The market has an abundance of potentially lucrative investment opportunities, so it often makes you wonder - which is a better investment? For most of us, deciding where to invest to get good returns is a tough task.
Stocks, bonds, mutual funds, exchange traded funds (ETFs), bank certificates, real estate investment, and gold can help you preserve and grow your wealth. The critical part is to choose among them.
Here are a few important points to consider while selecting the right option to enhance your wealth.
#1 Financial goal
#2 Risk profile
#3 Time horizon
It is important to decide on financial goals as it helps you decide your horizon depending on your goals such as retirement and legacy investment, building an emergency fund and so on.
The risk profile is essential to know the risk-bearing capacity.
The tenure for the investment is the time frame for which you want to hold an asset for a maximum return. The potential rewards are higher for the longer duration of investment and vice versa.
For more, check out our asset allocation guide to get started.
Investing won't suddenly make you wealthy. A long-term process requiring patience and perseverance is quint for building money.
Focusing on this factor will help you weigh the pros and cons of the various options in the context of one own situation. This will help you determine the right investment mix for a good return in the market.
So, in short, here are some do’s and don’t’s:
First of all, what you shouldn’t do...
Don’t play the lottery.
The same is true for gambling in casinos.
Now let’s look at the legitimate ways to achieve your ambition of good returns.
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