Ever wondered how to purchase that dream house? Or to take that vacation you have always wanted to? Most people have certain goals, they desire to fulfill. Yet, in most cases, these goals seem to appear farther and farther because of finance. With a limited salary or even expenditure of several things, it is difficult to save. Sometimes, saving money itself in the bank account may not be enough to ensure security in the future. This is why it is preferable to invest one’s savings. It ensures higher returns. Therefore, here are some best investment plans to save your money.
BANK FIXED DEPOSIT:
To some, it may not appear to be much of an investment. Rather people might consider this to be a way to keep aside the money for future use. This is partly true although not completely. Fixed deposits are like a financial instrument. The rate of interest offered is higher than the regular account of savings. The key aspect here is that once an individual has a fixed deposit, s/he cannot withdraw money before maturation, unlike the savings account. This helps to ensure that the money is safe and the investor will receive the total amount at the time of maturation.
The tenure of fixed deposits can go as high as ten years. Thus, according to the needs, investors can decide the duration of fixed deposits. For example, if a person is planning to invest in the child’s future education. S/he goes for a fixed deposit for 4 years. At the end of this period, the amount will be much higher than the one invested. This can be used for the actual purpose.
To understand an equity fund it is necessary to know about the mutual fund. A mutual fund refers to a company that involves investors and the amount they provide is invested in stocks, bonds, etc. The investors purchase shares in mutual funds. Thus, an equity fund is a type of mutual fund. The money is primarily invested in stocks. However, the mutual fund can charge a certain rate. Although, the value of the stocks might go higher. As a result, the investor will still receive higher returns than the initial amount.
For instance, a person gives money to the funds for investment in stocks. According to the gains or losses, the person will get the returns. However, s/he has to be sure and have some accuracy before going to this type of investment. Prior knowledge and advice might be useful to ensure more gains and thereby save money.
DEBT MUTUAL FUNDS:
Debt mutual fund involves the investment into corporate bonds, fixed income securities, and others. Individuals often regard debt mutual funds to be financially secure investments. This also lowers the chance of losing one’s savings. It generates more wealth in comparison to other ways of investments. Debt mutual funds also offer more stability than the equity fund. Because the equity funds involve the performance of stocks. Subsequently, debt mutual funds help investors to diversify their investments. An instance could be that of an investor investing in corporate bonds as well as debentures. They usually refer to a long period of security with a fixed rate of interest by the company. With security against assets.
This is another major investment that helps to ensure greater returns. However, one aspect must be kept in mind. Buying a house to live in is not a real estate investment. On the other hand, buying some other property like an area of land can be an investment. There are two major factors here- capital appreciation and rental. Either way, the investor has to ensure the appropriate location of the property to ensure greater returns. An example could be that of an investor who buys a property. Five years down the line when prices and demand increase, s/he can either sell it at a higher rate. Based on the policies the person can also give it for rental use. This will ensure greater returns. The saving being used for profit.
To conclude, proper planning can help individuals to ensure higher savings. The right investment will help to generate greater returns. It might also reduce the risk of loss in any form. The right financial investment is also crucial to ensure a kind of financial security for the future. Hence, they help investors to generate profit and manage their finance according to that. Individuals can go through all the forms of investment and then select the one that suits their plans the best.