Most of the people concentrates on investments for their future to overcome financial risks incurs especially at unfortunate times. So, they focus on essential investments that secure their life. But selecting the right investment that suits their needs is very important on for an individual on these days.
Let’s discuss in detail about it;
- Initially knowing about key differences between investing and gambling is required for an individual. Basically every individual should concentrate mostly on risk free investments. Taking this point into notice, many financial institutions are introducing different types of investments. Based on your requirement, choose the right investment plan. For example, Holborn Assets provides wide range of effective solution in terms of investing to their clients eventually and especially they propose you investments like that meets your requirements essentially.
Here are some of the key points to note before planning for investment according to experts point of view:
- Before going to start your investment, you are supposed to check what is the right investment that apt your ideology. You can go through different stock investment news channels like CNBC. Just listen to analysts and their ideas about its current stock market pros and cons etc.
- Many analysts clearly state that mutual funds is the best source of investment in stock markets. Correspondingly, you need not worry about real estate business. Actually every individual will try to focus on real estate as the primary mode for investing their valuable money. But according to experts, they propose that this real estate is not such a smart source of investment. May be this might be the reason as it may rise and even it may fall as well.
For example, some of the investment plans like liquid funds, ultra short term funds, short term debt funds, equity linked saving scheme, national pension scheme etc.
- Liquid funds offer reliable liquidity. It is very less temporary compared to remaining debt instruments. These funds invest especially in short term money market instruments. It includes term deposits, treasury bills etc.
- Similarly ultra short term funds are nothing but termed as fixed income investments. These funds let the individual investors to get rid of risks featured in interest rates.
- Coming to short term debt funds, it actually invests on money market instruments, CD (certificate of deposits) etc. This fund maturity period is around 1 to 3 years.
- This ELSS scheme is an integrated form of both equity and saving of tax. Here being an individual if you invest some money, this investment money will rise when the stock market reach at the peaks only. This fund has a term period of around 3 years.
- This national pension scheme is essentially introduced for all the senior citizens. This scheme is especially utilized by government employees. Here being an individual, you are required to deposit minimum of amount 500 rs/- per month and 6000 rs/- per year and it is entirely tax free. This scheme is most reliable scheme for the government employees especially. It is essentially risk free form of investment.
Conclusion: Hence from the above discussion point of view, investing your money on stock market in terms of basic investment plans is well and good. But selection and implementing of your investment plan that suits your business is very important. Especially it should be risk free mode only.