It is not necessary to have a high amount of salary or a big profitable business to become rich. You can become rich fast otherwise too. With low salary and small profits, you can also become rich just by investing your money in the right place at the right time. There are many people who want to invest but cannot decide where and how to invest. If you get the right direction, you can raise big capital by starting small investments from the beginning. Here we bring you some tips through which you can save or invest and enjoy big benefits in the long run.
Understanding the concept of Investment
Always choose investment options according to your needs. Invest only after understanding the investment plans based on your monthly salary, expenses, risk profile and most importantly the amount of returns you are expecting. After all these things, decide whether you want to invest for the short term or the long term.
How much to Save
If you are saving Rs 3200 every month, for example, and you get really good returns of as high as 10% on this amount, then after 30 years you will get around RS 72,94,000.
Separate savings account
Instead of keeping your savings in the salary account, keep them in a separate savings account. Invest that money at different places like Saving schemes of post offices and banks are the easiest and safest option. Along with this, the stock market, mutual fund, PPF, insurance, and LIC are the options which provide good returns.
Investment in the stocks is a high risk and high return option. However, there are many companies in the stock market which are considered safe for investment, such as banking, power, IT, auto sector etc. After looking at the old records of banking companies like SBI, HDFC Bank, ICICI Bank are considered less risky. NTPC in Power Sector, Infosys in IT, Wipro, TCS, Hindalco in Metal, Tata Steel, Tisco, Maruti in Auto Sector, Reliance Industries in Textile etc. are considered as better options.
Gold, Silver and other precious metals too have proved to be good investments. However, according to the market experts, this is a good option for the long term. It will be better to invest only 15 to 25% of your savings as it is not getting good returns like it used to earlier.
This is a systematic investment plan option. In this, the investor imposes the money directly through the fund manager. In mutual funds, you can invest money every month according to your savings. The return rate can be as high as 12 to 15% per annum. There is also a little risk in it because it depends on the stock market. However, you have to stay invested for at least 5 years.
RD and FD
Investment can also be done in the RD account. Recovery Deposit (RD) also gets good returns. Apart from this, the option of a fixed deposit (FD) is also good. But, do not put all the money in the FD because if you break the FD before completing the of the term you may get less interest or sometimes the bank imposes penalties for that.
Are you a corporate employee or businessman? Invest around 25% of your savings in the long term. The long-term investment like public provident fund (PPF), provident fund (PF) and life insurance are good options. PPF and PF schemes are getting 8.75% annual returns in the present time.
There are several schemes in LIC which are beneficial for the investors. These include sickness, accident, loan facility, as well as a high amount of money in maturity. LIC provides 5% to 7% returns. With it you and your family are safe. There is no pressure on the family. Money is available on the job, children’s education, and marriage.
Investment in property
Real estate is a good option, but before investing in it you should look at the current property market situation. Try not to buy too expensive properties because sometimes there is a possibility of more damage than a decline in the market. In addition, if you have invested in equity and it gives good returns in 2-3 years, then it may be a wise decision to shift those rupees to real estate.