I WANT TO INVEST INR 2 LAKHS. WHAT ARE THE OPTIONS?
In this roughened and toughened world, people out there keep chasing money-making methodologies everywhere. Ranging from tiny to huge, any money-earning hustle is picked up by someone. Money makes many things is a proverb, but making money is difficult and it is the reality.
So it is very important to learn and apply money-saving tactics which would be of helping hand in the toughest time of life. Saving money is as important as earning money.
Saving money simply doesn’t mean not spending money and just stuffing it into a locker. Saving money includes investment and purchasing value-expandable products as well.
Some multiple strategies and schemes help one to invest and save money in a less risky way. Here let me give a glimpse of a few investment techniques that would be of great help.
- Investment in immovable properties:
First of all, one needs to know what immovable property means.
Immovable properties are those that are affixed to a particular place or so. In clear, land and anything that is being constructed on the land will be considered immovable property. Say, for example, if you own land and have constructed a house over that, then it is your immovable property.
Now, let’s have an idea about investment in immovable properties.
Investment in any immovable property is quite less risky and highly beneficial if it is being invested in the right region. The right region here denotes places that are in developing bands economically and commercially.
Investment in immovable properties especially on plots rather than constructed buildings is advisable. This is because lands don’t depreciate as days pass on. Yes, if you are buying land in a developing zone, then its value tends to increase with days as the development of the zone progresses. Even if there is no development, still the value of the land remains almost the same but not decreased. So, it doesn’t let your money bury down in any case most probably.
Investment in constructed properties says buildings, etc., is also great as it can earn you income. But, how? If you buy a house or a warehouse along with the land says example, then you can rent or lease it to someone which will add to your income. On the other side, you need to understand that when you purchase constructed property along the land, you tend to pay more than just for paying for land. And also the value of land doesn’t depreciate but the value of the constructed property will depreciate. But again it is compensated as you gain an income out of renting it.
So, it’s up to you to decide which kind of immovable property to be claimed as an investment. But anyway, it is a very low-risk investment if you are free of any impending legal marks, if.
- Investment in gold and silver:
Gold and silver, in the current scenario, seems to be increasing in price day by day. As we see, the price of it keeps hiking every day and so it becomes a valuable investment right now.
The investment in gold and silver is beneficial but still holds risk too. This is because no one can guarantee that the rate of gold and silver will never decrease. So, how this investment will be beneficial then?
The investment in gold and silver will become beneficial only when the investor has a knack to handle it. Yes, currently, the price of gold and silver is increasing. If you possess money and purchase it now, you will find an increase in value every day. If you find at any point that the price is decreasing, immediately you can sell it before the price drops below the amount of your purchase. So, here you gain profit, only when you follow the price hike and decrease regularly. The gain of the investment over here would be less when compared to that of the investment in immovable properties.
- Fixed deposit:
Hopefully, everyone already knows what a fixed deposit is. But again just a small outline here.
Fixed deposit is a kind of deposit where you deposit a lump sum of amount in a bank for a long-term tenure say 5 or 10 years. In return, the bank will provide your interest for the deposited amount which you can either withdraw whenever you want or you can accumulate and get the same along with the deposited amount when the tenure ends.
The risk factor behind fixed deposit is zero as at the end of tenure you will get your deposited amount along with interest. But, you will have to cross-check many banks before depositing to know which bank provides you with better interest so that you could make a good profit out of it.
- Recurring deposit:
What is a recurring deposit?
As the word itself says, a recurring deposit is a kind of deposit where you deposit money in regular intervals over a span of time and gain profit through the interest on your deposit. This feature is highly provided in Indian banks.
The principle behind the recurring deposit scheme is very simple. You deposit a certain amount of money at regular intervals in a bank, and the bank will utilize it for its purpose and in return, it provides you interest over your deposited amount. It is quite similar to a fixed deposit, with only one difference. In fixed deposit, you deposit the money at once for a longer term, say 10 years, and will gain interest which can be withdrawn whenever needed. But in a recurring deposit, you don’t deposit a huge amount altogether instead you deposit every month or so in regular intervals and the bank provides interest every month based on the added-up sum of the deposit.
The advantage of a recurring deposit is that you can have a short-term investment of 3 months to a multiple of 3 until 10 years in an agreement.
Not a disadvantage but a grip on your amount would be that, you will not be able to withdraw any amount from a recurring deposit account until the tenure is over. If you happen to withdraw the money before the end of tenure, then you gain no interest and you will be given only your deposited amount so far.
But anyway, it doesn’t hold any risk. It’s absolutely risk-free.
- Equity shares:
Whenever a company needs to develop it requires capital and investments. But at some times, the requirement of investment can be a grand amount. In those scenarios, a company can divide its ownership into a certain number of units. These units are called equity shares or common shares.
Equity shares are usually released in stock markets where an individual can purchase the interested number of shares of any company. The shares purchased can be availed by the investor until he wishes to sell them back usually for profit.
The exact strategy behind buying an equity share is that you invest a certain amount and buy the shares, and the company utilizes that amount for its development and capital necessities. As the company develops positively, the value of the share keeps increasing in the stock market. There are two options that the investor can adopt. One is buying the share at a lower price and selling it back when the price of the share hikes. Another option is that the investor can buy a share in any developing firm that has begun its journey and hold it for a very long term which will eventually provide high returns or turn to be an asset.
The shareholder will have the authority to put forth their ideas in the company’s decision-making processes. Higher the percentage of shares, higher the authoritative power. Holding more than 50% share of the same company will make the investor a partial owner of the company.
As much advantage it possesses, so much risk it has too. There is no surety that the share price will never drop. It can also happen as the company faces a downfall which automatically pushes you to loss.
But still, holding a share for a short time and selling at the correct period with a high value will be a wonderful play in the stock market.
With all these investment tips, analyze, research, and decide the right option that suits your necessities and expectation.
Let your investment progresses in a positive direction.