There is a widespread misconception that in order to begin investing, you need a lot of money and knowledge. The opposite is absolutely true. While you do need some capital and a basic understanding of the market to begin investing, starting small and building from there can actually be a good strategy for beginners.
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The First Ever Social Community For Small Investment and Big Returns
Why Is It Important To Invest?
If you’ve been paying attention, you may have noticed that inflation is at its highest level in 40 years. As a result, living costs are rising at an unprecedented rate. Everything, from grocery shopping to filling up your car to get to work, costs more.
Additionally, you may have noticed that your income has not likely increased at the same rate. You probably are not making enough money to keep up with the rising cost of living.
You might think that investing is too risky, but it’s even riskier if you don’t put some money into something that will help you in the future.
So, here are a few reasons why investing is important?
You would like your money to benefit you. For your money, you work hard. You ought to let your money earn some respectable returns by working for it.
A bank account loses value for your money. There is insufficient interest in a savings account. When you keep your money in a place where it doesn’t earn interest, your purchasing power goes down as inflation rises.
You want to avoid working until you are 70. Compound interest will be on your side sooner if you start investing as soon as possible. Investing is all about ensuring that you won’t have to work forever.
When you don’t invest, you’re missing out on “free money.” You ought to be getting money from your investments. You are missing out on what would essentially be free money if you do not make use of your money.
To establish a routine, you should begin investing early. When you don’t have much money, the point of investing is to learn how to invest so you can be ready when your income does rise.
Starting an investment is now easier than ever. It is now much simpler to begin investing now that there are so many platforms available. It can be set and left alone. To begin investing, you do not need to study stock charts or spend hours in front of a computer.
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How to Save Money from Salary and begin Investing
5 Best Small Investment, Big Returns Options
Let’s take a closer look at each of these small investment options which give big returns.
1.Equity
There are numerous online broker platforms that provide commission-free ETF trading today. Equity investing is a great way to get started. Equity investment is the process of purchasing individual equity shares from businesses that are listed or unlisted on stock exchanges. Direct stock investments can bring dividend and capital gains returns. The market, a company’s performance, and other factors influence stock performance or return.
This is a high-risk, high-reward investment. Therefore, in order to earn any kind of returns, even if you begin with relatively little capital, you will need to conduct research and comprehend the stock market.
2. Mutual funds
Mutual funds offer a methodical investment strategy. With just 100 rupees, you can invest in them frequently or monthly. Investing in mutual funds through a SIP is more advantageous because they are accessible and bring the average rupee cost. Its relatively lower riskier than stocks.
Read: Investment Diversification: How to diversify your portfolio?
3. Peer-To-Peer (P2P) Lending Platforms
Peer-to-peer lending is a relatively new idea in India that has seen tremendous growth in recent years. Distributed stage brings borrowers straightforwardly to loan specialists, removing the monetary establishments as middlemen. Because of this, peer-to-peer platforms are able to offer lenders higher interest rates on their returns than many traditional fixed-income asset classes do, despite having a lower risk than the stock market.
Saving money and investing it are closely connected. In order to invest money, you first have to save some up. That will take a lot less time than you think, and you can do it in very small steps.
Money Club is the best platform for small investment and big returns. It is a saving and investing platform based on peer to peer model. It is the first ever social platform dedicated to helping people save money, invest money and borrow money. A group of verified people come together to pool money and earn higher returns (10%-15% p.a) than Bank FDs and RDs (3%-6% p.a). Money Club App serves both as saving and an investment app. To know more about this platform see the video here
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4. Bank RDs
Bank RDs are a service provided by banks that guarantees the safety of recurring deposits and pays interest on those deposits when they reach maturity.
Bank recurring deposits require you to invest a fixed amount each month or every three months, depending on the plan you select with the bank, for a predetermined period of time at the current interest rate. You will receive your principal amount at the end of your term, with compound interest added throughout.
You can get returns from Bank RD. Your money is safe as a result. Your RD cannot be withdrawn until it has reached maturity. If you break your RD before the term is up, you might miss out on compound interest and have to pay penalties. RD can be both long term and short term. The length of the term can range from three months to ten years. In a Bank RD, the initial rate of interest will remain the same throughout the term.
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5. Real Estate Crowdfunding
Real estate crowdfunding is a type of investment that makes it possible to own a small portion of large commercial properties without having to be a landlord.
It’s a fascinating way to learn about investing in commercial real estate and diversifying your assets. Although it is not advised to invest all of your money on any one of these platforms, they do provide an intriguing alternative investment that is not directly correlated with the stock market.
The benefit of owning a piece of real estate is that you share the cost and risk with other investors, and you are not responsible for keeping the property in good condition or even completing the paperwork required to purchase it.
Conclusion
Even though investing with a small amount of money may seem intimidating, the most important thing is to get started as soon as possible. You can potentially see your investments grow if you consistently invest even a small amount over time.
In conclusion, there are numerous investment options in India today. In contrast to a few years ago, when FDs and stocks were the most popular investments, new investment options like peer-to-peer lending have emerged. The best part about these investments is that they have the ability to balance the risk and returns, which most investors find hard to achieve. You can choose Money Club for small investment, big returns.
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