WEATLH MANAGEMENT

WEATLH MANAGEMENT:

You must be confused about investing your hard earned money .This is apparent because now a days there are so many options with lucarative offers but lots of twrms and conditions . So  you should be quite careful before putting your money into such an offer.After reading this article you will have a good idea about various ventures to explore and what are their pros and cons.

I will tell you various options of investment which are rated on the basis of two things.

i)                    Risk factor.

ii)                  Return from the investment.

i)                    Fixed Deposits:  Fixed deposits are good options for investing your money .You get a return around 6 to 9 percent. Their risk factor is zero .You can deposit your amount in any bank for a fixed amount of time. You are also having the option of compounding your interest or you can reinvest your amount. Normally the fixed deposit of longer period offer higher interests .You also have an option of permanently liquidating your fd at any time but in that case the interest you are getting may not be according to the commitment,

ii)                  Mutual Funds:  There are so many mutual funds available in the market that its very difficult for a normal investor or a beginner to chose a good fund. According to my opinion going in for a sector wise fund is a good option For example if one knows banking sector is going good and has a bright future then you have just go in for two or three best banks to invest in. Diversification in the portfolio is good but  up to a limit which one can handle because in that case you can loose track of your investment.

Mutual funds offer returns higher than fixed deposits but here risk factor is also more as compared to them as your investment returns are more dependent on market index.

iii)                ULIPS: You might have heard a lot about them and many investment companies bragging about them but they are no better than the options as discussed above as it is an investment plus insurance. The better way to go about it is to invest in a mutual fund and take insurance separately.

In this part of your money goes in for investment i.e it goes in market and the other part for insurance.

 They are disadvantageous in the way that they do not provide flexibility .

iv)                Trading: Directly investing money into some company by being its shareholder and buying its shares is the most common mode of investment .No doubt it offers a higher return of investment than the other options as discussed above but the risk factor is equally higher.

                        

                 Various options are available in trading also  for eg. Commodity trading, Cash,                 Forex, Gold trading etc.

              In this kind of investment its very important to study fundamentals of a company in which you are going to invest it gives you an idea about the performance of the company as a share. Big companies like reliance,Tata are very good options in case you are interested in long time investments (more than 1 period) as their return history is consistent. Just in case of mutual funds here also you can build a sector wise healthy portfolio can lead to a balanced investment.