Rating:

Investment of money is essential to protect money from wrath of inflation. Not all investment options are structures to beat inflation. This is the reason why a common man must know about best investment options to invest money in India. Inflation beating investment options are risky and one shall not accumulate only these in their investment portfolio. A clever mix of all types of investment options shall be included in investment portfolio. When it comes to investing in inflation-beating-investment-options, timing the purchase of is very essential. So on one hand inflation beating investment options are risky and on other hand we need to time the market to buy them. This is the reason why good investment is a skill (risk aversion and timing) that is essential for everyone to learn. We all must protect our money from wrath of inflation. For this we must create a well diversified investment portfolio. Let us see what best investment options are available how and where to invest money in India. Selection of correct mix of investment options in ones portfolio is essential.

What is SWOT Analysis?

SWOT analysis can help us evaluate an investment option. If we only know more about an investment option, we can wiser investment decisions. SWOT analysis helps us to scrutinize an investment option on basis of its STRENGHT, WEAKNESS, OPPORTUNITY & THREAT. SWOT analysis is very cleverly designed to help unvestors get clear understanding of various investment options. Though SWOT can be applying to almost every thing in life, but here we will use it for investment options only. It worth evaluating investmens like this. Idea of doing SWOT is to understand how STRENGTH (S) of an investment covers up its WEAKNESS (W). How we can maximize the OPPORTUNITY (O). How we should protect ourselves from potential THREATS (T).

Best Investment Options 1: Mutual Funds

There is reason why I am proposing mutual funds among the first investment options. If you are a beginner in investment who wants to know how and where to invest money then mutual fund should be the first logical choice. Why I am saying that mutual fund should be the first logical choice for beginner because this is a no-brainer option for beginner. Mutual fund companies has fund managers who collects money from citizens and invests this pooled money in different investment option. The options in which the pooled money is invested depends on the objective of the mutual fund. If one is not aware about different investment options then mutual fund becomes the obvious choice. Once the pooled money is generated it start making loss or profit depending on the situation. The income gets shares between the investors who has invested in that mutual fund.

Typical fund objective can be mainly categorized into three main categories. Mutual funds can be either growth focused, income focused or a mix of growth and income which is called as balanced funds. Growth focused funds mainly invests in equity and hence holding time shall be long term. Income focused funds invests in securities that are risk free like bonds or debentures. These risk free options generate regular income which is paid as dividends among unit holders. As the name says, balanced funds invests in both equity and risk free securities. The return of balanced fund is between long term returns of growth and income funds.

SWOT ANALYSIS OF EQUITY LINKED MUTUAL FUNDS