In the current economic scenario with interest rates going down with each passing day and inflation going up, maintaining a savings bank account might not be the best of ideas. On the other hand, investment can turn out to be a viable option for thousands of individuals. Investment can help you match the inflation rate and help you reach all your financial goals; but at the same time it is necessary to consider some of the things before making a final decision.
Now, if you are a first-time investor, what do you do and how do you go about the entire procedure. One of the major hiccups that an investor experiences at the beginning is the idea of parting with money—most of them find it considerably difficult. Some even find it intimidating. But understand that investing at an early age can ensure a secure future which would be good for you; then you obviously do not have to invest your entire money, only a certain part of it will do the work especially when you plan to just start off of with your investment programs.
Fixed Deposits Schemes
Fixed Deposits Schemes usually come with a fixed tenure of investment and acts like a lock within the period. While you can withdraw the money before the tenure expires, it also entails a penalty. So, you need to invest a little more time and then go about investing in fixed deposit schemes.
Investing in Gold
Well, investing in gold is one of the best options. While investing in jewelry might not be the best possible idea, buying gold bars can turn out to be a fruitful investment option. Unlike other forms of investments, the value of gold is always on the rise as the currency rates keep depreciating in value. So, investing in gold will always remain a favourable option.
Life insurance is probably the best and the safest forms of investment for first time investors. Everyone should invest in one or two insurance plans in order to ensure that you are well taken care of while an emergency arises or even as you grow old and retire.
Though comparatively less opted for by investors, forex trading yields some of the best returns as compared to other forms of investments. Most importantly, you can start off with forex with a small capital investment. And in case you have a better strategy planned, you can actually end up making quite a lot of money through forex trading.
Are you a little adventurous and love taking risks even with your earnings? Well, then you can always give a shot to the stock markets; but make sure that you have weighed every pros and cons of the stock markets. You can also approach a broker for the same; however, you have to some in-depth knowledge about stock markets as investing in stock involves more risk than other forms of investments. You might not be able to make profits once while on one occasion you might end up making a fortune out of the same.
Now, if you have a proper long-term investment plan, real estate has the best answers. While gathering the initial capital might be a little troublesome, the returns are undoubtedly the best. In most countries, real estate investment flourishes greatly ensuring good investments.
If you are looking for something simpler, mutual funds are a convenient option. What you have to do is simply choose a particular type of bond and then approach your fund manager. They will do the needful for you.
On a last note, whatever you do, or any kind of investments you plan to indulge in, remember that you need to do a proper homework before making any major decision.