Top 5 Investment Ideas for 2022

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Indian capital markets have been booming over the past few years, but have you made use of them? Most of you might have parked your funds for the future. But are they enough to fulfill your financial goals tomorrow? Don’t you want to buy your dream house or car or send your kids to the best global universities? Also, how about spending annual vacations?

The Inflation blues

Many people think of investments as parking funds in fixed deposits as they guarantee the safety of money. But do they? The item bought for Rs.20 today might be Rs 35 in the next couple of years. Just take the case of grocery. The onion that you brought for Rs.40 today was Rs.27 a week before. Why was there a steep rise? The answer is inflation. So, are your investments able to cover you against rising inflation?

Rising Markets

If you have not capitalized on the growth stories of Indian companies, now is the time to start doing it. Many hesitate, thinking that the stock market is risky and they might lose the invested capital. Well, there is no denying that it is entirely false. But there is a different approach to it. Invest in only those companies that you trust. Study the companies before you invest in them. Do not blindly follow the advice of others. Instead, take a bit of time and try to learn. Through this site, we will try our level best to help you with your financial education.

So, let us check on briefly the top 5 investment ideas for 2022.

Fixed Deposits:-We will start with the most conservative investment option. If you want stable, safe, guaranteed returns without market fluctuations, this is the best way. Short-term renewal options and the ability to compound make it more attractive. For young investors to build secure capital, it is better to start a monthly recurring deposit scheme with an amount that does not matter to them in the long run and then invest the cumulative annual sum as fixed deposits. This fund finds use in emergency scenarios.

Mutual Funds:- If you are thinking of wealth accumulation, then mutual funds are the best option. But there is the element of market risks which you should analyze before making investments. There is an option of Systematic investment plans(SIP) where you pay a monthly sum in the fund or funds of your choice. Once the term is over, there is an option to convert SIPs to Systematic withdrawal plans or SWPs, where you get monthly income from investments. There are different types of funds to invest depending upon your overall risk profile and financial goals.

Stock Markets:- This is the rendezvous where you could get stellar returns provided you follow a disciplined investment strategy in the right stocks. But before entering into it, it is suggested to earn basic knowledge about the markets and not fall for tips from sources like YouTube or blogs. There are two ways to capitalize on markets.  The first one is through investments, and the second one is trading. Investments give long-term capital appreciation, whereas trading gives short-term income. Trading is mostly for seasoned players who can monitor market trends regularly and research companies using technical analysis. For investments, you need to study the company in general, its financial statements, and future growth prospects.

Real Estate:- A property investment can never disappoint you. If you have funds, this is the best area to park funds against inflation. Real Estate Investment trusts are yet another option that can give dividends as well as capital appreciation. They are said to be the best counterbalance against stocks, bonds, and cash.

Pension Schemes:- If you want a secured financial life after retirement, the National Pension scheme is the best bet. It is for people who are averse to risks. This scheme parks funds in government bonds, equity, and a plethora of alternative investment options according to your preferences. The interest rate is around 8 to 10%, and it starts from as little as 500.

Conclusion

Plentiful options like Ulips, post office schemes, PPF, bonds, liquid funds, and senior citizen schemes are also available for investments. The choice of the best investment plan depends on your risk profile and financial goals. But the advice is, do not invest blindly, but wisely. After all, it is your hard-earned money. If you do not consider that, then who will?

 

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