Which Are The Best Ways To Invest Money? The Approach of a Beginner

By Trader Pit

July 6, 2021


Investing money is one of the best ways to grow your wealth and invest for the future. But what are the best ways to do this? This article highlights a few of the basic things to look out for.

Investing in stocks is a common practice but if you want to learn how to start investing in stocks and become more successful, there is a lot of information you need to know, no matter if you are a beginner or an expert. The truth is that learning is like a journey, so you need to start from the beginning to fully understand it.

Your investment portfolio consists of all the assets that you have invested in, which may be stocks, bonds, mutual funds, and real estate. The goal in investing is to let your money grow without expending any effort. When you invest in stocks you earn money, if the company you invested in will grow, so you will also earn profit. In order to effectively manage your investments, you should learn about the different types of investments, portfolio management, asset allocation, and diversification.. Read more about investing money for beginners philippines and let us know what you think.I was surprised at how incomplete the information is that we have on how to invest money. Most articles just point out investment opportunities and don’t tell us anything else about them.

People who want to learn about investment opportunities need more information. Shares, for example, are an investment option. But how do you invest in stocks? Readers would like some help finding different alternatives to investing in stocks. This article is intended as a quick reference guide.

I created an infographic that clearly explains this concept. I hope that especially beginners can benefit from this form of explanation.

In general, people can keep mutual funds on their toes. The most commonly discussed alternatives are mutual funds, stocks, gold and real estate. This knowledge is not false. But with the help of my infographic and explanation, you can learn more about this skill.

This insight will help readers invest with more conceptual clarity in the future.

Ways of investing money – decision flow

#1. Equities, ETFs, MUTUAL FUNDS and REITs (online trading, demat and net banking A/C)

The way to invest money in stocks, mutual funds, ETFs and REITs is to open an online trading account. Just open an online trading account and you are ready to go.

In addition to an online trading account, you must also have two sub-accounts. The first is the dematerialized account. In most cases, the opening of an online trading account is accompanied by a dematerialized account. So you don’t have to do a separate exercise to open this account.

The second is a net bank account. Nowadays, almost everyone has a bank account. If you are not already using netbanking, choose customer service. A representative will help you activate net banking on your bank account.

Let’s assume you already use net banking (any bank). In that case, ask the business account manager to link your existing account in the netbanking system to the new business account.

For more information on how to use a brokerage account to buy stocks, mutual funds and more, visit this link.

#2. GOBI BONDS – NS FACTORY GOBID 1B 9

The GOI issues bonds which the public can subscribe to. We can use the NSE GOBID APP. Web and mobile applications can be used to invest in Government of India bonds.

You must first register in the NSE GOBID application. The registration procedure is online. The NAP verification is also done online. This means that opening an account can be done in an instant.

After registering your account, log in and select the listed T-SECs and bonds. Then pay the required amount online. In most cases, the minimum investment amount is Rs. 10,000 for each T-Sec/bond.

The purchased bonds/securities will be credited to the linked securities account in the coming days.

Recommended reading – A comprehensive guide to retirement planning. Know how to plan, invest and use a pension fund.

#3. EINLAGEN – NETBANKGESCHÄFTE

Deposits can be made in two ways. Firstly, it is a bank deposit, which we also know as a fixed deposit, issued by different banks. The second category refers to corporate deposits issued by Indian companies.

Both types of deposits can be purchased through the Net Banking portal. Let’s assume you have a bank account at Axis Bank. In this case, you can register on Axis Bank’s website or mobile app and get a fixed deposit (or periodic deposit) from Axis Bank.

Investing in corporate deposits is a little difficult. Why? Because there is no common application to identify and invest in them. I found a way to do it, though. I’ll share it with you.

Visit this online resource. Here is a list of the different business deposit accounts available for investments. You will see the company name and the security level. Make sure you invest in deposits from companies with a rating of no less than AAA.

