If you are looking for simple ways to invest and make money daily fast, finding the right platform can be sometimes confusing. There are several ways to earn extra money every day.
When you invest money, you must also be aware of the risk involved. The returns of investment even from a small amount of money will depend on your investment length as well. You’ll be making much higher returns if your investment lasts at least a month.
Why investing is important
Investing is important to ensure that you have your financial needs met in the present and for the future. In simple words, investing provides you with financial security which you won’t be able to achieve by saving your money alone!
When you start investing your money, you are actually allowing your wealth to grow from the power of compounding.
For many people, (even for me a few years back), when the word ‘investing’ was heard, the first thing that popped into the mind is ‘large sum of money’ with the thought ‘I have no money to invest’ as the word investing is being tied to being rich.
However, investing money doesn’t necessarily require you to have a large chunk of money. In fact, there are many people who started with very less amount of money and become a billionaire now like the famous Warren Buffet.
Investing will help you to be able to –
- Grow your wealth.
- Help you save on taxes.
- Help you meet your financial goals.
- Help you to retire early or in your retirement.
- Stay ahead of inflation.
Main reasons why you should start investing your money
1. You are missing out on ‘free money’ when you don’t invest.
Everybody wants to have free money. However, what most of us weren’t aware of is one of the safest and easiest ways to make free money is by investing. The money you invested will give you free money from the power of compounding.
2. Your money loses value in a savings account.
If you are stacking money in your savings account, you are in for a loss because your purchasing power drops with the rising of inflation. A savings bank account will give you 2.5% maximum interest per annum for your money which is much lower than the current inflation rate. So, start to invest money and earn handsome returns instead of stocking cash in your bank account.
Investment saves money from the impact of inflation.
3. You want your money to work for you.
The hard fact is, that it is not entirely possible to become wealthy from the pay-check you are receiving monthly. You’ve worked hard for your money and if you want your money to multiply you must be willing to let money work for you by earning returns from the money you invested.
4. You can retire early or have a peaceful retirement.
When you started to invest regularly, you will be building your own wealth and financial security by the time you want to retire from your job. You can even retire early if you wish to. You sure won’t want to work till you almost dropdown if you have the choice.
And to be honest, you have the choice by starting to invest regularly so that you can reap the benefit of compounding in the future.
5. Investing has become easier now.
With the growth of infrastructure and technologies, there are hundreds of platforms that will cater to your investment needs with a few clicks of a button from the comfort of your home. These platforms did all the hard work for you.
You don’t need to sit in front of your computer for hours to study stock charts or to start investing. All you have to do is choose the platforms, set it and forget it.
Start investing with little money
As I mentioned earlier, there are hundreds of platforms where you can literally invest your money now, however, which one will give you the benefits depends on where you put your money.
With the rise of technology, there is also a huge surge of growth in scammers who are lurking in the open to take away your money with the promise of quick easy money.
The initial deposit on those sites can be as low as 10 bucks. If it’s too good to be true, it’s really too good to be true! So, do not get fooled by those schemes.
Everybody wants to invest in a platform that not only gives you good profit but very low risk! In reality, finding an investment platform is really hard to find because generally, if you want to reap high profits, you need to take some risk because when talking about investment, risks and profits are almost proportional to each other.
With low risk, you will get a low return and with high risk, you will get high returns. For example, if you invest in stocks, it’s a high risk, and there you will get a high return. And if you invest in a Fixed deposit, you will get a low return as it does not involve any risk.
However, it is very important that before you start your investment journey, you must understand some factors which will become the deciding factors for your growth.
Factors to consider before investing
1. Risk Profile
You must understand the risk involved in each of the products you want to put your money for. Remember, if you choose the high-risk ones, you also have the chance of a high return and with low risk, you will get a low return.
2. The Investment Time Period
Your time period for investing will also affect your financial status in the future. If you want to invest for a period of 1 to 3 years, it is advisable to choose products like fixed deposits, debt mutual funds, gold funds, recurring deposits, liquid funds, etc. which have low-risk and short-term investment products.
But if you want to invest for like 3 to 6 years or above 6 years, you can choose stocks, mutual funds with higher risks, real estate, ppf, etc.
3. Financial Goal
When you are planning for investment, you must set a financial so that you are able to meet your expectation after a set time. That means you need to plan ahead and invest according to that so that you will meet your goal at the end of the investment term.
Suppose, if your plan is to buy a house after 10 years, investing in fixed deposit or debt mutual funds won’t give you the returns you need. You need to invest in a high-risk portfolio so that you will also get a high return from your investment.
Where should you invest your money?
Here are some of the prominent platforms where you should invest.
1. Bank Fixed Deposit
Investing in a fixed deposit is one of the safest forms of investment and has very low risk. It is a secured investment product. You can invest in a fixed deposit if you do not have high return expectations and want to invest with also no risk, you will also get a low return.
