Today we will discuss the best investments and good returns plans at the age of 18–30. If you have any questions or more information, you can write in the comment box.
There is little risk in investing as well as profits are good. So let’s see where we can invest. There are lots of investment plans like PPF, FD, GOLD, etc. in the market. Now this time we are discussing a bit risky but gives of good returns than others.
So the first one is the stock market or Equity Market:
We have heard too much about the stock market, and many people say it is a gamble, but they didn’t know how much of a profit can be made from this market. If this were a gamble, then Rakesh Jhunjhunwala and Warren Buffett would not have been exposed to all the greatest investors and wealthy people of the world.
When we invest money in a company, then we are a few per cent partners of that company. If you understand the company business pattern, so you should invest in that business nither it will better you don’t invest in an unknown company(stocks).
There is some risk in the stock market, but we can reduce that risk to a great extent. You should not invest your all money in one stock. You should invest that money in different stocks. So that even if a company closes, the rest of your other stocks will easily recover your loss and they get you in good profits.
In the Stock Market, the stocks will give you multiple times of returns, but you have to choose good stock with the best analysis. You should invest your money for long term purposes like a minimum of 3-5 years or more than ten years is most important.
Mutual Funds handled by an asset management company(AMC). The fund manager works to invest the money of investors in Stocks, Bonds, Debt Funds, etc. And he charges a few amounts of commission like 0.60 % or maybe till 2 percent from you.
AMC’s invest your money in the best stocks with good analysis and share your profits to you as 10-22% in a year which is better than FD’s and other investment classes with low investment amounts. You can start your Mutual Funds from rs500 only. Your money will increase in the form of compounding interest. If you new in the market or if you don’t have enough time to analyze stocks for investment, so you should start your investment in Mutual Funds.
To raise the company business or expand their business, the company raise funds by EQUITY MARKET or issuing its DEBT instrument. In the debt instrument company raises funds on loan. So the major source of taking a loan from bonds or debentures. The company rises lone in the from bonds and gives a fixed rate of interest to bondholders.
bonds are mostly provided by the government. Therefore, it is more secure and its returns are also less. The bonds are returns as 6-8 percent. The reason to invest in bonds because your portfolio should be diversified in different investment sectors.
This was article on Types of investment in the age of 18-30 for better returns.