Investment Planning: “Crash and burn” means stumbling in a hurry, so it is important to be careful and find investments that give steady returns over time.
New Delhi. Many of us prefer basic methods when it comes to saving, such as bank deposits (FD), pension schemes, insurance or mutual funds. Let us tell you that the year 2020 was a different experience for all of us, who taught investors how to achieve stable returns with measures to protect their money from risk. As interest rates fall and financial asset valuations are changing rapidly, you must be looking for a safe investment from the fluctuations of the capital market. When considering such options, it is important that you avoid any scam or quick rich scheme. “Crash and burn” means stumbling in a hurry, so it is important to be careful and find investments that give steady returns over time. Let’s know where to invest money? 1.
When it comes to investing, one of the oldest and tested options is to buy any business directly. Most of the rich people also made money by doing business. When you buy a ready-made business, you avoid the hassle of setting up the initial and when you get a ready-made business earning, then you can focus on improving cash flow.
Since the Corona epidemic, many deals / business offers have been listed on business selling websites. Most of these offers are due to the uncertainty in the market, but a sensible investor can identify the opportunity, buy a business at a cheap valuation and earn a good profit in the long term. Online platforms such as SMERGERS, BizBuySell and BusinessForSale help business buyers find and shortlist the best opportunities that match their needs. To find and buy the most accurate business, you can first examine its data.
Financial market has its problems. It is more difficult to get a loan for a small business than a big business. A long and complex application process, applications being rejected many times are some of the experiences that small business starters avoid the old ways of taking a bank loan. There are many P2P platforms available to help you do business, Can raise funds from peer-to-peer (P2P) lenders instead of banks. Generally, these types of loans are given for short duration, few months or few years, during which they are repaid and used for a particular business need. Research has found that in the coming years, a 10-fold increase in P2P lending can be seen. In the international market,
Taking a franchise is becoming a popular means of investing in franchise because investors can, through it, step into the business world at a lower risk than starting a new business. A franchise business will have an established brand name with a well-known and tested revenue model. In addition, the franchise partner can seek help from the franchisor in terms of marketing, training, hiring and operational guidelines. This format is especially convenient for working professionals who want to earn additional business income in addition to their monthly salary. You can use platforms like Franchise Direct, SMERGERS, Franchise India to shortlist the brands that fulfill these objectives.
Investing in a Co-Ownership CRE Most retail investors feel that only residential property is the best real estate investment. While apartments and plots were the most popular methods of investment. On the other hand, in the last decade, it has lost its luster as an investment option and the situation has worsened since the introduction of Kovid-19. However, commercial real estate (CRE) has always been a popular asset class among HNIs and institutions. These properties not only provide year-on-year profits like equity, but also provide fixed monthly rent, just like loans, which also gets a 7-10 percent increase by removing management expenses. New-age co-ownership platforms such as PropShare, Strata etc. join together a group of investors who can buy a space like premium office and commercial property by investing with a ticket size of at least 25 lakh rupees. India has now started REITs, which are essentially publicly traded units of CRE properties, where one can invest ticket sizes as low as Rs 50,000.
Startups are a new way of doing business in which ideas, passion, execution and flexibility drive business forward. For this, initial capital is raised from investors, but over time, they also have the potential to become a billion dollar company. According to a data, 98 percent of startups fail. Investors should be prepared to lose their entire investment in any startup. Along with this, many investors who invest money in startups also earn 30x-40x times on their investment. More than 500 start-ups have been very successful, with startups in the US, China, UK and India leading the way. Recognized investor, AngelList, Lets Venture, to find and invest in start-ups with high growth potential and competitive ability such as patents or strong customer bases.
It is a controversial space where there is a strange game of risk and profit. On the one hand there are believers like Elon Musk who believe that the future of crypto is bright and they have started accepting cryptocurrency payments for real world products. On the other hand, there are many stalwart industrialists advocating the government, who consider it a scam and consider it wrong to the extent of crime, but as an investor many people have become rich by investing in it. You can see apps like Coinbase, Binance and also, apps made in India such as CoinSwitch Kuber, CoinDCX, WazirX are the apps through which you can invest in small amounts. ETFs like BTTC and EBIT exist for those who do not want to open a crypto wallet separately.
