The future can be uncertain. So, the best way to secure your future is to make the best use of what you have in your hand today. We have seen how COVID-19 has turned our economy topsy-turvy within no time. Therefore, making smart investments that make money should be the need of the hour. So, let us discuss some smart investment ideas in this blog.
What is a smart investment?
Investments that promise high returns are naturally risky, whereas the safest ones do not offer the best returns. So, an intelligent investment is a brilliant mix of both categories. So, what is your idea of a wise investment?
- The investment should generate sufficiently good returns.
- It should be safe.
- It should offer high liquidity and be easily accessible whenever you need money.
The following smart investment tips should help you decide on the ideal investment to secure your future.
· Term Insurance
Before you frown at this idea, understand that term insurance secures your family’s future in your absence. It gains more significance if you are the only earning member of your family and have several people dependent on you. Every breadwinner of the family should have adequate term insurance. Start your investment early in life to get the advantage of the lowest premium and the highest financial security.
· Stocks
Investing in the stock market can earn excellent dividends, provided you make the right choices. Secondly, stocks are liquid instruments that can be withdrawn at any time. Finally, today, you have numerous online trading platforms that allow you to invest in small amounts. As a result, you can build up a sturdy portfolio and secure your future comfortably.
· Mutual Funds
Mutual funds are similar to stock investments, with the difference that experienced and professional fund managers handle your investment portfolio. This platform allows you to make small and recurring investments while offering a generous return on your savings. However, it would be best to choose the right mutual fund to invest in, especially as you have a plethora of mutual funds in the market.
· Bank FDs
Bank FDs offer the lowest returns on investment, but they are the safest because they guarantee a fixed return. In addition, senior citizens can take advantage of the additional interest rate banks offer in this category. The significant highlight of bank FDs is their liquidity. Banks also grant short-term loans or credit cards against your FDs to help meet your short-term requirements.
· A Reliable chit fund
Investing in a reliable chit fund can be one of the best smart investment ideas. These instruments guarantee access to funds in an emergency. Besides, they provide decent opportunities to earn passive income. Various online chit funds are available on the market today. Choosing a reliable platform like moneyclubber.com is critical because there are numerous incidents of unregistered chit funds scooting away with people’s hard-earned money.
· Gold
Gold has always been a reliable asset in India for ages. The best aspect of investing in gold is that it offers real-time value when you try to liquidate it. However, it is better to invest in 24-carat gold coins rather than jewelry because the cost of jewelry includes wastage, making charges, etc., which could drain your investment. Investing in gold bonds is also an intelligent possibility.
· Cryptocurrency
Today, cryptocurrency is the craze, with many countries legalizing its use. India is also finalizing regulations for cryptocurrency. Trading in cryptos is smart, but one should know its risks, primarily because they function in an unregulated market. Besides, gains from crypto trading/investments are taxed at the source.
Final Thoughts
Any investment is risky. The higher the returns, the more the risk. Smart investments are those that balance the risk and rewards intelligently. The smart investment tips discussed here can prove helpful to make money with calculated risks.
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