Making money is good, but making your money earn some more money for you is even better!
Times have changed, and you can no longer depend on anyone stream of income alone. In that case, it is implausible that you may ever have enough to lead a comfortable life.
So how to diversify your source of income? How to earn more?
First, gather yourself; I am not here to tell you about a ‘get rich quick’ scheme! What we are here to learn is how to become financially savvy individuals and grow our wealth.
There are various ways to develop multiple streams of income, the most prominent being investing. If you are sitting on cash and it’s scratching an itch, then it’s time to put it to work.
Here is how you can quickly put your money to work:
How To Earn Money By Investing
I have divided investing into three components:
Each of which may suit different investors. If you happen to make it to the end of the article, you may get an idea of what suits you best.
#1. Instruments yielding exponential ROI
Indians and Gold have a historical relationship. We have been investing in gold for ages, and it has always proved itself to be one of the lucrative investment options out there.
Investing in Gold does not require a lot of time. Suppose you have made up your mind to invest in it, you can buy it from a store nearby or even online.
Gold has yielded an average return of about 8.87% over the last 10 years.
It is an excellent hedge against inflation, which means when the stock prices fall, gold prices will rise and vice versa and hence a great way to diversify your portfolio.
If you are sceptical about holding gold physically, it is also available in various other forms such as digital gold, Gold ETF’s [Exchange Traded Funds] etc.
Cryptocurrencies like Bitcoin are the new age investment vehicle that can yield exponentially high returns if you can get right.
Looking at the data:
Bitcoin- one of the most popular cryptocurrencies have yielded a 3500% return over the past five years and 101% in just six months, from March-August 2020. Quick is it not?
These soaring returns come at the risk of high market volatility that you shall learn to withstand.
Cryptocurrency investment has become super accessible with crypto investments starting from INR 100 at the CoinSwitch Kuber app. The KYC takes less than 7 minutes, and the transactions are carried out instantly.
Hence, it is an option that can yield the maximum return to you if done right.
#2. Instruments Battling Inflation
The instruments in this element are low risk – low return options, ideal for traditionalist investors who do not want to experiment with their returns and are just trying to protect their savings from inflation.
The options here are more of long-term solutions and may not give you quick returns instantly, but investing in these instruments does not require much of your time.
- Public Provident Fund (PPF)
PPF is a secure and long-term investment scheme with stable returns. You can invest in PPF by holding a PPF account. The investment will start generating returns quickly but can be accrued only after the fund matures.
The government determines the interest earned in PPF. Currently, the interest rate of PPF is 7.1%.
- National Pension Scheme (NPS)
NPS helps you create a corpus for your retirement, wherein individuals between the ages of 18 – 60 contribute throughout their working life. And on retirement, they can withdraw a chunk of the corpus and use the rest to get an annuity and secure a regular income.
There are two ways you can manage your contributions made in NPS – Auto choice or Active choice.
- Auto Choice, the default approach where a fund manager automatically manages your funds based on your age profile.
- Active choice, you freely decide on where you want to invest and how much and actively manage your fund.
The NPS returns vary depending on your investment classification and contribution, but an 8-12% expectation is a fair estimation.
#3. Instruments yielding decent ROI
These instruments are moderate risk options that, if managed well, can generate a good sum. They also can generate quick returns if chosen wisely.
- Mutual Funds
It is an investment vehicle where an investing company acting as a fund manager pools money from retail investors and invests in shares and bonds. You can leverage the company’s expertise to manage your fund and earn maximum capital gains via Mutual Funds.
Investing in MF is different from investing in Direct Equity. Here, you are just investing your funds with a fund manager who directs it towards various securities of their choice.
Mutual funds are less volatile than shares and give you the security of shared risk. The MF returns vary based on your risk profile and can variably yield a return of 8-12% annually.
You can also invest in MF through monthly or quarterly SIP (systematic investment plan) instead of investing the entire amount in one go.
- Equity Markets
The equity market is nothing but the stock market; it involves trading and investing in NSE and BSE stocks. The stock market is comparatively more volatile than mutual funds and wants you to have a basic sense of stock selection and the market.
Investing in stocks secures you a stake in the company and yields return based on its performance. The average long-term returns from equity have been about 10-14%.
How To Invest Money To Make Money Fast !!
Cheers to making it to the end of the article!
Earning quick returns from your investments might sound difficult, but it can definitely be achieved if you are smarter with your savings and investments.
A little research with enough informed decision can make your investing journey highly rewarding. But make sure you are not making any investment decisions out of FOMO (Fear Of Missing Out).
Lastly, I know this list is a little exhaustive. You need not do everything mentioned here all at once. You may select and go ahead with a few mediums which may be ideal for you.
[su_note] KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing. [/su_note]
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
Table of content
Subscribe to Our Newsletter with exclusive content.