Are you a new comer to the market and want to understand its various dynamics? I am sure it will be a hard way to learn the market. Unless you start investing in the market, you will not be in a position to learn it in the best perspective. Experience is the best teacher. First and foremost, not many individuals have real plans to start investing. Saving your hard earned money will be of no use unless you invest them in something. There are several ways to safely invest your money through which you can get decent returns.
High Risk and High Returns:
If you are an individual who wants to learn the market dynamics by having a decent risk exposure, it is highly recommended to start investing the equity market with a minimal capital. You can even start with an investment of 5000 INR initially. You have to be cautious and watchful in the market. You will reap better benefits if you are a long term player here. It is highly recommended to watch the price of your stocks at least once in 3 days. Stop loss should be your thumb rule while investing in equity.
Low Risk and Decent Returns:
Are you a long term player? Do you aim to gather momentum for your pension funds? Do you want to save money for your child’s marriage or for higher education abroad? These goals will have a definite time period of 20 years.
Options 1: Equity market is again the best option for you to invest. For a period of 15 to 20 years, equity markets can give you unimaginable returns. Do you know that a simpler investment of 6000 INR in the year 1996 is worth 800,000 INR in 2012? This is the power of equity market.
Option 2: If you do not want to opt for equity investment, there are certain other funds offering guaranteed returns like the PPF, VPF, NPS. These funds offer close 8.5% returns on an average. PPF and VPF funds can help you to get the benefits of compounding. PPF and NPS are the better options. NPS will allow you to invest in equity funds which will help to increase the returns. The best thing is that the funds will allow you for tax exemption. NPS is gaining momentum and you can read more about this in the internet.
Option 3: Do not opt for any sort of endowment or the traditional insurance policies. Insurance policy is just to cover up your risks and you should not expect higher returns from them. If you are a kind of safe player who thinks equity is not your cup of cake, then you can opt for PPF and NPS funds. Insurance policies cannot substitute these funds.
I believe you would have gained a better idea by going through this article. You can be a new comer in the market but that does not mean your investments should be restricted to the insurance policies. Do not be deceived by the insurance agents.