When it comes to investment, we have unrealistic approaches and this is what fails us.
“Money begets money” is quite an old adage but still relevant when it comes to wealth creation. Saving money and investing sensibly is the mantra that will help you beat inflation, give handsome returns, and secure your future, fulfilling your goals.
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Why do we fail in wealth creation?
Investment planners and online investment planners are of the view that most investors have an attitude of ‘no risk, high gain’, without understanding that no risk means low gain. Thus, by following conservative strategies and keeping our money safe, most of us fail to create wealth and secure financial freedom.
Practically, it is important to comprehend that the principle of investment is- the higher the risk, the higher the return, and vice versa. Talk to certified financial consultants or investment consultants and they will tell you all about different investment avenues based on your risk appetite.
5 Safe Wealth Creation Ideas
Keeping aside all other factors, the most crucial element in wealth creation is to select the right avenues of investment to grow your money.
Here is a list of 5 Safe wealth creation ideas in India, endorsed by Investment planners and online investment planners-
1. Equity Mutual Funds:
According to investment planners and online investment planners investing in equity brings the highest returns but is highly risky too. Therefore, a safer and less risky option is to invest in equity mutual fund schemes, which invest at least 65% in equities. These fund houses are managed by fund managers and many consistently give good results.
2. Debt Mutual Funds:
For investors who have a low-risk appetite but want steady returns, investment planners and online investment planners ask them to invest in debt mutual fund schemes. These funds are considered less risky than equity funds as they primarily invest in fixed-interest-generating securities.
3. Public Provident Fund (PPF):
PPF is a government-backed product and is highly recommended by certified investment planners since it pays a high and steady rate of interest that is tax-free. It has a tenure of 15 years in which an investor can withdraw partially at various points.
4. Bank fixed deposit:
These deposits are made with the banks and have fixed interest rates, therefore, they are quite popular for being a safe bet.
5. National Pension System (NPS):
Managed by the Pension Fund Regulatory and Development Authority, NPS is a good long-term scheme with tax benefits and gives you the power to decide on how much you want to invest in equities. Whatever your investment requirements, let Team Fincart chart the most rewarding path for you.
Also Read: Why is Wealth Creation an Integral Part of Financial Planning?
