TYPES OF INVESTMENTS
TYPES OF INVESTMENTS
Money plays a key role in every human life. In the current situation without money there is no value for human beings. Such money we can earn in two ways
- Job or Business
- Investments, to get extra wealth
Enhancement in technology and awareness about diversification of money came with a wide variety of investment platforms. Now, we can learn how to invest your secured money.
With the help of your hard earned money, you can invest in different platforms like:
- Investment on land
- Metal Investment (Gold , Silver etc)
- Fixed Deposits, Post office
- Mutual funds,
- Stock market.
So, let us discuss above all in Detail:
Investment on land:
| Merits | Demerits |
| Regular income stream in case of rented | Need huge capital |
| Security as an asset with appreciation in value with time factor | Legal difficulties |
| Can avail loan against property | Maintenance cost |
| Tax benefits on long term profits and also rental revenue | Property taxes |
Metals like Gold / Silver:
| Merits | Demerits |
| Gold investments are better to hedge against inflation | Issue with storage being a precious metal |
| Traditional investment and desired commodity | Prices are set by international markets |
| Hold its value over period of time | No tax benefits |
| Mostly appreciable asset | May have chances in buying less purity gold with lack of knowledge |
Fixed Deposits / Post Office:
| Merits | Demerits |
| Fixed and guaranteed returns | Low rate of returns |
| Safe | May not enjoy the benefits of diversification |
| Very flexible 1,3,6 months, 1,2,5 yrs | No tax benefits |
| Liquidity | No loans can be taken once we cancel F.D and if any loan taken against F.D , we can’t cancel until we repay all loan amount |
Mutual Fund:
| Merits | Demerits |
| Easy to participate | Subject to market risk |
| Achieving financial goal is easy | May incur expenses for promoting fund scheme |
| Regulated and monitored by SEBI | ELSS funds have lock in period of 3 years |
| No need of knowledge and updating in markets | Liquidity of funds takes 2-3 working days excluding liquid funds |
Stock Market:
| Merits | Demerits |
| Easy to participate | High volatility |
| Unlimited opportunity of investment | Need patience |
| Economic stability in long term | Need knowledge for selecting stocks |
| Investment opportunities to small savers | Need for updating in news and events related markets |
Start investing in Stocks and Mutual funds
Click on the link to open DEMAT account instantly: CLICK HERE
