition of the sector. The economy also plays a vital role in determining the value of the real estate. The limitation of real estate is that it is not liquid and the market is also limited. Otherwise return on real estate is very good, if you bought it at a prime location. You can invest in residential as well as commercial space. These days buying office space for investment are in trend.
5. Bank Fixed Deposit
Bank fixed deposits are also a good investment option for risk-averse people. The return on the investment is although low when compared to other securities. It helps in balancing your portfolio as you should not invest all your money in risky securities. So, to balance your portfolio you can invest in fixed deposits. These securities also help in reducing tax obligation as they are tax-deductible under Section 80C. These deposits although look unappealing because of low return but these securities are liquid and are safe as well as secure. The rate of return varies from bank to bank but the variation isn’t much. There was a time when people used to invest all their savings in fixed deposits but, now due to an increase in inflation and decrease in interest rate. Fixed deposits popularity has reduced significantly.
These were a few investments that will not only help you in becoming rich but, also help you in balancing your portfolio. If you want to know more or have any query then you can comment down below.
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