How to invest your money | how to get rich at 25

How to invest your money | how to get rich at 25

• Are you earning a good amount of money but you can't able to save your money for your curriculum activities like a dream vacation, your child higher education or maybe for their marriage.

• Or you just want to earn more returns then you get from your bank(saving, fixed deposits)A/C.where the money is not increasing at that rate that it can beat the inflation.

• So to get more returns on your investments you can use these ways which are different from regular saving/investing you prefer.

 1.Mutual funds

A mutual fund is a type of fund in which capital(money) is collected from different investors and the collected capital is then invested in a number of companies shares, stock, bonds etc. 

By the fund manager -(a person who manages the fund)he is a professional financial expert whose job is to select proper stocks and bonds that could give higher returns compared to the market returns.

Investing in a mutual fund is the easiest way to grow your money as the fund managers are highly professional and as these funds are regulated by Sebi they are quite safe.

But as you all have heard about stock market there is no guaranty return on your money as the line suggest: "investing in mutual funds are subject to market risk "

but in the long term 5-10 years, they usually give far better returns than a fixed deposit

2.Bonds

A bond is a debt instrument(paper) which means it is created for raising money(capital) also known as fixed income security.

This is basically a loan agreement between the issuer and an investor in which the issuer paid a certain fixed amount of money on certain fixed future dates.

Generally, the bonds are issued by government firms, corporate business, etc. to raise capital. and as an investor, we gave them a loan on an agreement that the issuer will repay it after some years and you get fixed interest on bonds per year.

It is less risky from mutual funds as the investor(you) yourself choose a bond of your choice after doing your own research.

and it gives more interest than fixed deposit.

3.The stock market (direct investment)

Well, this is same as mutual funds but the main difference is that there is no professional fund manager who will manage your portfolio instead you only have to choose which stock to buy and sell on your own research and knowledge.

Well in this the risk is very high as you can lose all your capital but if you can do proper research on a company or sector and have a knowledge of how stocks work then you can pick some good stocks then your returns will be outstanding.

In this the risk is high but the return is also high. so choose this if you can able to take it.

4.Gold

This is one of the oldest ways of investing followed by many people as gold is highly liquid nowadays you can even buy and sell e-gold(digital gold) its available on various platform such as paytm, paisa bazzar, motilal oswal, and many others.

The pros of digital gold are that you don't have to worry about where to keep/store it safely. as it is on your digital wallet/account in the form of a digital product and not a bar of real solid gold.

You just have to buy it when its prices are low and sell it when the price of gold rises. pretty simple and easy right.  but wait you are not a god that you can predict it.

You can only speculate the prices will go up or down but there is no guaranty of it that you may be right always. 
but the good news is that even if you were wrong then also you can still get to wear or use it if you opt for delivery of your gold in a bar/coin form converted from the digital form.

5.Real Estate

This idea which always comes to your mind if you think of getting rich or earning some good amount of money is real estate. these this a very important way from which many people in the world became wealthy. 

Although this is not an easy task to do as you will require a huge capital(money) to invest in real estate. but the real estate is not only about the high investment its also gives to returns if you able to hold it for some time means(years).

You cannot get rich quick in this and in real estate like flats,plots, land gives you best return only if you can have it in a great location. its all about the location, size, demand etc. 

That will determine the returns on your investment. but this is for reseller but you can also earn from by renting your real estate like renting your flat, house, garage, parking, plot, etc by renting you can make a regular income on your asset while you're holding it and plus the value you get when you sell it.



conclusion:- There are various ways of investment that you can do but they all differ in nature of complexity, tenure, risk and returns.
so you can choose the one which suits you the most according to your risk appetite and how much returns you want from it.



Comment your favorite investment method below.