Great 10 Types of Investment Strategy for Beginners

Investment Strategy for beginners

The people who are just joined their employment may be it is government or non government or self-employment. They should be interested in investment at the begging. Here I will tell Great 10 Types of Investment Strategy for Beginners. They must look into the matter of  prosperity and invest a part of money. Dear friends, money comes from salary or income regularly but they do not understand what to do for investing. 

Here I will discuss with you in the top 10 types profitable investment ideas, which are very helpful for beginners. I hope some of these are very helpful for you. Go through this article and understand what should you do for gaining profit for future. I personally using more than 3 options of this investment plan. Really I succeeded.

Disclaimer- this writing is for educational purposes only. Readers must apply this knowledge at your own risk. Neither the writer nor this site is responsible for any loss or profit of the readers regarding investment.

10 types of investment Strategy for beginners-

Let’s start top 10 types of investment plan. Do not skip after reading the names only. Look into the description and explanation each of the plan and then decide. So that you do not be a partial learner.

1.PPF-

The full form of PPF is public provident fund. EPF and GPF is for employees of non government and government sectors respectively. Like those PPF is conducted by an individual directly. A person can open his PPF account in a bank or post office. 

This investment is secured and best for long time investment. An individual can invest minimum rupees of Rs- 500 to maximum Rs-150000 either minimum one installment and maximum twelve. PPF account can be long for maximum 15 years plan. After 15 years you may extend up to 5 years more. This plan’s interest rate may always as same as GPF and EPF.

You may apply for loan against your investment of PPF after 3 years. Maximum 150000 investment benefit gain(tax benefit relaxation) under section 80c of income tax.

2. Mutual Fund-

Mutual fund is one of the profitable investment run by asset management. Sometimes mutual fund is called fund houses of land management. Investment amount is funding into share market, bonds, debenture etc. Profit /divided to the investors according to investment. Intermediator takes commission, which is declared to the investors in their terms and conditions page.

New employee, who have no knowledge about share market they can invest their money in mutual fund.

You may consult with your agent/financial advisor or may open an account in online platform. There are several online platforms for mutual fund. Who have knowledge in internet computer can easily open account of mutual fund.

3.Direct Equity or Share-

If you have knowledge the new process to invest directly into the share market equity. Share market are divided into two parts-
a)primary market and
b)secondary market.
Which company comes firstly into the share market scald initial public offerings, which is named it as primary market. Another is called secondary market. The company, which is already existed or in listed in the stock market previously.  

As a beginner you may take decisions or discuss with others and then invest for long time turn l. Initially initially you have to need to open a demat account. All transactions are operated through this demat account.

4.Real Estate Investment-

Buying land, house property and then selling in high price is called Real Estate investment. You may gain a profit. This field also you have to need some knowledge. The area where land house and property have demand or will be e-demand for the interest of local market. The places where are possible to develop economically. You should look into the land, houses and property of that places.

You should have to look into the the matter of rapid growth, future prospect, houses, company, commercial, hospitality and manufacturing. Money making industry may develop at that place and 30% to 90% profit may enter into your account. You should also research properly for high profit. The profit which is gained by you is called capital gain.

5. Investment in Gold-

You may look into the matter of gold deposit scheme. Gold ETF, Gold bar, Gold mutual fund etc. Gold deposit scheme was declared in 2015 budget..

Invest money to purchase Gold Mutual Fund or physically gold instead of gold bond. Here you get 30% to 50% return as profit. It is tax free if you invest 3 to 7 years locking period. It has no direct tax. Cash or  gold may be taken by the investor as is choice or requirement.

Read More- 5 Sectors will Great Boom after Lockdown.
How to become an entrepreneur.

6.Post Office Savings Scheme-

Government employees, salary persons, businessmen take this opportunity for long term investment. As government scheme this investment is in low risk. So it is for suitable for beginners. 

There are several types of post office saving scheme, that is National Saving Scheme, Recurring, Senior Citizen Saving scheme, Sukanya Samriddhi Yojana.

National savings scheme has no risk. May purchase  if you decide to invest for more than 10 years.

7. Company FD

Sometimes company collect money from the public directly. Investors invest their money into the company. actually the company borrows money from the public. It has opportunity of gain high interest than Bank. But companies should be selected carefully by the investor for periodic years. You cannot withdraw your money before maturity. This investment is not under any insurance and not controlled by the RBI rules for this type of investment. So it has high risk than Bank FD. But high gain.

8.Invest IPOS(Initial Public Offerings)-

New company or existing company in case of first time share issues for Capital Base/ Primary Market. New Company collects capital from public through primary market and then list in stock market(Secondary market). This is a risk factor for public as the public does not know properly about that company. But chances to return more, if the company growth in future. This is good for long term investment. Certainly you should study the company properly and then invest.

9. Insurance | It is not like other Investment Plan-

Insurance plans are very common for the people. There are several insurance plans available in the market. Insurance handles several risk factors in various fields of your life. These factors are  in case of losses, damages, illness, death etc. You should have a concept of the company as your compensation in case of loss damages, illness, death.  Oppositely, the company charges premium service from time to time. Terms and conditions should be studied by the investors. Every insurance plan has some premium charges and it has to deposit time to time.

Insurance plans has some opportunities- insurance give you compensation for loss, death, loss of property, illness etc.

Difficulties: it has less liquidity, maximum insurance plan has long term investment and has lock in periods. It is reserved for deposit premium from time to time. It has a pressure of continuing the premium and has less of moderate returns.

10. Investment Bond-

Some company borrows capital fr public and determine to return a fixed rate of interest. If any body do not want to invest share market, they can directly then they have some opportunities to purchase bonds. This is a better option for that person who are beginner for investing field.

Always try to purchase long term bond. There are several bonds available in the market. 

Company borrows capital from the public and the public are promised to paid interest against that bond. This is called a financial instrument. Bonds are generally secured. If a company cannot give back your money, the holders are assured to get back their money in another way.

It has low interest, so it is low risk, but profitable investment ideas.

There are government or non government sectors to provide several types of bond. Investors get there capital with interest

Types of Bonds-

  • a) Floating Rate,
  • b) Fixed Rate,
  • c) Installation index Bond, Rate may be increased or decreased according to market,
  • d) Option Bond.

 Option Bond divided into two parts-

  1. First one is bond with call option(Company declared whether the bond has call option or not, Investors may redeem their plan if  investors think that it is low interest. After redeeming he or she can reissue it again for avoid losses.
  2. Another option bond is Put Option. This option depends totally on public totally. Public/ investor may redeem this bond anytime and he/she can get interest at the rate of interest in the contemporary period. If the investors need some urgent money then he or she can redeem the bond. Or if the public think that the company is running in its poor condition then he/she can redeem the bond.

I hope you enjoyed those Investment Plan and gain some information. If you have any query or question may comment in the comment box or contact us at contact us page. Thank you…

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