Invest your money in these assets to create wealth in 2022

Creating wealth takes work, but the right investments can speed up the process. Before investing in an asset, you must define your goals and risk appetite.
 

Investment goals are diverse. You may want to invest for retirement, plan a holiday, or buy a car. Your goals may differ from others, although the path remains the same. Before investing, you must outline your investment goals and select your duration. These factors help you choose the best investment option suiting your requirements and financial situation.

While some investments require a higher risk appetite, they offer better returns than the other investment options. The type of investment you choose depends on your risk appetite and the size of your funds. Still, here are the top investment options in 2022.

Where to invest your money in 2022?
 

There are numerous investment options, so it is normal for new investors to get confused. To ease out your research, here are the best investment options.

1. Stocks
 

Stocks provide a share of ownership in a company. They are highly dynamic, with their price changing every day. Therefore, you need a high-risk appetite to invest in shares. However, with portfolio diversification, you can minimise your risks in stocks.

2. Mutual funds
 

Mutual funds help invest in equities and debt instruments indirectly. Your invested funds are pooled with other investors and managed by asset managers, who decide on profitable investment options with their analytical abilities and experience. They are comparatively less volatile than direct equity and provide stable returns.

If you want to invest in the best mutual funds, you can do so conveniently through IDFC FIRST Bank. With mutual fund investments, you get professional fund management, tax efficiency, and liquidity as your investments aren’t blocked in all mutual funds.

3. Public Provident Funds (PPFs)
 

PPFs are among India's most trusted investment options. You can start your investment with just ₹500 and earn interest based on the decided rates. The invested amount is locked for a 15-years tenure. However, you get the option of partial withdrawals at various events. These are ideal for long-term capital gains and a suitable option for retirement savings. The returns are exempted from government taxes.

4. National Pension System (NPS)
 

NPS is a government-backed investment scheme that provides an alternative to pensions. Like PPFs, national pension schemes are safer investment options and ideal for retirement savings. Your deposits are invested in stocks, securities, government bonds etc., to generate returns. The investment matures when you reach the age the 60 years.

5. Real estate
 

The price of real estate increases almost every year. They are one of the safest and the most preferred investment tools for long-term capital gains. However, real estate investment requires significant capital, and you may also need to pay property taxes based on government regulations.

6. Gold
 

Gold has been an investment instrument for centuries in India. People would buy and store their gold for future challenges. It is prevalent even today, although now you also have the convenience of buying gold in fractions and avoid paying making and other charges. In addition, you also have the option of investing in gold ETFs and gold mutual funds. You can earn decent returns and hedge your portfolio against uncertain market conditions.

Where should you invest?
 

Investors often wonder where they should invest their capital when beginning their investment journey. The best way to go about it is to define your financial goals and investment duration. Once you have outlined your financial goals, you can in stocks, mutual funds, or gold and create wealth.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.