Learn about the smart ways that can help you grow your money
In today’s scenario, investing your money is very important as just earning will not suffice your needs. You work really hard to make both ends meet. But, do you think that it is sufficient for you to accomplish your goals? For this, you need to invest wisely to get a good rate of return. If you are not investing, you are missing out on a lot of opportunities. Now, the question is what is investment? Investment is an act of allocating your money with the expectation to get profit. This can be done by starting a business or purchasing a property to invest with the hope to resell it at a higher price to make a profit. In addition to this, investing in a health insurance policy is also a wise decision. The main objective of investment is to buy a good that is not consumed today; but, it can be used in the coming years to generate money.
Types of Investment
Investing your money in the right thing can allow it to grow. Investing in the right options in India can help you in living a secure life. With the help of the best investment options, you can make a difference in your wealth. There are many investment options that have been used for ages, while there are newer options that have gained popularity in recent years.
Mentioned below are some of the most popular investment options that are available in India.
• Stocks: These are considered as the long-term investment and are the most preferred financial assets in the country. When you buy stock from a company, it allows you to engage in the company’s growth. These are offered by the companies and can be bought and sold on the stock exchange.
• Mutual Funds: These are the financial vehicles that are made by money of investors to invest in various instruments such as stock, bonds, and other assets. Mutual funds are flexible financial vehicles where you can start and stop investing according to your choice. You can also redeem investments from mutual funds any time.
• Public Provident Fund (PPF): This is a long-term financial asset that has a lock-in period of 15 years. It also helps in tax-saving that allows you to build a retirement corpus apart from saving on the taxes. If you are looking for safer options and wants to earn returns that you must opt for a PPF account.
• Health Insurance Policy: Apart from these above mentioned investments, getting a health insurance policy is also a great investment. It helps you to accomplish your financial goals and save on income tax every year. You can opt for a health insurance policy from Care Health Insurance (Formerly Religare Health Insurance) and avail a number of benefits.
There are certain norms as per the Section 80D of the Income Tax Act that allows you to get tax exemption, depending on the premium paid for yourself, dependent parents and spouse. A good health insurance policy covers hospitalization expenses, offers cashless treatment and other facilities that saves a lot of money.
Why you should invest your Money?
• If you invest your money today, it will increase in the future. The financial assets offer returns on the money over the long-run.
• If you are working, you should always save money for retirement. You can put your savings into various portfolios such as stocks, real estate, and business. After retirement, you can make the most of the funds that you get from the investment.
In a nutshell
The basic rule to make a smart investment is to get a complete understanding of different types of
investment options. It is wise to invest in investment options that can create attractive returns in the future.
Firstly, it is always suggested to get the right investment that suits your requirements. Make sure to invest after doing proper research. Review your stock and mutual funds regularly. Avoid investments that are difficult to understand. Also, consider tax implications on returns that you earn from the investments.
You have learned enough about investments, it is now time to invest and create wealth.