2020 has been a traumatizing year for every individual, economy, and financial market too. The outspread of the covid-19 pandemic across the globe have not only put our lives at risk but also blocked our source of income to the extreme. The International Labour Organisation has revealed that more than 114 million people have lost their jobs amid coronavirus and lockdown restrictions. This drastic situation has forced millions of people to surrender their policies, funds, and valuable types of investments to meet the ongoing financial crisis.
As 2021 proves to be the same, it becomes paramount for everyone to keep their future secure while making radical investment changes in the next upcoming years. The flipping of the calendar is a good opportunity to make adjustments or changes in your current portfolio by choosing the right types of investments.
In this ever-changing age, people must generate other sources of income to minimize future risks, meet financial goals, and most importantly maximize their savings. Having said that, let us take you through the different types of investments that will keep your future safe and progressive in the year 2022 & beyond:
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The Top-Rated types of Investments for future
Simply put, an investment is a systematic process of allocation of money in reliable financial instruments like stocks markets, mutual funds, bonds, etc. to generate income or further grow the investment possibilities in the future. Since our economy is still uncertain, it is imperative to choose one or two worthy investment plans with little or no risks.
Here are some of the massive return generating plans that people can opt for:
Direct Shares
Many legit companies allow you to buy or sell shares directly using a Direct Stock Purchase Plan (DSPP). This is a systematized plan that enables individuals, groups, or other organizations to purchase companies’ stocks directly without the intervention of third party i,e; broker, or paying them any fees or commission. However, an investor still needs to pay fees for using the company’s plan services directly. Having a DSPP means you’re entitled to that percentage of both increase or decrease of the company’s growth or loss. The direct shares plan comes with the following benefits:
- The direct stock purchase plans require a little amount of money to get started.
- You don’t need to pay any fees, commission, or involve brokerage to buy DSPP.
- For first-time investors, the minimum deposit ranges from $100 to $500.
With DSPP, you get the opportunity to purchase or sell shares of the world’s largest and most trusted global companies while eliminating the middleman.
Cryptocurrency
Since the inception of cryptocurrencies, it has gained a lot of traction while giving new hope to aspiring investors to double their money digitally. That is different types of investment in trending. Now, many cryptocurrencies are seen as a global trend, a secure mode of payment, and more likely act as a mainstream investment option for many. Today, around 106 million people globally have invested and actively use cryptocurrencies for a good reason. There are plenty of cryptocurrencies available in the digital world that you can rely on. And these are:
- Bitcoin
- Ethereum
- Dogecoin
- XRP
- Cordano
- Stellar
- Chainlink
- USD Coin
- Uniswap
Just like direct shares, cryptocurrencies can be exchanged or transferred virtually without any middlemen. Depicts the challenges and risks, people see cryptocurrencies as a secure investment plan to grow their digital assets and to keep their financial future safe.
Direct Equity
For those who have little knowledge regarding stock markets, investing in equities can be rewarding. People who can easily balance risk and return at the same time are considered to be the winners dealing with direct equity. If you want to create real wealth, then you need to invest in a direct equity investment plan to generate good profits throughout the year. Direct equity has the capability to:
- Get good returns over time.
- To see an increase in the value of shares.
- You can manage your money accordingly.
- You can meet your financial goals without any failure.
- Make your investment journey risk-free and stress-free.
Equity Mutual Funds
Equity mutual funds are one of the preferred types of investments that don’t need any introduction. Many investors have already invested in mutual funds to avoid potential losses, broaden their investment horizon and achieve their investment goals smoothly. The focus of equity mutual funds is to generate good returns on investments across many listed reputed companies and trusted organizations. Depending on the urgency and need, the equity mutual fund is divided into:
- Equity Linked Savings Scheme (ELSS)
- Large caps fund
- Mid-cap funds
- Small-cap and Micro-cap funds
- Hybrid funds
- Multi cap funds
It is advisable to go with 5 years or even long-term mutual funds plans to reap a multitude of benefits.
Exchange-Traded Funds (ETFs)
Exchange-Traded Funds or in short, ETFs are usually traded like stocks and more specifically holds other assets like commodities, bonds, foreign currencies, and more. ETFs are somewhat related to mutual funds as well in terms of structure, regulations, and management. Just like mutual funds, Exchange Traded Funds is a well-structured types of investments plan that efficiently pools the financial resources for thousands of individuals and further allows them to purchase various monetary assets- shares, debt securities, derivatives to name a few. As most ETFs are regulated with the SEBI (Securities and Exchange Board of India), this makes it a satisfying investment plan for people having no or little knowledge about the financial markets.
The Advantages of Getting a Risk-Free Investment Plan
Indulging in a safe investment plan can build a solid financial portfolio for you and your whole family. Here are the key reasons why selecting the right type of investment is important for you:
- With a good investment plan, you get the advantage to ensure your family or loved ones from overwhelming situations. Return on investment with black pepper coverage lets you protect your family life. And if anything, it offers double the benefits of getting good returns.
- If you are looking for long-term plans like marriage, cost of children’s education, retirement, or buying a luxurious property in the future. So goal-based investing can do wonders for you.
- This is one of the major reasons for having a good investment plan. To multiply your stagnant funds while creating wealth for your future generations. Only the right type of investment works as financial support for your entire family. When you manage your investments in a disciplined manner.
- Investment plans are more than just a money-making tool. Having a long-term investment plan means you are also getting tax-saving benefits without putting in the extra effort.
- Since today a wide range of plans is available. Hence the investor gets the freedom to choose reliable flexible investment plans based on his/her needs like financial goals, tenure, risk appetite, etc.
To gain the maximum benefit, you must go with the result-driven investment plan for your safety, income, and overall growth.
Things to Keep in Mind Before Choosing the Right Investment Plan
You need to keep several factors in mind before considering the right investment plan. Here is the most common things thing every beginner should keep in mind:
- You must look for safety with guaranteed return possibilities on every investment plan.
- Just like safety, your safe investment plans should offer you a lower yield or rate of income return.
- No matter whether you are a new bee or a professional investor, you must evaluate all the goals of requirements based on your financial needs.
- No matter what, you must craft strong strategies to take pleasure in your investment plan progressively.
- It is better to evaluate both profits and well risk factors before making your final decision.
- Every individual must create a diverse portfolio to meet every financial need present as well as in the future.
Along with this, you can access your monetary goals, insurance coverage, number of dependents in your family, etc. while choosing an investment plan. This will help you make a sound decision and end up offering you perfect types of investments plan that can fit your future needs diligently.
So, Which Type of Investment Should You Trust More?
As there are plenty of ways to invest, investors usually get stuck when choosing one of them. If you are a novice investor, you may not know where to put your money. This may cause economic losses that you do not want.
When choosing an investment, keep the main goals in mind: safety, income, or growth. The first step is to decide which of these three characteristics is more important. Whether the current income is able to live or grow for many years after retirement. So that the investment can generate income later, or is safety (maintaining value) your top priority?
For example, if you are over 55 years old. So you need to develop a specific financial plan before starting an investment plan. A retirement plan is an investment type. This type of planning predicts your future sources of income and expenditure. And then predicts the value of your financial account, including deposits and withdrawals. You’ll know when you have a clear deadline. Whether you are investing short term, medium term, or long term.