http://incomedrops.blogspot.com/2011/01/mastering-technical-tools.htmlWhen we talk about investment I feel it is necessary to cover all types of available investment options. So let us go through it. Hope it will help you to find out the best option according to your need and capacity.
THE MAJOR INVESTMENT OPTIONS.
1. GOLD.
2. BANK FIXED DEPOSITS.
3. PUBLIC PROVIDENT FUND.
4. MUTUAL FUNDS
5. INDEX EXCHANGE TRADED FUNDS
6. TERM INSURANCE
7. UNIT LINKED INSURANCE PLAN (ULIPS)
8. SHARE MARKET
9. REAL ESTATE.
From the above given options of investments you will be able to select some thing of your choice and need. But I sincerely suggest you to go through the details given here just by spending 30 minutes Before going further let me tell you the goals that you have to choose while selecting your investment plan.
There are three common goals which you can achieve by investing you hard earned money by investing it properly. They are :-
1. Get Insurance Cover.
2. To Save Tax.
3. To Create Wealth By Getting High Returns/Profits.
So let us make the first step towards becoming an expert investor. We will be able to find out our goals and select the exact form of investment of our needs by classifying the above investment options by risk to reward basis. Let us try to analyze it with an investment period of one year.
CLASSIFYING INVESTMENT OPTIONS TO THE RISK TO REWARD BASIS.
INVESTMENT RISK REWARD
BANK FD/PPF/ ZERO RISK
TERM INSURANCE ( NO LOSE AT ALL) 5 TO 10%
GOLD(PHYSICAL HOLDING) LOW RISK 10 TO 30%
GOLD ETF (CHANCE OF LOSE 5 TO 15%)
REAL ESTATE....(HOUSE LOW RISK 10 TO 30%
LAND/OFFICE/BUILDING) (CHANCE OF LOSE 5 TO 15%)
DIVERSIFIED MF/ELSS MF ABOVE AVERAGE RISK 10 TO 50%
EQUITY BASED MF (CHANCE OF LOSE-30 TO 50%)
DEBIT BASED MF/DEBIT BASED MODERATE RISK 10 TO 30%
ULIP/INDEX MF/INDEXULIP (CHANCE OF LOSE-10 TO 20% )
SHARE MARKET FOR MODERATE RISK 30 TO 100%
A WISE INVESTOR (CHANCE OF LOSE-10 TO 20%)
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Apart from above given table there are two more ways of investing which you can call HIGH RISKY. They are-in my opinion- one is the investments in sectoral mutual funds and the other is an investment done in the share market by an investor only based on the tips given by others. (These type of investments can eat up more than 50% of the money invested in it.
Hope you have an average idea of the available investment options. In next post we will discuss about how one can identify the investment option of his need and choice.
Best of luck
- Brief understanding of the investment options
- Understanding the market.
- Building your portfolio and managing it.
- Smart management of your portfolio
- The Game Investing
- The Power of Technical Tools
- Trading to Feed the Investments
- The New Year Gift.
- Mastering The Technical Tools
- Back
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