6 REALLY OBVIOUS WAYS TO SAVE MONEY BETTER THAT YOU EVER DID


There is a direct proportionality between risk and return. Lower risk entails lower returns, while higher-risk high entails higher returns. Investing in equity-linked instruments against fixed-income instruments is crucial for achieving higher returns.

Let’s now look at a few high-return investment options:

Direct equity
As the name suggests, this option allows you to invest directly in the stock markets through buying stocks of companies listed and traded on a prominent stock exchanges such as BSE or NSE in the secondary market. Here, you will need to decide the shares to buy. You will require opening a Demat account with a stock brokering house. This the account will be used for crediting and debiting your share purchases and sales. You can invest in stocks of companies from diversified sectors

Initial public offering (IPO)
IPO is one of the most popular routes to buying a company’s share from the primary market at a highly competitive price. A survey conducted by ET Online showed that IPO emerged as a major money-spinner for Indian investors in FY18. This was proven by the fact that ~65% of the newly listed companies under the IPO route traded well above their original issue price, providing investors with triple the returns on their original investment. Today, investors are on a constant lookout for an upcoming IPO in India that can provide them with higher returns once listed.

Equity mutual funds
Equity mutual funds covering mid-cap and small-cap stocks generally provide investors with higher returns owing to their highly volatile nature. They tend to provide returns that beat inflation growth rate in the long run.

Equity-linked savings scheme (ELSS)
ELSS provides investors with the dual benefit of tax savings and investment, while helping investors diversify their portfolio. Among the tax-saving investment options, ELSS enjoys the lowest lock-in period of 3years for funds invested.

Real estate
Compared with other investment asset classes, real estate prices are less volatile. Most of the times, they can be used as a good hedge strategy against growing inflation. Now, investors can invest in real estate funds through indirect options using the SIP route. This is in addition to the direct investment option such as buying a property.

National Pension System (NPS)
NPS is fast becoming a highly popular long-term investment option for Indian investors. NPS required you to make a minimum annual (April-March) contribution ofRs.1000 into your Tier-1 account to remain active. Funds invested in NPS are allocated into a diversified class of assets, which include equity, fixed income options, bank FDs, bonds, liquid funds, and government funds. The best part is you can decide the extent of the debt-equity balance in NPS based on your risk appetite.

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