Where to Invest Money Saving Account, Fixed Deposit, Mutual Funds or Stock Market

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Many people say that they can save money by not paying all their monthly expenses. We have almost nothing left. Even if we do save money, we can’t put all of it into an investment plan. We turn to our extended families and friends for help in times of financial distress. As a friend, it is our saving that stands out in this situation.

It is not enough to deal with the crisis we may be facing. The answer is “no”. How is it possible to continue saving money like this? It is important to put your idle money to work actively in order to produce more money.

A significant amount of our savings should be invested in a different investment plan to achieve a higher investment rate. Diversification is key to minimizing risk in our investment. A solid portfolio can reduce risk. Calculations are the key to investment. A professional fund manager can help you increase your wealth if you already have it. There are several ways to invest your money.

A savings account is the best and most simple way to invest your money in a bank. You will generally get 4-6% annual interest in your savings. Although our money is safe, the yield we earn is very low.

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Bank fixed deposit (FD)

This is an excellent investment strategy for people who have regular income. To get a higher return on your investment, you can save a portion of your savings. Comparable to a savings account, the interest rate is slightly lower at 6-7%.

Mutual Fund

A mutual fund is a pooling of money from different sources (investors). It makes it possible to make wise investments in equity, debt, or both to give a greater return for each investor. It usually takes 3 to 5 years to put together investment plans that yield a profit of 14 to 18 percent in top equity funds and 5 to 8 percent in debt mutual funds.

Investing in the Stock Market

When a company issues its stock or shares for the first time, or when it is listed on the secondary market for trading, investors can purchase the stock or share directly. To trade, you will need a demat account.

Although the investment rate is higher than the previously mentioned investment plan, it is still a good investment. However, the return is determined by the market trend. If you do not thoroughly study the market, you could also suffer losses. A market expert who has been trading for a long time is better than a novice. An investment advisory firm can provide professional advice. The chances of doing a lot of work can be increased by professional research.

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The bottom line

These are the four most common investment options. A bank savings account and bank fixed deposit offer a fixed return and are considered safe. However, mutual funds and stocks can be subject to market risk. Investing in mutual funds and stocks is profitable but also risky. Before you invest in stocks, it is better to make an advisory call. You can choose what investment option you want as long as you are aware of your budget and risk tolerance.