Investment and growing money is easy if a person is aware as to where and how they can invest their money. Here are 10 ways in which you can grow your money in 2023:
1. Direct Equity – Equity refers to shares in a company. Investing in equity can help you grow your money as equities is the primary investment avenue for long term investors. Individuals are required to pick an equity listed in the stock market. The fundamental analysis of the company is a crucial factor while investing for the long term. For a short term investment, the time of investment plays a deciding role in the possibility of earning returns.
To invest in equities, an individual must have a Demat Account.
2. Equity Mutual Funds – Like the name suggests, Equity Mutual Funds invest in equities in the stock market. For a mutual fund to qualify as an Equity Mutual Fund, 65% of its assets have to be invested in Equities. The Equity Mutual funds are managed actively or passively. Actively traded Funds' returns depend on the ability of the fund manager and have greater risk/reward in comparison to Index Funds are passively managed and its value lies on the performance of the underlying index and is a relatively safer option.
3. Debt Mutual Funds – Debt Mutual Funds invest their assets in treasury bills, Government Bonds, Corporate Bonds, corporate debt securities and money market instruments. These Funds are relatively safer as they are not a volatile asset in nature and tend to reward the investor with steady income. It is suitable for investors looking for relatively safe investments. Change in interest rates have an impact on the earnings of Debt Mutual Funds.
4. Fixed Deposits – Fixed deposit are a suitable investment tool for risk-averse investors. Financial institutions like banks rewards fixed depositors with a higher rate of interest in comparison to savings accounts. In the case of Fixed Deposit, the investor has to keep the money in the fixed deposit till the maturity period and cannot withdraw the money before the completion of period of maturity. Breaking a Fixed Deposit before maturity can levy charges on the investors.
5. Real Estate – Real Estate is among the fastest-growing sectors in India. The investor has the benefit of capital appreciation with the passage of time in the long-term and can enjoy rental yields in the short-term. Investing in real-estate requires significant amounts of capital compared to other forms of investment. Investors with a small sum of money can look-into investing in real-estate through portfolio investments where funds are collected from a pool of people and returns are distributed among the investors.
6. Gold Bonds – Gold Bonds are issued by the government and its value is derived from the gram value of gold. The Gold Bond is issued by the RBI on behalf of the government and is a substitute to holding physical gold. The investor pays cash for the issue price of the bond and can redeem the bond for cash on its maturity. The value of gold has been on a steady increase over the span of years and has little impact from the volatility of the markets.
7. Crypto – Crypto is based on blockchain technology which uses the decentralized system and has the potential to transform the current methods of technology in the world. Identifying and investing in crypto-currency tokens whose blockchain has real-life applications in sectors such as gaming and entertainment can earn good returns for the investor. But, crypto is extremely volatile in nature and requires that you are cautious and well informed before investing in Crypto.
8. Post Office Deposit – Depositing money in the post office under various schemes with differing periods of maturity are offering higher rates of interest compared to leading banks. The Kisan Vikas Patra is claiming to double depositors money. The Public Provident fund is yielding 7.2% reward with a lock in period of 15 years while the Senior Citizen Saving Scheme is yielding 8.0% with a 5 year lock in period. The rates of interest offered are attractive and the official website is confirming the yield of investor.
9. Digital Economy – The number of people adopting to use the internet is ever-increasing creating avenues and possibilities to earn money online. Starting a side-hustle online can contribute to your earnings. Some common techniques are Freelancing, Digital Marketing Agency, E-Books, Online Courses etc can help you earn. The benefit of writing an E-Book or an Online Course is that it requires your time only in its creation after which it can be a perennial source of revenue which can be automated and doesn’t require day-to-day attention.
10. Tracking Your Finance – Tracking your expenditure will help you identify necessary expenses and desired expenses. Cutting back on your desired expenses can help you save more which can be invested or stored as an emergency fund. Tracking your expenses will help you avoid unnecessary subscriptions and charges could be on auto-debit. Keeping track of your expenditure and your income will place you on better footing grow your money.
Investing money has its rewards but also involves an element of risk. Ensure that you are well informed before you take any financial decisions.
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