Investment has become quite crucial in today’s dynamic world. Expanding your financial assets and earning great returns via investment has become a way of ensuring financial stability. There are plenty of ways in which you can invest your money- you can buy shares, invest in top mutual funds and whatnot. But before you invest your money, you need to do proper research and look at all your options carefully.
To make investment easy in early 2020, you can invest your money in any of the following options.
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Stock Market:
It is inarguably the most popular and common way of investment. The trading of shares of a company takes place in the share market. When a company wishes to raise money from the public, it makes its shares available for the public. Many people use their tax refunds to purchase stock. When you buy some stocks of a company, you then own a small portion of that company. If that company then goes on to earn some profit, it will pay you a portion of that profit. As the company grows, the value of the shares also grows. When this happens, you can sell your shares to earn some profit.
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Mutual Funds:
This is another popular mode of investment in which multiple investors pool their money together to buy securities. A mutual fund is managed by a portfolio manager who further allocates the pooled money into stocks, bonds, and securities to earn profits. A mutual fund provides diversification, as instead of only investing in a single stock, your money is invested in a basket of stocks, reducing risk to a great extent. Investing in mutual funds also has some tax benefits.
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Investment Bonds:
An investment bond, or a bond, is a kind of debt instrument that represents that you are loaning money to a company or the government. An interest rate is fixed on the money invested. When the duration of the bond’s lifecycle is over, the company/government will pay you back the amount with interest. There’s less risk involved with such kind of investment. However, the return is also lower.
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Deposits (RD or FD):
This kind of investment is pretty much risk-free. You put your money in a fixed deposit or recurrent deposit for a fixed period. The return is not that great, but it is a great way of saving money that can be further used for other investments or in case of emergencies.
The investment landscape is ever-evolving. Motilal Oswal is one company that is completely in-sync with the dynamic world of investment. It has one of the best investment apps which you can use to invest your money. With Motilal Oswal, you can invest in top mutual funds, trade stocks and do so much more without any hassle.
