7 Best places to invest money

Here are 7 Best places to invest money with the advantages and disadvantages of each one

1.Stock Market

Stock Market is the best place to become the millionaire but learn the rule before playing the game of stock market because the stock market is the game of patience and compounding.

If you have the courage to take the risk and want to learn the rule of investing in the stock market then read this where I talked about all the necessary rules and warnings to take care before stepping in this field.

Pros

  1. High return
  2. Can invest in small amounts
  3. Risk can be minimized by diversification

Cons

  1. High Risk
  2. No fixed return
  3. Beneficial only if investing for long-term.

2. Mutual Fund

Mutual fund is the safe version of  Stock market investing here you have to care about two things the first one is you have to invest only in SIP mode and second is invest only in good performing mutual funds and that’s it. But remember Mutual funds are subject to market risk and you may lose money in this process but I can say one thing with confidence that if you have invested in the good trusted mutual fund and your motive is long-term investment then you will never lose money instead you will earn exceptionally high returns.

Pros

  1. High return
  2. Can invest in small amounts
  3. Medium risk with high return.

Cons

  1. No fixed return
  2. Beneficial only if investing for long-term.

3. Online Peer to Peer Lending

Online Peer to Peer lending is the best and only options if you want both high returns on your investment and monthly source of income. Unlike the above two options where there is no guarantee of return and fixed monthly profit on your investment Peer to peer lending has both advantages but it carries the risk of losing the capital in case of default by the borrower but you can minimize this by diversifying the capital in more numbers of borrowers.

Some examples of online peer to peer lending are upstart, faircent, Lendbox.in

Pros

  1. High return on investment
  2. Can invest in small amounts
  3. Fixed monthly income.
  4. Can invest for long-term as well as short-term.

Cons

  1. Having risk of losing money in case of default. (But can be minimized by diversifying the investment into multiple borrowers )

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4.Real Estate

If you have a large sum of money and want to take almost zero risks then this option is for you because in 98% of case land price never go down and especially in developing country like in India. But the biggest disadvantage is you have to invest in a lump sum amount for the long-term. Also if you are expecting the monthly income from it then you have to make sure you buy the commercial property and find the tenet for it in order to earn income from it.

Pros

  1. High return
  2. Low risk with high return.

Cons

  1. No fixed return rate.
  2. No fixed monthly income on the investment.
  3. Required large capital to invest in lump sum amount.

5. Government Bonds

If you don’t have any experience in Real Estate and you don’t have a large sum of money for investing in real estate then invest in Government bonds because they provide 100% safe investment with slightly greater return then fixed deposit but if you are greedy for higher returns then this options is not for you.

Pros

  1. 100% safe investment.
  2. Can invest in small amounts.
  3. Slightly higher return than Fixed Deposits.

Cons

  1. Low return on investment
  2. No monthly income on the investment.

6. Fixed Deposit

This option is recommended for senior citizens having age more than 60 years and I am saying this because this option has two main quality first is it is 100% safe and second is it can provide you fixed monthly income on your investment so that you can depend on it.

Pros

  1. 100% safe investment.
  2. Can invest in small amounts.
  3. Fixed monthly income.
  4. Guaranteed return on investment.

Cons

  1. Low return on investment.
  2. Taxable income if you are in the tax bracket.

7. Gold

This is the last and least preferred method of investing because of many disadvantages in this method some of them are

  1. No fixed guaranteed return
  2. No fixed monthly income on your investment.
  3. Unable to invest in a large amount. (Because government/thief will catch you)
  4. Low return on investment

It is only suitable for those who have a large amount of black money. 🙂 Just joking.

Do you know any other place to invest with the high return but with low risk please let us know in the comment box.

Happy Investing.

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