What if I tell you that you don’t have to wait till you are 18 to start investing And knowing the Best Ways to Start Investing could be the one thing that makes you Rich. But before we start that there is something you should know “All investments come with some Risk” PLEASE CONSULT YOUR SENIORS & KNOW THE RISKS before Start Investing.
Why do we need to Start Investing Money?
Investing is a way to set aside money while you are busy with life and have that money work for you so that you can fully reap the rewards of your labor in the future. Investing is a means to a happier ending. Legendary investor Warren Buffett defines investing as “The process of laying out money now to receive more money in the future.“
The Basic goal of investing is to put your money to work in one or more types of investment Sectors in the hopes of growing your money over a period of time.
Top 5 reasons to start Investing as early as possible
- To benefit from power of compounding
- To add financial discipline to your life
- To improve your risk appetite
- To generate wealth for your future self
- To save taxes
How much do I need to start investing?
If you don’t have much money or If you’re a typical working person or a beginning investor, you should know that it doesn’t take a lot of money to start investing, You can begin with as little as Rs. 500 to Rs. 1,000 and add to it as you earn and save more money.
WHERE YOU CAN’T INVEST?
If you are Below 18, you can’t Invest in Shares because when you are 18 years old, SEBI doesn’t allow you to Open a Trading Account and without a Trading Account, you can’t Invest in Shares.
Does that mean you CAN’T invest in equity?
Well No, You can still invest Indirectly in equity by following the Best ways to Start Investing so that you can grow your money into Crores. What you can do if you are Below 18, You can open a Demat Account and can Start Investing indirectly in Equity.
Difference between Trading and Demat Account?
|Trading Account||Demat Account|
|A trading account is for buying or selling shares on the stock exchange.||A Demat account is for holding stocks, bonds, mutual funds,|
and Exchange Traded Funds(ETFs), and other securities
|It has to be linked to a bank and|
a Demat account to trade
|It has securities that were converted from physical to|
electronic form or recently bought from an exchange
|For transacting, you need to have a|
trading account with a brokerage house.
|As shares in the Demat account are in an electronic form, with|
stringent authentication processes, there is no risk of theft, forgery, tampering of shares
***Stock Exchange: The stock exchange in India serves as a market where financial instruments like stocks, bonds, and commodities are traded. It is a platform where buyers and sellers come together to trade financial tools during specific hours of any business day while adhering to SEBI’s well-defined guidelines. for example:BSE NSE etc…***
Where you can Invest?
So here are the best ways to Start Investing and can become Rich:-
- IPOs: An initial public offering (IPO) refers to the process of offering shares of a Privite Corporation to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors.public company. This process also creates an opportunity for smart investors to earn a handsome return on their investments.
- Mutul Funds: A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio.
- Fixed Imcome Securitiess: A type of debt instrument that provides returns in the form of regular, or fixed, interest payments and repayments of the principal when the security reaches maturity. The instruments are issued by governments, corporations, and other entities to finance their operations.
- BANK FIXED DEPOSIT:A Fixed Deposit, you put a lump sum in your bank for a fixed tenure at an agreed rate of interest. At the end of the tenure, you receive the amount you have invested plus compound interest
- POST OFFICE FIXED DEPOSIT:Fixed deposit scheme that is offered by the Indian Postal Services, an individual can earn a guaranteed return on the money deposited for a fixed period of time.
- CORPORATE FIXED DEPOSIT:Term deposit which is held over fixed period at fixed rates of interest. Company Fixed Deposits are offered by Financial and Non-Banking financial companies (NBFCs). The maturities of various company fixed deposits can range from a few months to a few years.
- PUBLIC PROVIDENT FUND:A retirement savings scheme offered by the Government of India with the aim of providing a secure post-retirement life to everyone. The minimum deposit you must make in the account per financial year is Rs. 500 and it can go up to Rs. 1.5 lakh
- SUKANYA SAMRIDDHI YOJANA: Government of India backed saving scheme targeted at the parents of girl children. The scheme encourages parents to build a fund for the future education and marriage expenses for their female child.
- NATIONAL SAVINGS CERTIFICATE: NSC, is an Indian Government savings bond, primarily used for small savings and income tax saving investments in India. It is part of the postal savings system of India Post.
And you know the best part? Most of allow you to start investing in them with sums as low as Rs.1000 So you don't have to wait till you have a lot of money before you invest in them and your Small amount of money can grow into a large sum over a period of time. So Start Investing Today...