What are the ways you can invest your money ?

 We all know that in today's world how important investing is! In today's article, I will be talking about some of the general ways you can invest your money. 

If you are the kind of person who wants to grow their money, you do not just want to earn money, at the same time you want to grow your money, so some practical ways can give you inflation beaten returns, here one important thing is that you always should focus on creating a diversified portfolio, that means you are not investing your money only one asset, instead of that you are investing your money in different, different assets, so now your portfolio is diversified then your fear would be very less.

1) INDIAN STOCK MARKET: In general, the stock market is a vast field, there is a lot to learn and a lot to know about, in the stock market there are a lot of ways and a lot of places where you can invest your money. The more you learn about the stock market the more will still be left to learn. So, investing in stocks simply means I am talking about buying shares of a company directly. First thing you should learn about how to invest, what are the things you should look upon before, how to analyse a company, just like PE ratio, AUM( asset under management), ROE( return on equity), what is the business model and the future plans of that particular company, how much debt does this company holds! do you believe in the business model or the product of that company! there are still some other things you can take a look at, after researching all the things if you think this company holds some value then, you can invest in that company. First of all, the stock market is not a cup of tea but at the same time, this is not so hard as you think it is, you may have heard from people, news that the stock market is a very risky place to invest your money! the stock market is all about scams! this is not true, the stock market can be a little bit risky place to invest because you are investing in the economy of a country that is fluctuating but it is not a scam at all. If you have desire to invest your money in the stock market to create your wealth then always try to invest for a long time, at least for 5 years, this is the minimum period you have to hold your money at least, but there is no upper limit for holding, you can be invested your money for years just like 20 years, 30 years, 40 years...! don't be a trader, be an investor. The game is all about patience. In between your investing period, you would face some difficult situations, just like the recession in 2008, pandemics like 2019, in all the situations like that the stock market would be crashing but with time it will recover also. Investing in the stock market is one of the fastest ways to grow your money. If you want to see the magic of compounding then you have to keep your money invested for 20 years at least. After that, you will be able to see how money compounds, because if we see the chart of NIFTY50 from the starting point to now then we can see that on average it has been given 12-13% returns. If you want to know more about the stock market then I have written a separate article on that, you can take look at that for further information...https://sujanghoshzz.blogspot.com/2021/07/investing.html

2) MUTUAL FUND: After the stock market mutual funds are the safest option for investing. Mutual funds were created to make investing easy, so consumers wouldn't have to be burdened with picking individual stocks. So if you do not know how to do research the stocks, if you are fearful of doing research, or what if the company you choose wouldn't perform well, or maybe you are indulging with any kind of work or with your profession, so in that case, mutual funds would be the better option for you to invest your money. Your money still will be going to invest in the stock market, the difference between the stock market and mutual funds is that in stocks you have to choose companies for investments, and in mutual funds, someone else would select the companies behalf on you and for that, they would take a charge depends on the mutual funds. If you still have some kind of fear regarding the companies mutual fund managers would choose then you can invest in Nifty 50 or Sensex30, if you invest in any of these two then your money would directly invest in the top 50 companies or top 30 companies depends on the plan you would choose. I have written a separate article on just MUTUAL FUND, you can take a look at that also for further information...... https://sujanghoshzz.blogspot.com/2021/07/what-is-mutual-fund.html

                            

3) CRYPTO CURRENCY: I put cryptocurrency in third place and I think cryptocurrency holds some value, in the future, it will increase. I believe that cryptocurrency should be a part of our portfolio, some of our amounts should be invested in cryptocurrencies, for example, 10 % of the total amounts would invest in crypto. Crypto Currency is all about value, the value of the currencies or the coins, when people think this thing has value and they invest, the value will increase. More than 10000 different cryptocurrencies are traded publically, now the popular cryptocurrencies are Bitcoin & Etherium, so you can invest in these two and the ratio could be 3:1 because Bitcoin has more value or demand than Etherium or any other currency. There are so many reasons out there why cryptocurrencies are so popular? Just like peoples see cryptocurrency such as bitcoin as the currency of the future that's why some people invest in that, some supporters like the technology behind cryptocurrencies, the blockchain because it's a decentralized processing and recording system and can be more secure than some traditional payment system, some peoples like cryptocurrencies because they are going up in value, etc, etc.

4) US STOCKS: I put the US stock market here because as we have seen the companies have grown a lot in the last decades, these companies are basically from the technology sector and the majority of them are based in the USA. If you are from India or any other country you can still invest your money in the US economy. So, if you want to invest in US-based companies because you know that USA-based technology companies are growing but you do not have any idea what are these companies!😕 because you are not so familiar with the US economy, then you can invest your money in FAANG, these five capital letters are the name of the five biggest companies in their own field. These companies are Facebook, Apple, Amazon, Netflix, and Google. If you can do more research then definitely do, otherwise, you can invest in FAANG. The way you can invest in US-based companies is using the Ind-money application.

                              

5) REAL ESTATE: The next investment option is going to be Real estate. It could be a great investment because every year it is growing by 7-9% interest rates. The price of a property is decreased when some kind of recession comes, just like the 2008 recession because when people do not have money, they are not going to buy properties. But here I am talking about investing in real estate means you buy a property from where you will be getting some rental income, the customer can use it for living, starting a business, or opening a shop but you will be generating some income. This could be a way of taking retirement when you have multiple rental properties. It is sure, it is not going to happen within a year, it takes time, 5 years,10 years or more than that. You don't need to lose your patience. All the ways I am talking here it needs patience, years of times then only you can become wealthy. The only problem I am seeing here is that it needs lacs of money at a time. At the starting of your journey, you may not afford that much money but if you save for 5 years at least then you will be able to invest in real estate.

6) NFT'S) In India, the concept of NFT is very new, but in the other country like the US is normal for them investing in NFT'S. First of all, we have to know what is an NFT? A non-fungible token( NFT) is a unique digital asset that represents ownership of real-world items like art, video clips, music, or anything you have created your own. NFT's use the same blockchain technology that powers cryptocurrencies, but they are not a currency after all. You can buy, sell, trade, and create NFT's from online exchanges or marketplaces. The creator or, the current owner may choose a specific price. Or there may be an auction, and you will have to bid on the NFT.

NFT's can be highly speculative assets. Some people have made thousands or millions of dollars selling NFT's. Others may wind up spending a lot of money on a digital asset that winds up being worthless.

7) YOUR MIND) Yes, you have heard the right. I personally believe that our minds, our intellect is our greatest asset. Material things can be snatched, your property could be ruined, your money could be stolen but your knowledge, your intellect nobody can ever snatch from you, it will be with you until your last breath. If everything is taken away from you, you can still bring everything back, that's why we should invest in our knowledge. What type of content we consume matters because it's a type of food we are giving to our minds, so try to watch some valuable content on social media, read books, listen to podcasts on your favorite topics, always try to learn something from everything you are doing irrespective how old you are. If you want to start your reading journey then I have an article on that, you can read that also-https://sujanghoshzz.blogspot.com/2021/07/5-books-for-beginners.html

        

                    LEARNING NEVER ENDS, IT IS A LIFETIME JOURNEY.

                  THANKS FOR READING THE ARTICLE COMPLETELY.