Easiest way of investing for middle class

Easiest way of investing for middle class

investment for middle class

Investment is the biggest park of our life we always have to invest anywhere doesn’t mean we are doing small investment or big because everyone is become big after starting with small investment.

Investment doesn’t need hard work because if you want to do a good investment then you need to do smart work and annals about where i need to invest which gives me good amount of returns.

You need to invest as soon as possible if you have a low income then make you many source of income where you do less work and it will give good income then which money you are earning from other source invest that money to make more.

 Invest in that thing which is easy for you and you can understand it easily and always think how I can make my more income source because when have a enough income for your family then you can invest easily in any thing

Investment options

Before invest any where you have know the concept of risk vs return

Risk means chances of losing money which money you are invest may be you can lose it

Returns means money earned from investments

Types of Investment

High risk / high return

Low risk / low return

Medium risk / medium return

People have fear of these concepts and they never invest in any where any they just think about savings but if you want take your life on next level then you have to learn about investing.

I will tell you the 3 easiest way of investing

FD, fixed deposit

It is the safest way of investing and it is so common way of investing a lot of people invest in fixed deposit but the problem with FD it is low risk low return.

How FD works

If you want to invest in FD then you need to visit your bank and every bank has different rules of investment.

 When you invest your money in FD then bank use your money for invest in other place because when a lot of people invest small amount money at the end it become huge amount of money and then bank invest it in the difference ways.

That’s why bank takes you money for fixed time of tenure as long as you want and the bank will give your return after the fixed period.

Every bank has tenure some bank take your money for 1 to 2 years or some takes your money for more years because if you give them your money for many year then bank can earn more money.

 Many banks gives you opportunity you can refund your money whenever you want between the fixed time periods and bank you your money with interest.  

  Benefits of FD

Returns from fixed deposits are higher from bank account because bank account never cross inflation and you will go with negative cash flow with bank account that’s why FD is better than saving bank account.

 As longer the tenure as higher the return will be become higher of FD policy.

Real estate

It is the high risk and high return

If you want are living in the rent house then you have to take some serious decisions and action to buy own house it doesn’t mean a big house at least your own house where you and your family live in that house nicely and you don’t need to pay rent.

If you will buy your own home through home loan or you takes a loan from your relatives then you can pay your loan by which money you are spending as a rent and few year you have do less expenses and make more money to pay your loans.

You have to do more hard work and generate more income source and spend less money so you can pay your home loan earlier from the tenure of your loan and as soon as you will finish your home loan you will live less stress free life and invest more money to generate more income source.

Or

If you have your own house and you are thing about investing then invest in the shops because it will give you good returns according to apartment or a plot.

If you buy apartment then you have to pay for his repairing and maintains and if you buy plot then you have to wait at least three to five year or may be more for good returns.

   If you buy shop then you will give it for rent and you can earn every month good amount of money and you don’t need to think about maintains.

If you want to start your own business after sometime then you no need to take a shop on rent and you can start you business with in less money because in every business shop rent is biggest disaster of the profit.

  Mutual fund

Any mutual fund company takes your money and the company invests it in many other ways like stocks, real estate, bonds etc.

 Mutual funds are more risky if we compare it with fixed deposit, real estate investment

      Mutual funds are high risk here because it all depends on sensexand nifty some time it can go            30% up or may be 30% down some time it goes 50% up and 50% down it all depends on market        condition.

If we talk about on an average returns then you can earn 13% to 15% from mutual funds.

If we talk about how we can return our money from funds then you can sell it any time.

Why we invest in mutual funds 

If you want to take low risk and high returns then you can invest in mutual fund. If you don’t have knowledge of stocks and you don’t want to participate directly in stocks then you can invest in mutual funds.

Mutual funds gives you low risk and high return due to mutual funds invest in multiple stocks and these stock are selected by specialist here you will see the expertise of specialist which you don’t have right now or you don’t have a time to research.

So mutual fund is good option if you want to earn good returns. If you are looking for 5 to 10 year returns then you will defiantly beat the inflation easily.