Fears Which Keep People Away From Investing !!

Majority of individuals place their savings in either a savings account, or the conventional fixed deposit which generates good interest. However, interest rates keep fluctuating and they may not give great returns all the time. One of the ideal ways to grow your wealth is to invest. Though many people wish to invest and multiply their money but there are certain fears which stop them from doing so. They include:

1. Fear of not having adequate information:
Many people don’t have sufficient knowledge about the various financial vehicles and their respective categories, working of the stock market, creating a balanced portfolio etc. As a result, they are scared that they might choose the wrong investment and suffer losses. This information gap keeps them away from investing.

2. Fear of market volatility:
Indian financial markets have always experienced several downfalls and rises. Sudden drop in the Sensex due to economic, political causes can lead to losses amounting to crores and wreak havoc in an individual’s portfolio; a major factor which refrains people from putting their money in market-related investments.

3. Fear of not having enough money:
There is a common misconception that if one wants to invest, a big amount of money is required. Individuals fear that they don’t have adequate money and believe that only investing a large sum can yield profitable returns.
 

4. Fear of being conned:
Recent chit fund/equity scams which have shocked the Indian markets have put various doubts in the minds of investors. Instead of putting money in an investment scheme, they prefer the safe fixed deposits offered by banks where their money is safe and ensures almost zero risk of losing money.

Placing your money in viable investments is a must if you want to achieve your monetary aims. Take the advice of a financial advisor who can help you overcome these fears and help you invest your hard-earned money at the right time and in the right financial instrument.

4 Smart Tips To Utilize Your Incremental Income !!

All employees look forward to the appraisal period during their professional tenure since it indicates a rise in their salary. However, most of them utilize this additional income the moment they receive it which is a huge mistake. Instead of spending your appraisal income by impulse on things you don’t require, you should build your wealth with this extra cash. Listed below are some successful ways worth a try:

1. Take a step further in achieving your goals:

When you get an appraisal, one of the first things you should seriously contemplate is filling the gaps in your investment portfolio; invest in a profitable new vehicle or put more money in your existing investments. For example, if you have an SIP where you invest Rs.3000 every month, you can increase it based on the surplus income. Moreover, you can open a recurring deposit account and start saving for retirement.

2. Learn a new skill/course:

Jobs are getting fiercely competitive and it’s vital for professionals to be well-read in their chosen field. If there’s an executive training program which would boost your career but the fees are high, you can make use of the appraisal amount and enroll for it.

3. Build a fund for emergencies:

Unfortunate events can occur anytime and you may not be prepared for it financially. The additional income can be saved every month to create a corpus for emergencies such as hospitalization due to accident or chronic illness, loss of job etc. Deposit the fund in a savings account directly so that you are not tempted to spend it.

4. Seek advice of a financial advisor:

If you are not sure about how to make the most of your appraisal amount, it’s best to consult a financial expert who can guide you in the right direction. These professionals know exactly where you should put the surplus money and how you can gain maximum benefit.