Futures Options Strategy Guide
Here are 8 basic futures and options trading strategies, in a nutshell, to help you kick off your F&O trading journey
15 Jul, 2022
5 min read
987 Views
There are several ways to earn potentially high returns in India, but you must first determine your financial goals. The next step is to determine your monthly cash flow, choose the appropriate funds, and then begin investing.
Where To Invest Money To Get Good Returns?
The ideal investment alternatives would depend on how long your financial goals would last. A short term period is one that is less than three years, whereas a long term period is one that is more than ten years. The following choices are suitable for both long- and short-term horizons:
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Real Estate
Greater safety and transparency for purchasers have been provided by regulatory bodies like RERA. Today, there are fewer fraudulent operations. Real estate is increasing once again as a result of rising consumption, increased urbanization and more readily available mortgage choices. Long-term financial gains are possible in the cheap home market niche. If you get a mortgage under Sections 80C and 24 of the Income Tax Act of 1961, there are several tax advantages.
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Mutual Funds
Equity mutual funds can be ideal alternatives when it comes to long-term wealth growth to attain financial goals like retirement or property ownership. However, it is advised to either use an independent financial expert or go online and choose a good mutual fund based on historical performance in order to maximize the potential of mutual funds. As there are several kinds of mutual funds depending on risk, such as mid cap funds, big cap funds and small cap funds, you must also evaluate your level of risk tolerance. Equity investments continue to be more tax-efficient and provide potentially higher returns than other asset classes, even with the reintroduction of long-term capital gains tax. You may also get tax advantages under section 80C from a few mutual funds, such as the ELSS.
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National Pension Scheme
This government-sponsored programme guarantees the subscriber a minimum pension. Under section 80CCD, benefits are available up to Rs. 1.5 lakhs annually. There are several investing alternatives available here, and if you want to achieve big results, you may choose the aggressive option, which invests 50% of your money in stocks, 30% in corporate bonds, and 20% in gilt funds.
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Stock Market
Stocks can be a good choice to get potentially high returns if you have a solid grasp of them. Find stocks that are now selling for less than they are really worth. One may start investing in modest amounts of these stocks in order to accumulate wealth over time.
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Initial Public Offerings
An IPO is when a firm first makes its stock units open for buying and selling to the common public. Before making an investment in a firm, it's critical to comprehend its foundation and possibilities for the future. Investors in successful initial public offerings (IPOs) have seen many times their original investment return.
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Public Provident Funds
A PPF account is supported by the Indian government and is available through banks and post offices. It has a 15-year term, however withdrawals are permitted starting in the seventh year. Taxes are not due on the invested capital, interest, or maturity sum. Every three months, the interest rate is changed in accordance with the rates on government bonds.
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Systematic Investment Plans
Mutual funds' systematic investment plans provide those who can't invest a large quantity of money at once the option of investing small sums on a daily, weekly, or monthly basis. By investing in stock markets, they are able to take part in the process of long-term wealth building. Starting with only Rs. 500 per month, you may gradually raise it as your income rises. You gain from rupee cost averaging with this form of investing.
Wrapping Up - Where To Invest Money?
The investments listed above include both fixed-income and financial market-linked assets. The process of creating wealth involves fixed income and market-linked assets. Market-linked investments have a high potential return but also a high potential danger. Investments with a fixed rate of return assist in maintaining collected money in order to achieve the desired outcome. Making the most of both worlds is crucial for long-term objectives. Consider risk, taxes, and time horizon while selecting your assets.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.
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