Investing early is similar to having a head start in a marathon. The sooner you start, the more time you will have to allow your money to work its magic. Since it’s chilling winters while I write this blog, let’s take this example – investing is like placing a savings snowball on a downhill roll, as it rolls, it accumulates more snow (money). If you start late, it’s similar to arriving late to a party – you’ll lose out on all of the fun and the greatest snacks. By investing early, you allow your money to stretch, develop, and prepare for your future.
So, don’t put it off any longer — get started today and watch your money groove its way to success!
When we talk about investment these days, it’s like giving hard-earned money a superhero cape and making it fly to big ventures for a power boost. Those companies take the money and level up, using it to expand and make more money.
The investing universe is vast, but here are some of the most common types, explained in the simplest yet witty way:
Stocks: One fine day, I heard my office’s helping hand talking about the stock market. So, it’s a regular term, quite complex to understand in the beginning yet fun, when you ace the game.
So, let’s understand it this way – purchasing a company’s stock is similar to getting a great slice of pizza and investing in a pizza joint – you get a teeny-tiny slice of that pizza. These shareholders, or part-owners, get to enjoy the pizza’s taste and the pizza joint’s success. When the company becomes more popular (stock price rises) or shares a portion of its profits (dividends), you get a taste of its success as well.
Many large corporations allow you to purchase their stock. Consider it similar to owning a portion of their success. You buy in the hope that the price will rise so that you can sell and profit. However, if the price falls, you may lose money. It’s like predicting the weather, sometimes it’s sunny, sometimes it’s stormy.
Bonds: Bonds are similar to IOUs (I Owe you) issued by large groups such as governments or corporations. When you buy a bond, you are effectively lending them money. They undertake to repay the loan with interest regularly. And when the loan term expires (maturity), they return the amount you lent (the face value). It’s similar to being a nice lender, earning interest until your loan is paid off in full. Sovereign Gold Bonds are one of the most famous and well-known bonds in India. Sovereign gold bonds are investing power-rangers — rock-solid and less volatile than other assets in the market. Because gold has always been a star, these bonds tend to grow your money over time. It’s like having a treasure chest that grows shinier with age – a pretty good deal for your money too with an added interest of 2.5% per annum distributed semi-annually to the investors.
Here are some top-performing bond funds in India:
-Aditya Birla Sun Life Corporate Bond Fund
-HDFC Corporate Bond Fund
-SBI Corporate Bond Fund
-ICICI Prudential Corporate Bond Fund
-L&T Triple Ace Bond Fund
Mutual Funds: A mutual fund is formed when a group of people pool their resources to purchase items such as business stock or bonds. There are various types, with some focusing on stocks, some on bonds, and some combining the two. Consider mutual funds to be a group that pools money to acquire various items, and each type has its own set of tax rules.TheOnly form, ELSS (Equity Linked Savings Schemes), can help you get tax advantages under a law known as Section 80C.
Exchange Traded Funds (ETFs) are index-tracking investments that track the performance of stocks, bonds, and other assets. They’re a unique combination of mutual funds and equities. ETFs, like stocks, can be purchased and sold at any time. On the other hand, to buy or sell mutual funds you must wait until the end of the day. ETFs are essentially the quickest and most flexible investment trading solution!
Exchange Traded Funds (ETFs): ETFs are index-tracking investments that track the performance of stocks, bonds, and other assets. They’re a unique combination of mutual funds and equities. ETFs, like stocks, can be purchased and sold at any time. To buy or sell mutual funds, however, you must wait until the end of the day. ETFs are essentially the quickest and most flexible investment trading solution!
Understand it this way, ETFs? Consider them a buffet of investments, stocks, bonds, and all sorts of goodies or commodities, served on a single large dish. It’s similar to having a mixed bag of treats where you can sample a little bit of everything without committing to a full-course meal. They’re like chameleons of investment, altering and adjusting to your preferences.
Fixed Deposits: The one preferable choice of our parents! Can you guess? Well, fixed deposits (FDs) from banks are among the most secure investment choices available to investors. They are provided by banks and other NBFCs and allow investors to park their idle cash for a set period at a fixed interest rate. The interest rate is predetermined and unaffected by market changes, ensuring greater investment security. Fixed deposits are a godsend to risk-averse investors due to the ease of flexibility and the variety of options available to them.
Fixed Deposits are like a cosy savings oven where you can stow your money and bake it at a certain temperature until it’s all lovely and crispy with interest! Consider it like putting your money in a treasure chest that develops on its own as you sit back and enjoy your tea. It’s the banking world’s slow-cooked stew – that is simple, consistent, and always rewarding when it’s time to dig in.
Well, investing is not easy and doesn’t even seem to look easy. Put your money in any form of investment only when you are done with thorough research of market trends! Happy investing.
