Investments build wealth for you and investing easily becomes a habit. If you are earning, you can invest. Start with regular savings in traditional investments and use the capital of ?10,000 - ? 20,000 for better investments.
Do not be discouraged by the term 'risk.' The word may sound alarming but understanding its range will allow you to spread your investments encompassing low, moderate, and high risk. Small risks with small capital, in both the short and long term, are smart ways to grow your wealth. Let us check the options.
1. Mutual Funds
If high-risk investments attract you, start investing in the stock exchange through mutual funds. You can make small to midsize investments. Start with SIP (Systematic Investment Plan) as a beginner. Stagger your investments regularly in equity mutual fund schemes for a term. This saves you from investing lump sums and is a better way of investing for salaried investors who can create wealth over a long-term period. You can start with an investment of ? 500. But be mindful of the risks and keep a good watch on how the investment is progressing.
2. Corporate Bonds
As some are aware, corporate bonds issued by private and public holdings use debt funds from investors. By maintaining a fixed period of return, you can generate passive additional income. The interest rate is much higher than traditional investments at reduced or low risk if you are funding on A+ bonds. Although the investment capital is high, you can invest in these bonds from brokers or banks. You can alternatively choose investment platforms that invite investments in bonds as low as ? 10,000. You need to have a demat account for this investment.
3. Sovereign Gold Bonds (SGBs)
Government securities, SGBs are substitutes for holding physical gold issued by the Reserve Bank of India (RBI). The investor buys a quantity of gold, through the bond. At maturity, the investor is redeemed according to the ongoing market price. It is a superior alternative investment to holding physical gold by eliminating risk, cost, and storage. This investment, though market volatile, does not let you lose the gold units you invested in. Individual investors can purchase a maximum of 4 kgs of SGBs. The rate of return is 2.5%, paid twice a year. SGBs can be purchased from banks, post offices, stock markets or through agents. You can start with an investment of ? 20,000.
4. Inventory Financing
Companies invite financing for scaling their business. You can invest in assets that the company needs for its manufacturing or assembling components. This investment idea is based on crowdfunding where investors back the company with low investments of ?15,000. The company uses these funds to create an inventory and, at the same time, scales business. In return, investors receive a pre-tax IRR of up to 12%. This is an alternative approach to passive wealth creation. These companies can be startups or midsized companies aspiring to grow on this financing model.
The value of money is never stable, so you need to look for ways beyond the savings account to make your funds grow. Start looking at alternative investment sources that will compound to high returns. Risks may always be a concern, so if you are a cautious investor, start with low-risk investments. Grip is a digital investment platform for tech-savvy smart investors, offering low to moderate-risk investment options. You only need to invest a fraction of your savings to get attractive returns. Follow https://www.gripinvest.in/ for complete insight.