Personal Finance Awareness

How to invest money and get rich

3 easy ways for girls to generate additional income
Today if you learn to save me, tomorrow I will be saving you, I am money. Money is not everything but it’s definitely close to everything. Money joins your future to your present. If there is money then you are watching videos on the phone. It is the reason for the internet data on your phone. Money is the thing that fulfils your and your family’s dreams. Money is that tool which if you learn to invest today your tomorrow will be beautiful. But if you don’t know how to invest you will regret it. That is the objective of this article to make your tomorrow beautiful rather than having regret. Below I will tell you how to invest your money so that it multiplies and makes your future beautiful

Before that, you need to read a story

There was a man who was known for his cleverness. Due to this, even the king praised him. This led to people feeling jealous towards him and they falsely implicated him in a crime that he had not committed. They told the king that he committed this crime. King got angry over this fact so he decided to hang him, but that man was once his favorite so he asked him for his last wish. Man’s last wish was that after his death there should be no hardships for his family. They should be well taken care of. The condition he gave was that on chess block keep a grain of wheat and double it in consecutive blocks. In the 12th block, there were 2048 grains, at 32nd block 214 crore grains, and at 64th block 9.2 billion grains. The king could not take his words back. The king had to give his whole kingdom to the man, the man became the king and the king became his slave.
You can see that starting from one grain and reaching a billion grains, this is called the power of compounding. It is the world’s 8th wonder. People like bill gates and warren Buffett understands its power. These people put money to work. Whenever we think about investments the things that come into our minds are FD, RD, gold, property, mutual funds, and stocks. If we want balanced or moderate growth some options out of these are good. But if we want to make our money grow exponentially the options we should go for are stocks and mutual funds. If you were a financial analyst or a planner then I would have told you that the best option for you is investing in the stock market.
But the majority of us are not having time, risk expertise, and effort. We are busy with work we want to invest our money and taking profit of compounding we want to multiply our money. After solving the tree of time, risk, expertise, and effort come mutual funds. For example, if you are thinking of buying a Rs 1000 share in the stock market, but stock markets volatility can lead to losses. So here the thing that will come to your rescue will be mutual funds
Let’s understand how it works like you 10 people invested Rs 1000 to accompany which is called the asset management company. This asset management company has a fund manager who will invest your Rs 10000 and this fund manager is qualified and understands accounting, finance, business, and economics. They have a team of analyst researchers who keep an eye on the market and understand the market. Now this fund manager instead of investing in one place invests it in a planned manner in different places. It is their research they think that automobiles will grow so they will invest some amount in Mahindra, they think that pharma will grow so they invest some amount in Cipla, they think IT will grow so they invest some money in Infosys. Now see the tree of time, expertise, risk, and effort is there with them, they have time their whole team is dedicated for this work, they can take risks because the fund size is really big they can invest in a diversified manner, if there is loss at some places there is gain at some places so average out they perform well. They are also having expertise in this thing doing it the whole day and efforts are focused on how to invest at multiple places and diversify it and give you profit. Out of that profit, they take their commission that can be up to 1%.

Now let’s take an example that there is a fund X whose growth in 3 years is 16.4% and the total money invested in this fund is Rs 7000 crore, you will get to know how this money is allocated in different sectors and there is return percentage to different funds. Understand how this return works. For example, if you invested Rs 1000 to invest per month, that is called Systematic Investment Plan, now see how mutual funds work. Let’s calculate it in the SIP calculator, you put Rs 1000 for 10 years and 15 % of return which is higher compared to the investment in banks. Now if you invest 1000 for 10 years then your investment will be Rs 120000 and your value of an investment will be Rs 278000. It’s not like your salary or income will become stagnant you will grow and if you increase Rs 500 every year in this SIP then your investment will be Rs 390,000 in 10 years and the value will be Rs 7,40,000. The more money and time you will invest in more value you will get for your investment.

So as early as you start investing in mutual funds the more time your fund will get the more profit you will get through compounding. Just think of investing rather than spending. It’s a great habit. The benefits that you get for investing in mutual funds are, you can start with a minimum of Rs 500, you can deposit anytime and take out at other times, the recommendation is you invest for the long term, or have the flexibility of investing in SIP every month or invest in a lump sum. Another thing is having a different mutual fund investment for different goals. You can also have tax savings by investing in some mutual funds with some minimum lock-in period. Like banks are regulated by RBI insurance is regulated by IRD, mutual funds are governed by SEBI so it is secure. Though there can be a loss if you invest for long you will have a profit reason being there are experts to invest.

Just a fact the total amount invested in mutual funds in January 2009 was 4 lakh crore but in 2019 this amount surged to 23 lakh crore so you can see at what level is this industry going. Now it’s a tech-savvy world there are many apps from which you can invest in mutual funds. But we don’t want you to learn it virtually we invite you to visit our office at JNC Fintech where experts are there to guide you at every step. They are there to help you at every step, to choose the right fund investment for you. So as fast as you can you should visit the office of JNC FinTech and learn how to invest money and get it compounded exponentially by the eighth wonder that is compound interest with the expertise of JNC FinTech. The other services that you can avail of at JNC FinTech are blockchain banking, digital finance, and portfolio management. So don’t waste time and remember if you will save money, that money will save you.