0Why Should I Invest?
To meet the financial goal in future, create wealth in a defined period and fight inflation.
Where to Invest?
A strongly regulated market to grow your wealth is stock market. Followings investment instruments where you can invest as per your risk appetite.
1. Fixed Income instruments, e.g. Fixed Deposit, Govt Bonds and NSC etc.(ROI 7 to 8.5%)
2. Equity(ROI 15% to 20% CAGR)
3. Real Estate (Complex compliance and huge fund needed, ROI Depends on property location)
4. Precious Metals (ROI upto 8%)
A note on investments
Investments optimally should have a strong mix of all asset classes. It is smart to diversify your investment among the various asset classes. The technique of allocating money across assets classes is termed as ‘Asset Allocation’.
For instance, a young professional may be able to take a higher amount of risk given his age and years of investment available to him. Typically investor should allocate around 70% of his investa- ble amount in Equity, 20% in Precious metals, and the rest in Fixed income investments.
