What are the best ways to invest money?

When i started asking the same question in Chat GPT, it gives a comprehensive statements. It is absoultely somebody written.

But 2 simple keywords are there.

1. Risk tolerance
2. Investment Horizon

Questions

To understand simple, take a investment idea in Gold. Just answer without any thinking, instant reply is must

1. If Gold rate going down due to some incidents, are you ready to invest still it become zero?
2. How long you can retain the investment say 5 years, 10 years or so?

Most of the cases, you have the answer as Gold rate will not came down. Proof is there.

See Gold rate trend for past 50 years

Source https://tradingeconomics.com/commodity/gold

For your information, Graph showing rate in per ounce in US dollar. One ounce means 28.35gms.

In 1968 per gm rate is around Rs.85 per gram, now it is around Rs.6500 per gram (June 2024).

Answers

Now, hope your answer is ready.

1. Gold rate will not come down, so it is not so risky in long term.
2. Now how long you will invest, write your answer in comments.

Then, now you got confident in the asset called “Gold”.

But, naturally we have no enough money to keep for long time. But we have various options now a days.

Ways of investing

Some of this are given below:

• Real Estate
• Gold / Silver thourgh ETF
• Money Lending
• Bank Deposits
• Government Bonds
• Debentures
• Share Market / Equities / Stock Market
• Crypto Currency

Now we will come to actual question raised,

Best ways to invest money

The answer is same criteria. Risk & Time horizon.

We have to identify our risk tolerance & how long i can keep that investment. So, we make some time limit for investment to make it simple.

Investment horizon

Horizon name	Time
Short term	Less than 3 years
Medium term	3 – 10 years
Long term	10 years

Risk Tolerance Levels and Investment Strategy

Low Risk Tolerance

• Short-Term: High-yield savings accounts, CDs, short-term bonds.
• Medium-Term: Conservative balanced funds, bond funds, and a small percentage in dividend-paying stocks.
• Long-Term: A mix of bonds, blue-chip stocks, and conservative mutual funds/ETFs.

Moderate Risk Tolerance

• Short-Term: Money market funds, short-term bond funds.
• Medium-Term: A balanced mix of stocks and bonds, with a higher proportion of stocks compared to low risk tolerance.
• Long-Term: Growth stocks, diversified mutual funds/ETFs, and a moderate allocation in bonds.

High Risk Tolerance

• Short-Term: Short-term high-yield bonds, possibly some stock exposure.
• Medium-Term: Higher allocation in equities, including international stocks, small-cap stocks, and growth-oriented mutual funds/ETFs.
• Long-Term: Aggressive growth stocks, sector-specific ETFs, real estate, and alternative investments like cryptocurrencies or commodities.

Investments Ideas for Long term

Real Estate

It is naturally good asset to carry over your leagacy to next generation. Buying Home, Apartment, Plot are quiet tricky. You have to go through it and get observed.

Read more if you need, https://www.lodhagroup.in/blogs/how-to-buy-house-in-india

Know more about it. It has some different methods like REIT funds. REIT funds means not a physical asset.

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Gold and Silver

Buying gold & silver is good for long term. Though we say it has high risk, in India it is very liquidative than any other asset. That means we can sell the asset at any time. Within 2-7 days we will get money by sell it.

You can buy bars/coins online also. Try https://shop.mmtcpamp.com/

It is government recongised registered company, which gives option to buy and keep Gold in Gpay also. Check your Google Pay for buy gold from MMTC. But it has GST which adds into our purchase price.

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Crypto Currency

It is uptrend investment. Risk is more there as it has inconsistency in rate and have no proper market to trade. But keep some amount in order to enjoy the hype. We suggest Coinswitch in this regard.

Try https://coinswitch.co/in/refer?tag=yWpBy&pro=true

Please note if you click and join, we will get affiliate.

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Mutual Funds

Now, we come to our interesting investment. Mutual funds is easy to start even from mobile. Just create an account in Fundzbazar.com which gives access more than 300 mutual funds in single login.

You can select multiple mutual fund AMCs, invest in many mutual funds companies with SIP, Lumpsum, SWP etc.

Please connect if you use andorid app in Fundzbazar app . Click https://fundzbazar.com/Link/PMEbw_Io62U

Please note if you click and join, we will get affiliate. But we will provide you direct investment suggestions and monthly tracking of your portfolios.

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Stock Market

Rest is yours. Now tell me what you like most. Dont forget to join our newsletter to get updates about latest mutual funds and shares which are given more profit like 20% – 100% in short term itself.