2. Public Provident Fund (PPF)
Investing in PPF is beneficial if you are looking for long-term investment purposes for above 6 years. It is a guaranteed and secured investment product and will give you interest from 7.1% to 7.5% which is also tax-free.
3. Post Office Monthly Income Scheme
The post office monthly income scheme is very popular and you can open it from any post office in your area. It is also a guaranteed secured investment that will give you returns of 6.60% for a minimum period of 5 years. It has a lock-in period of one year. You can make a premature withdrawal with a penalty. There is no tax rebate.
4. National Pension Scheme (NPS)
NPS is a long-term investment platform that is sponsored by the government of India and is suitable if you want to earn pension money after you retire from your service. You will get a regular pension. You will be getting a ₹50,000 tax benefit. You will get an 8% to 12% return.
5. Mutual Funds
There are around 15000 mutual funds to choose from, and if you are like me, you might be intimidated by them. But, you need not be scared. There are a few basic things you need to keep in mind before you choose any mutual funds which I will tell you.
Mutual funds are categorized into direct and growth plans.
Basically, a mutual fund is a collection of stocks and you will find at the minimum, two assets in the mutual fund, and the maximum can be limitless. So, when you purchase a mutual fund, you become a part-owner of the stock or funds you bought.
You need to give a time period of 3-5 years to see your returns.
You must also remember that the past return result does not guarantee you will get the same return but if the return is stable, it is likely to give a good return.
Make sure you invest 30% in short term and 70% in long-term funds.
Some of the top mutual funds in which you can start investing right away are Gold SIP Fund, Parag Parikh Flexi Cap Fund, SBI Small Cap, Kotak Equity Fund, to name a few.
Best investing apps In India
1. ET Money
ET Money is made by the Times of India Group Company and it is one of the safest financial apps in the Indian market for transactions which is registered under AMFI and SEBI.
Some of the features of ET Money:
Allows you to check your credit score for free
Help you save tax up to ₹78,000 using the app.
Tools and calculators like – SIP calculator, NPS calculator, Rent receipt generator for income tax, CAGR calculator, FD calculator and Term insurance calculator.
Personal loans and Business loans apart from the LoanPass which is offered by RBL bank through ET Money.
It also allows you to track your spending and bills.
You can track your direct mutual funds, stock, fixed deposit, and NPS investment within the app with ease.
Kuvera is one of the best online investing and trading platforms you will find in the trading world. It is SEBI registered and offers Direct plans so that you need not pay a commission (which is mostly up to 1.5%). It has over 43 fund houses.
One of the prominent and useful features of Kuvera is Trade Smart. With TradeSmart, you can safely switch or redeem a fund, with the least possible tax implication.
The platform also helps you set a financial goal with helpful calculators, tax harvesting, etc.
3. 5 Paisa
The 5 Paisa is a mobile app that allows you to place mutual funds, buy digital gold, and insurance, and take personal loans from the app with a click. It also has 100+ predefined stock screeners, access to advisory products, and much more.
Some of the prominent features of 5 Paisa:
- Free mutual fund account.
- Multilingual trading app interface.
- Free Auto investor tool.
- Lowest DP charges.
The investment options 5 Paisa offers are:
- Mutual funds
- Personal loans
Groww is one of the popular apps which is a Karnataka-based online investment platform, which is registered with AMFI (Association of Mutual Funds in India) and SEBI (Securities and Exchange Board of India).
With more than 30+ million users all over the world, Groww users continue to increase. You can set up your account and start investing within as little as 5 minutes. The UI is simple and easy to navigate and adopt even for beginners.
Groww synchronizes all the data for you so that you need to spend countless hours studying which funds will give you the most benefits. All you have to do is just select your product.
Some of the most prominent features of Groww:
- Zero account opening charge.
- Company information.
- Customized watchlists.
- Live share prices and movements of stocks.
- Stock analysis within the app.
- Easy tracking of portfolios.
- Charting tools.
The investing options you will find in the Groww app are:
- Mutual funds – small-cap, large-cap, mid-cap, multi-cap for the long term.
- Gold Funds.
- SIP (Systematic Investment Plan).
- Balanced funds.
- Sector funds.
- International funds.
5. Angel One
Angel One, which is formerly known as Angel Broking, probably is one of India’s largest full-service retail brokers, specializing in online discount broking which provide stock and commodities broking, investment counseling services, managing finance, loans against shares, and financial product distribution and investing and trading services.
Some of the salient features of Angel One:
- Real-time online fund transfer.
- Technical chart indicators and overlays for technical analysis and trading.
- Self-developed Angel’s ARQ tool to enhance portfolio performance.
- Customized watchlists.
- Live share prices and their movements of all stocks listed in NSE and BSE.
- Personalized notification alerts for trades and ideas.
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