There are a lot of investment options for people who want to invest their money to make profits on it. Property dealing is one of them; Reits means real estate investment trust. The purpose of creating this trust is to found a company that owns and manages a trust related to the deals in the property business. The REITs provide an opportunity for you to own and enjoy the right property for yourself.
Current status in India
There are shares of REITS in the stock market for investors to follow and invest. Its market share has risen in India over the years. REITs market capitalization is compared with the overall real estate market capitalization. In India, the market capitalization of REITs is at 29%. The advantage from REITs is, it lets you invest in real estate in the stock market and earn the gains. The investors stand to gain from the sale and purchase of real estate property but they are doing it virtually. They are not doing it in real-time. REITs invest in all types of properties that include offices, infrastructure, hotels, etc.
Anybody can start investing in stocks. Investing in stocks is not a tough option. But it’s better if someone manages the portfolio for you. If you want to invest in stocks, you need to have a separate account for this. You should start investing in stocks because it will open up another front of income for you. Investing will help you to grow your wealth. You can meet all your financial goals and you will find your purchasing power go up. If you have some spare cash, you should invest in it so that it works in your favour and generates some income for you. There are risks involved because of the unstable market conditions. the market rebounds over time, and once it does, whatever losses your investment has incurred will be balanced.
Earning money is not enough in today’s world. If you wish to lead a comfortable life after your retirement or meet the emergencies that come uninvited, you must try to make your money work for you. Your money remains without any use in the banks. You must invest it wisely. If you do so, you will get smart returns and all your dreams will be fulfilled. There are different investments available in India.
Stocks
Stocks are the most popular options in investing in India. Stocks are in a way the shares of a company that you buy. For investing in stocks, you need to have some knowledge of the companies and how they function.
Property Investment
If you have a larger amount of capital stored away and want to invest in something a bit more long term, property investment can be a great way of forming a financial backbone for any successful investment portfolio. Not only is the asset type typically less volatile than others, but if investing in an area that’s in-demand, you can stand to make steady growth from surrounding regeneration and area development.
If you want to get something back from your investment to then put towards other investment strategies or to funnel into your own projects, you might also opt for a buy-to-let investment strategy – renting the property out to tenants and making a regular income stream from rental payments. In their guide to real estate investing, RWinvest state that “buy to let property investment is one of the most lucrative ways to make the most out of your savings, and more and more people are now seeking out advice on getting into property investment”.
Mutual funds
Mutual funds operate based on a pool of money created by the investments of many investors. There are different types of mutual funds and all of them invest in different sectors. There are equity mutual funds that invest in stocks. These investments are fraught with the risk of making losses. There are other mutual funds known as hybrid funds. These funds are a mix of debt and equity funds. it is quite convenient to invest in mutual funds because you can begin investing and stop at your will. These are flexible financial instruments. There are tax saving mutual funds also.
Fixed Deposits
You deposit your money in the fixed deposits for a fixed period. If you are averse to risk and you have no experience of investing in the financial market, you can opt for fixed deposits. Generally, fixed deposits are given by the banks. there is a fixed rate of interest on the deposits that you make in this instrument. The rate of interest may change over the years as per the economic policies of the government.
Recurring Deposits
Recurring deposit is another good instrument of investment where your money gets compounded. There is a recurring rate of interest that your money earns. Like an FD, it also has a fixed timeline of investment. You keep investing a small amount every month in your bank account that gets accumulated with interest earned.
Public Provident Fund
It is a government-backed deposit scheme and it is for a long period. Only one PPF account can be opened per person. There is no joint account system in PPF. The earnings from this account are absolute without any taxes charged. It can be ended at the end of 15 years.
Employee Provident Fund
EPF is an investment that is having its utility for retirement benefits. EPF fund is contributed by both employer and employee. The corpus that is built by the EPF is tax-free. The rate of EPF is fixed by the government of India.
National Pension Scheme
The National Pension System earns a higher interest rate than PPF and EPF. It is not entirely tax-free. In this system, a part of the corpus is invested in the equities. The money earned there goes to benefit the investor.
You should decide with prudence as to which investment vehicle you should use to make your money work hard in your favour. Wrong investment can lead to financial losses for you. Your investment is decided by your age, goals of life, investment planning, and so on.
Conclusion
You should choose your investment vehicle with lots of care. There are so many options for investing your hard-earned money. If you are unable to do the planning and investment, you may take the assistance of someone who is a professional investment planner or agent. He will help you decide on your investment.
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