Keeping all your money idle in the bank will never make you rich or improve your financial health in any way. The money that you save must be utilized in a way that will increase your savings. There are lots of investment opportunities around that are safe enough to invest in while offering the opportunity of growing your money. It isn’t always easy to decide where to put your money, so working with a financial planner can prove helpful. Your financial advisor will not only asses your financial condition but will also provide information on the various investment schemes that suit your financial abilities. Wondering what sort of investment plans is available to invest in? Let’s find out.
Debt mutual funds
This is an excellent choice for you if want something that’s low risk. If you want a steady return on your investments, you should look to invest in debt mutual funds. These have slightly higher interest rates than fixed deposit schemes. They are less risky and less volatile and can assure a steady income every year. Some of the most common debt mutual funds that you can invest in are government securities, corporate bonds, commercial papers, and treasury bills.
Equity mutual funds
This mainly involves investing in equity stocks. It is the most actively traded fund and the returns are quite high. However, the risk is high too. You may leave the decision of investing in a certain equity stock in the hands of your financial planner. The rate of return can be as high as 15, 20 or even 25%. But, you will have to be cautious about the timing of your purchase and sale. You can invest both in domestic and international stock depending on the market.
Just like equity mutual funds, direct equity will also provide a high rate of interest. But, the rate can fluctuate according to the position of the company and its market value. You always must monitor the share price of the company that you have invested in. The concept is simple. You buy the shares at a low price and sell them at a higher price. But, it is easier said than done. You will have to study the history of the company, how its shares fluctuate, at what time of the year the price goes down, and so on.
Additional tips to save money
Apart from investment schemes, you can also save money from your daily activities. Here’s what to do:
- Subscribe to discount coupon websites like Plusvouchercode and enjoy an additional discount on every online purchase from top brands and popular shopping sites.
- Pay all your bills and taxes on time so that you don’t have to pay any penalties.
- Allot a percentage of your salary to go directly into your savings account each month.
Increasing your bank balance without finding new income streams can happen in two ways. Either you cut your expenses to enjoy more savings or invest your money in investment vehicles that will yield positive returns. Let your money start working for you.