There are three variables that impact the total return investors receive from an investment: the amount saved, the return rate, and the amount of time invested.
Most investors spend a good amount of time and effort trying to increase all three. But what if we can’t do all three, if we’re inhibited by time, skill, knowledge, or ability (after all, many fund managers spend a lifetime trying to milk out an additional 1% return with limited success.)
If we could only focus on one of the factors to impact, which is the best option? What is the best way to achieve better returns?
The secret of building a huge investment corpus lies in investing early to maximize returns from compounding.
If you do not like Risks, then opt for traditional investment instruments like PPF, NPS, KVP, NSC etc., to build up a secure corpus.
Recurring deposit are also an ideal investment option for small saving Investors as they can get started their investment right away with a minimum contribution of Rs. 100/- per month.
The interest rate will however depend upon the monetary cycle. The tenure of investment is from a minimum of six months to a maximum of 120 months.
If an investor need to inculcate a regular savings habit, then Systematic Investment Plans (SIPs) are the best option. SIPs are suitable for investors who are risk averse and also looking for decent returns. CAMS as RTA handles a whole lot of Mutual Funds which offer wonderful very decent returns and CAMS takes pride in servicing such Asset Management Companies. To Know the list of AMCs serviced by CAMS, please visit www.camsonline.com
Once the basic investment targets are met, then an investor can look out for bolder avenues like investing in equities, commodity market, Gold ETFs, Mutual Funds with aggressive Equity profiles and and Real Estate.
But the returns on these investments can vary depending upon the performance of the market and therefore can be deemed as speculative. As always, please read the terms of offer carefully before investing in any instrument of your choice.
It is also desirable to maintain a contingency fund sufficient to meet one’s expenses for at least six months. Such contingency funds should be invested in a mode of investment instrument which is liquid as well as provide higher returns. Liquid funds seem to be the right option for such class of investments.
CAMS has a variety of information available in its website and also share excellent inputs on Investments and Savings in our Facebook Page. Like us on https://www.facebook.com/CAMSRTA . To watch informative videos visit https://www.facebook.com/CAMSRTA/videos .