Options for investing this Diwali: There are many ways to invest, from corporate bonds and gold to stocks and index funds, which may help you build wealth and be financially stable in the long run.
During Diwali, lights are used to celebrate, and Goddess Lakshmi stands for wealth. During the Samvat year, it is smart to make plans for money and lay the groundwork for financial stability (the Hindu New Year). People can build wealth and plan for their financial future in many ways, from buying gold to buying stocks.
The primary market
Initial Public Offerings (IPOs)
They are great ways to invest for the long term. After a short period of calm, the market for initial public offerings (IPOs) has recently exploded. As the economy and business growth continue to rise, many businesses will use the primary markets to raise money and list their subsidiaries or verticals.
Equity
Long-term returns from stocks have always been better than short-term changes in the economy and market. They may also do better than other asset groups in the long run. Value investing is a good place to start. Value investors are like stock scouts because they look for cheap companies or stocks that other market participants haven’t found yet. Instead of buying stocks, they put their money into businesses. Rakesh Jhunjhunwala and Warren Buffet are two examples of value investors.
Investing in stocks with high dividends could also be a good idea, especially when the market is very volatile. Some Indian businesses are known for giving out attractive dividends. Since they are still stocks, high-dividend stocks still have the chance to go up in value.
Index funds
Now is a good time to start investing with them Around Diwali, and index funds have been known to give better long-term returns.
Since the market can go up and down and there is a real risk of losing money, and if you don’t know much about the market, you may not want to invest in stocks. Here are index funds. An index fund is a type of mutual fund that looks like the portfolio of an index. For example, a Nifty index fund would track the NSE Nifty index and hold a mix of the 50 stocks that make up the Nifty. The results of an index fund would be similar to those of the index it tracks. So, asset allocation with index funds gives you diversification, lowers risks, and increases long-term returns.
Corporate bonds
Corporate bonds are a good choice for investors who don’t want to take too much risk and want a stable way to make money and good returns in a time when fixed deposit rates are going down. These bonds are made by both private and public businesses. Investors should only choose companies with a good reputation, a long history of paying their bills, and a high credit score.
Gold
Gold has been one of the best investments this year. It has gained more than 30%. Gold is seen as a safe investment option because it tends to do well when things are uncertain. Gold is likely to keep its shine for a long time, since the Covid19 pandemic shows no signs of stopping and geopolitical problems in India’s region and around the world are getting worse. Gold is also a good way to protect against inflation. During the Dhanteras celebration, it is said to be lucky to buy gold.
If you would like to open a Zebu trading account and start investing in any of these instruments, please get in touch with us today.
Leave a Reply