Different Modes of Investment - Stocks / Mutual Funds / NPS / Real Estate / PPFSubscribe

Is the investment worth sacrificing our money? 

This question might have appeared in your mind at least once in your lifetime.

Before we begin with different modes of investment, let's comprehend how investment plays a vital role in one's life. One can consider the investment a savings tool or a long-term treasure. Investment is nothing but keeping aside a sum amount and investing it in a reliable mode from which you can obtain higher returns. In a nutshell, investment is when a person gives their current asset for a future asset. Investors get the return benefits over some time.

The market is filled with various types of investment methods. People often get baffled about which one to select and which one is reliable. Before investing, one must understand that wealth management should be taken seriously before investing. Certified wealth management is the key to a blissful life. Moreover, one of the preeminent reasons why people invest is to make a significant financial shield to protect themselves from the inflation monster. Inflation is when prices of goods and services increase and people's purchasing ability decreases. Inflation is the biggest threat to a nation's economy. In inflation, the value of money falls. For instance, you may have 1,00,000 rupees now, a significant amount today, but the same amount won’t seem so big in the future. When inflation escalates, investors often opt for tangible assets to out-turn inflation because the probability of elevation in the value of tangible assets is usually high in the future. For decades gold and other precious metals have been a reliable choice for investors. Nonetheless, the best way to track the inflation rate is to compare the prices of commodities you usually buy. 

What are the top 5 investment modes you can opt for?

1) Share Market - Stock investment is nothing but buying shares of ownership in companies. Stock investment plays a vital part in your investment portfolio. Owning stocks can help you protect money from growing taxes and inflation, increase savings and maximise income from your investment.

2) Mutual Funds - Mutual funds are one of the standard investment methods. Many people find mutual funds perplexing, but the concept is pretty simple. Mutual Funds construct a pool of money from investors and invest that money in stocks, bonds, etc. A proficient money manager supervises Mutual Funds. This way of investment is reliable because experts invest your money with meticulous research.

3) NPS - NPS (National Pension Scheme) is an investment scheme backed by the Government. The Government of India introduced NPS to provide old-age security to its citizens. The advantages of NPS are numerous, from easy access to easy documentation and higher returns.

4) Real Estate Investment - Real Estate Investment is one of the sought-after investment modes in India. Because everyone in India is inherently passionate about owning property, this way of investment is to generate extra income from rent rather than making it a primary residence.

5) PPF - Public Proficient Fund is a preferred investment method for long-term return. This investment mode is prevalent because of its return and income tax benefits. The Public Proficient Fund has a tenure of 15 years.


Financial Planning


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