Keeping your money in your saving account will not make it grow. As a matter of fact, the purchasing power of your money will keep decreasing over time as a result of inflation. So what will make it grow? The answer is simple, smart investments that yield high returns. High-Return Investments will not only grow your money, they will also help you beat inflation.
Smart Investments align with your short-term and long-term financial goals, risk appetite and expected return on investment considering expected inflation. While there are many Investment Options that give great returns, some are better than others.
Here are some significant Investment Options that can help you grow your money at a desired rate and undoubtedly beat inflation.
Mutual Funds
Mutual Funds are professionally and systematically managed funds. They comprise a combination of various equities and stocks to help you take advantage of diversification of investments across multiple securities. You can select the right Mutual funds based on your risk appetite, desired rate of return, time in hand, and the nature of your financial goals. Some important mutual fund types include Debt Mutual Funds, Equity Mutual Funds, Growth Mutual Funds, Fixed Income Mutual Funds, Index Funds, Balanced Funds, and Money Market Close Ended Mutual Funds, Open Ended Mutual Funds Multi-Asset Mutual Funds, and Speciality Mutual Funds. There are hundreds of funds available under each type of fund that you can cherry-pick based on your requirement. Index Equity Funds and Growth Mutual Funds are some high-return-yielding fund categories.
Stock Investment
Direct Equity Investment or Stock Investment is one of the Best Investment Options to multiply wealth in 2023. If you purchase the stocks of companies with a promising growth trajectory, you will likely generate wealth at a good rate over a good period of time. Stock Investment is good for people with long-term financial goals. However, before you invest in any company’s stocks, ensure you have researched those stocks in detail and your growth forecast of the stocks you are investing in is based on concrete data. Good research is important because Stock Market Investment Is a High-Risk Investment. Various stock categories include Large Cap Stocks, Mid Cap Stocks, Small Cap Stocks, Growth Stocks, IPO Stocks, and so on.
Commodities
Commodities such as fuel, silver and gold are Profitable Investment Options for almost everyone. With the advancement of technology, you can now invest in the commodity market and hold commodities in digital form instead of physical form. The commodity market is expected to be one of the best-performing investments in 2023. Trends suggest that investors in this market can expect an ROI of about 40 per cent this year. Now you can also buy gold through ETFs and Mutual Funds.
Bonds
Bonds are securities issued by the government or companies and directly sold to investors in exchange for money. This is a type of debt investment. If you make a Bond Investment, it will yield you a fixed interest or annual return. In comparison to other investment options, this is a low-risk investment. Investors should consider investing in Bonds in 2023 because it would help them beat any market volatility due to the expected approaching recession by the end of the year. Now you might question how Bonds can help you with market volatility if the interest rates drop and when the recession approaches. Well, when the recession hits economies, it brings a drop in rates. However, it still adds positive gains from rising bond prices to the interest payments. This generates an even more impressive total return.
Debt Funds
Debt Funds normally offer higher rates of return when compared to bank deposits. This is why they can be great Investment Instruments to fulfil both short-term and long-term goals. Debt Funds are a low-risk investment. Hence, if your risk appetite is low, yet you want to earn stable returns, then Debt Fund Investment is one of your Best Investment Options. They are high on liquidity. This means you can encash your debt fund investment quickly. They usually do not come with any lock-in periods and hence offer high liquidity. They are especially a great option for new investors.
Some significant types of debt funds include Dynamic Bond Funds, Money Market Funds, Liquid Funds, Corporate Bond Funds, Gilt Funds, PSU Funds, Duration Funds, and Overnight Funds.
Global Investments
Investment in high-potential Global funds is a smart move to multiply your money faster. Global Investments are great for individuals who have well-diversified investment portfolios of Indian companies already. International Stocks can give your portfolio the necessary lift and help you beat national and international market volatility. Some benefits of global investment include low transaction cost, currency appreciation, investment diversification, multiple Investment Options and Investment Diversification.
Ideally, invest 20 per cent of your investment portfolio into international stocks. However, this percentage can vary based on your financial goals, risk appetite, and investment expertise. Before you set sail in the global investment market, ensure you have done your research well or hired a reputed financial advisor with immaculate experience in global investing. Some research aspects you need to focus on include political stability, economic condition, and market condition of the country you want to invest in.
Derivatives
Over the last few decades, the Derivative Market has seen phenomenal growth. They are financial contracts that derive their value from underlying assets such as currencies, commodities, rate of interest, exchange rates, indices, and stocks. Some significant types of Derivatives include Forwards, Futures, Options and Swaps. You can participate in the Derivative Market either as a hedger, trader, or arbitrageur. However, before you venture into the Derivatives market, ensure expert advice. Investors can use derivatives primarily for three reasons. They are to speculate on an asset’s movement, take advantage of high leverage or hedge a position. While Derivatives are expected to be quite profitable in 2023, invest in different types of Derivates after calculating the risks and returns.
Get In Touch With Team Eureka Today to learn more about the Best Investment Options in 2023 and how to maximise your return on investment this year.
