Having excess funds makes one excited about exploring the best investment opportunities. And why not when you can make your money work hard for you. Investing options today are not just limited to one or two avenues.
There are multiple options available out there when it comes to parking your excess funds. The selection of the right avenue boils down to your investment goals and preferences.
Where to Invest Rs. 50,000?
If you have Rs. 50,000 to invest right now, here are some of the best avenues for investing, followed by helpful pointers!
1) Stock Market Investment
The stock market is among the highest return-generating avenues. You just need a Demat account to start investing in stocks. One can easily open free Demat account online through any stock broking platform by visiting their website or application.
As the stocks are more volatile as compared to other avenues, therefore, they carry the potential to provide higher returns. However, one needs to be careful before investing in the stock market. You need to properly analyse the stocks, the industry in which the company operates, the fundamentals of the company etc., before investing in them.
2) Mutual Funds:
Mutual funds are another lucrative option for earning market-linked returns. Mutual funds pool money from the investors and invest it in the underlying assets per the scheme’s terms. Mutual funds act as an excellent diversification tool for the investors as you can invest the funds in multiple assets like stocks, bonds etc.
One of the peculiar benefits of mutual fund investment is that expert fund managers professionally manage it. It relieves the investors from analysing and selecting the stocks and reduces the chances of loss.
Further, multiple options are available for investing in mutual funds like equity mutual funds, debt mutual funds, large-cap funds, mid-cap funds, small-cap funds, etc. You can select the one that ideally suits your investment goals and preferences.
The third option to invest your Rs. 50,000 is to go for bonds. Bonds act as a fixed income generating avenue for investors. It allows the investors to generate a passive income through interest payouts.
The risk is lower than stocks and mutual funds, as you receive fixed returns. Bonds are ideally suited for risk-averse investors looking for a secondary source of Income.
In a Nutshell
If you want to park your Rs. 50,000, you should always consider diversifying your portfolio. Diversification is known to reduce the overall portfolio risk.
Further, you can go ahead with equity instruments if you want higher returns. With a gamut of options available in equity investments like large-cap, small-cap or mid-cap, you can invest as per your investment goals and preferences.
Dhan provides a one-stop stock broking platform for all your stock market investment needs. Whether it is equity investment, initial public offerings (IPO) or derivative trading, you can invest anywhere.