The earlier you start investing the better it is. However even if you have just woken up to the fact that you should be investing for the future, don’t worry as it is better late than never. Each of us requires money to maintain our basic lifestyle. This comes from a source of income such as a job salary or a business that you may be running. In addition to the day to day needs one must also consider the big financial needs that will show up some time in the future.
Things like retirement and ill health in old age can become a huge drain on your limited resources at a later date. You may also have additional requirements for family such as looking after aging parents, education for children and buying a home to live in. Some amount of planning can help set you up in a situation where you can meet all your needs all through your life. Here are some investment options that you could start out with. There are other investment opportunities available for seasoned investors which are not included here.
Recurring Deposits Linked to Bank Account
If you wish to invest money but have no ready corpus, you will need to first build up enough cash to invest big. The best way to do this is to start putting aside a certain fixed amount of money each month for the explicit purpose of investing for the future. One good way to ensure that you do this each month is by entering into a Recurring Deposit with your bank wherein each month a fixed amount is taken away on its own. If you invest in a bank RD for a year you will have a basic corpus that you can then invest in the stock market or any other investing option that requires big money to enter.
Systematic Investment Plans in Mutual Funds
The Systematic Investment Plans or SIP is a great tool to invest directly into the stock market from the word go. You invest in Mutual Funds that are vested in equity. Here you do not have to keep up with the vagaries of the stock market each day. A fund manager does that on your behalf as you invest a fixed amount of money each month into the fund. The system works rather like an RD but instead of interest your money is picking up units in a Mutual Fund which tend to give a slightly better ROI (return on investment) than a simple bank RD.
Commodity Trading in Futures
For even higher returns you could try Commodity Trading. Commodity trading companies allow you to invest as a retail investor in an otherwise heavy duty financial investment. You can get a list of commodity brokers in your area from any reliable online financial website. Pick up a couple of local financial newspapers to study up on what commodities interest you. Get more advice from the commodity broker you choose to represent you and fix a certain amount of money for the broker to play around with.