How To Invest Wisely And Make Your Money Grow

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Post on 07-Aug-2015




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  1. 1. How To Invest Wisely And Make Your Money GrowWise investments of your spare funds can be a great way to grow rich. These days,savings accounts offer very low interest and it is a waste to allow your money to lie inthem. Based on your appetite for risk and your financial needs, you have various otherinvestment schemes and options to choose from.Have a look at How to investIt is always safer to have a diversified portfolio, that is, to spread you money around invarious types of schemes, so that the risks and returns get balanced out. The companyyou work for would have a 401(k) plan which is always a safe bet. In this scheme, theywill deduct a part of your salary every month and give it to an independent financialsource to manage the investment, so that you get a healthy return at the end of yourtenure. For those of you with greater risk-taking ability, stock markets or mutual fundscan be a good idea. In stock markets, you can buy shares of companies listed on thestock exchange. Usually, good companies offer dividends along with a fair return onyour investment. Dividends are not mandatory, but a lot of companies like to distributetheir profits among shareholders as dividends.Some companies prefer to reinvest the profits into expansion projects instead ofdeclaring dividends. These re investments in turn should lead to further profits.However, the stock markets are unpredictable and a lot of people who dabble in stockswith the purpose of making some quick bucks may end up with losses instead.Have a look at Learn how to investMutual funds are relatively safer investments, though they are also subject to marketrisk. Mutual funds are investments made in the stock market by financial managers witha fund collected from actual investors. There can be sector-specific mutual funds forinstance those that invest in Pharmaceutical or IT or infrastructure companies only.Whatever be the mode of your investment in the markets, it is vital that you track theseon a regular basis. If the prices of your shares or mutual funds decline at a time whenthere is a slowdown in the economy as a whole, there is no need to panic and sell at aloss. The markets will quite likely bounce back to where they were or perhaps evenbetter. However, if the markets are strong and yet, the value of your mutual funds is on adecline, it could mean it is not well invested and it would be advisable for you to selland move your money into something that will generate better returns. A financialconsultant can advise you about the market situation and what types of investments willsuit your needs best.Have a look at How to invest money