Investing helps you to achieve your financial goals without any hitch and helps to attain financial stability in life. Investors today have a number of investment options to choose from. Some are traditional investments that have been into existencesince time immemorial, while others are relatively newer investment options that have gained popularity in recent years.
Following are some of the most popular options available to investors in India.
Also known as company shares, stocks are probably the most famous investment haven in India. When you purchase a company’s stock, you buy ownership in that company that permits you to partake in the company’s growth. Stocks are ideal for long-term investment duration. However, investing in shares should not be equated to trading in the stock market, which is a speculative activity.
Mutual Fund investments
Mutual funds have been there for a few decades but they have recently gained popularity only in the last few years. These are financial vehicles that pool the money of several investors and invest it in a manner to earn optimum returns. Different types of mutual funds invest in varying securities. Equity mutual funds invest principally in equity-related instruments and stocks, while debt funds invest in securities like bonds and papers.
Bank fixed deposits are investment havens that are for a specific, pre-determined time period. They offer capital protection as well as almost guaranteed returns. These securities are ideal for conservative investors who wish to steer away from risks. Several banks offer fixed deposits for different periods. The interest rates on bank fixed deposits change as per the economic conditions of the country and are decided by the banks themselves.
A recurring deposit (RD) is another type of fixed investment that lets investors put in a specific amount every month for a pre-defined period. Post offices and banks offer RDs. The interest rates are determined by the institution offering it. An RD allows an investor to invest aninsignificant amount every month to build a corpus over a specified time period. RDs have the potential to offer capital protection as well as guaranteed returns.
If you choose to invest in mutual funds, make sure it aligns with your investment horizon, financial goals and risk profile. Investing in mutual funds might seem very complicated. So, you can always avail the services of an expert who can guide you through the entire process of investing. Keep checking your portfolio regularly to keep a track of underrating investments. Happy investing!