How_To_Invest_Wisely_And_Make_Your_Money_Grow

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					How To Invest Wisely And Make Your Money Grow

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444

Summary:
Wise investments of your spare funds can be a great way to grow rich.
These days, savings accounts offer very low interest and it is a waste to
allow your money to lie in them. Based on your appetite for risk and your
financial needs, you have various other investment schemes and options to
choose from.

It is always safer to have a diversified portfolio, that is, to spread
you money around in various types of schemes, so that the risks and
returns get balanced out. The co...


Keywords:
investing,mutual funds,stocks,bonds,money,business


Article Body:
Wise investments of your spare funds can be a great way to grow rich.
These days, savings accounts offer very low interest and it is a waste to
allow your money to lie in them. Based on your appetite for risk and your
financial needs, you have various other investment schemes and options to
choose from.

It is always safer to have a diversified portfolio, that is, to spread
you money around in various types of schemes, so that the risks and
returns get balanced out. The company you work for would have a 401(k)
plan which is always a safe bet. In this scheme, they will deduct a part
of your salary every month and give it to an independent financial source
to manage the investment, so that you get a healthy return at the end of
your tenure. For those of you with greater risk-taking ability, stock
markets or mutual funds can be a good idea. In stock markets, you can buy
shares of companies listed on the stock exchange. Usually, good companies
offer dividends along with a fair return on your investment. Dividends
are not mandatory, but a lot of companies like to distribute their
profits among shareholders as dividends.

Some companies prefer to reinvest the profits into expansion projects
instead of declaring dividends. These reinvestments in turn should lead
to further profits. However, the stock markets are unpredictable and a
lot of people who dabble in stocks with the purpose of making some quick
bucks may end up with losses instead.

Mutual funds are relatively safer investments, though they are also
subject to market risk. Mutual funds are investments made in the stock
market by financial managers with a fund collected from actual investors.
There can be sector-specific mutual funds for instance those that invest
in Pharmaceutical or IT or infrastructure companies only. Whatever be the
mode of your investment in the markets, it is vital that you track these
on a regular basis. If the prices of your shares or mutual funds decline
at a time when there is a slowdown in the economy as a whole, there is no
need to panic and sell at a loss. The markets will quite likely bounce
back to where they were or perhaps even better. However, if the markets
are strong and yet, the value of your mutual funds is on a decline, it
could mean it is not well invested and it would be advisable for you to
sell and move your money into something that will generate better
returns. A financial consultant can advise you about the market situation
and what types of investments will suit your needs best.

				
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