You can also read the specific details of the deposits offered by the company. If necessary, you can also call the editor. If you are happy with the scheme, you can download the application form. Is this your first time doing this? I recommend that you visit the nearest branch in person. Complete the application form in the presence of your representative. You can then make an online payment (RTGS/NEFT) through the online bank.

For beginners, this can seem like a daunting task. But over time, adding business deposits to your investment portfolio will pay off.

#4. BANK – PHYSICAL GOLD

People who want to invest in gold have the following options:

  • Physical gold – coins, bars and jewellery.
  • ETFs and gold funds.
  • E-Gold
  • Sovereign Gold Bonds (SGB)

If you want to invest in physical gold, it is best to buy coins or bars from banks. Gold purchased from banks is accompanied by a certificate of purity and weight. Experts advise against buying jewelry as a form of investment.

ETFs, gold mutual funds and SGBs can be purchased through an online trading account (as described above).

Investing in e-gold is a bit more complicated. I will ask you to look at the investment process in detail in this article.

#4. REAL ESTATE – DEVELOPER OR AGENT

Investing in real estate has its advantages and disadvantages. People who have become real estate professionals can attest to its effectiveness. There is a process to follow when investing in real estate. Compliance with the procedure guarantees the expected benefits.

The real estate sector is not yet as organized as the financial market. So there are currently only two ways to invest in real estate. To find and buy a property, contact the property developer (for new projects) or the estate agent (for resale).

One way to find a good (new) project in India is to use the RERA websites. Then, somehow, we will have to approach the developer to invest in their project.

Imagine a mobile app, like Amazon or Flipkart, that allows us to buy real estate with one click. Of course, there will be problems, especially with the registration of loans for the purchase of homes and real estate.

In order to implement such a service, a complete infrastructure must be set up. This requires the involvement of the government, banks, developers and real estate agents.

Today we have online portals like MagicBricks, 99Acres, Housing and others. These portals are excellent for property searches. But they can’t help people buy them.

It is also possible to buy a property (resale) without having to deal with estate agents. However, this is only possible if you have already found an interested seller. If this is the case, you can call upon a lawyer to guide you through the next steps in the purchase of a property (before final registration).

If you don’t want to worry about buying physical real estate, you can invest in REITs. Check out the following two articles on REITs:

Supplement

There are several ways to invest money in India. Depending on your investment choice, you can invest online or offline.

In this article, I have tried to address ways to invest in stocks, riskless options, gold and real estate.

In general, having an active online trading account is sufficient to meet most investment requirements. The exceptions are physical gold and real estate investments.

Personally, I would refrain (as a beginner) from investing directly in government bonds through the NSE GOBID APP. Why? Because indirectly, we can invest in them through mutual debt funds.

Why is it necessary to know all the ways to invest money? We must invest in different asset classes to ensure that our investment portfolio is well diversified. This information is used to construct a balanced, low-risk portfolio.Investing is the process of buying and selling investments to make money. However, not every investment approach is the same. For example, the values of stocks and markets can change over time. Therefore, the amount you invest has a direct impact on your financial situation. There are different investment approaches such as value investing, growth investing, and diversification investing, among others. The right approach will depend on your goals, risk tolerance, and financial situation.. Read more about smart investing for beginners and let us know what you think.

Frequently Asked Questions

What is the best way to invest money for beginners?

It is best to start investing by investing in index funds.

How much money should a beginner invest for the first time?

This is a difficult question to answer. It depends on the person’s risk tolerance, the amount of time they want to invest, and the amount of money they have to invest. If the person wants to invest for a short amount of time, then it would be best to invest a small amount of money. If the person is willing to invest for a longer amount of time, then they should invest a larger amount of money. If the person has a lot of money to invest, then they should invest a large amount of money.

What is the best way to invest money?

The best way to invest money is to put it in the bank.

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About the author

Trader Pit

A yogi who like Finance and Technology. I have been in Indian Stock market for over 12 years now as financial analyst, portfolio manager, trader. Now, I focus on Yoga, Financial Education & Long term investing. 

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