This document discusses various investment options and provides advice on choosing investments. It outlines properties, fixed deposits, stocks, mutual funds, insurance, gold/silver as potential investments. For each option, it describes the advantages and disadvantages in terms of returns, risk, taxes, and ease of use. The document emphasizes that the best investment depends on one's life goals and risk tolerance rather than simply choosing the highest returns. It advises consulting an unbiased advisor to understand one's goals and choose suitable investments to achieve a rich life.

1. Where to Invest?
1

2. I don’t know where to
invest some extra money I
have. What do you
suggest? Which is the best
investment?
Oh, there are many
options. You choose
what is best for you..
2

3. Property
Gold / Silver
Bank or Post office
deposits
Share market
Mutual Funds
Insurance plans
3

4.  Buy house / apartment or Land
 Earn rent income
 Or can be used to live and enjoy the comforts
Property
4

5. The good and bad about property
Advantages
 Asset Value will go up
 Can earn regular income
 Can live in better comfort
Disadvantages
 Small amount investments not
possible. Will have to take loans
 Not easy to sell
 Maintenance is expensive
 Pay tax on rent and sale gains
5

6.  Fixed deposit in bank, Post office or companies
 Earn fixed regular interest incomes
 Can be assured of a fixed value at maturity
 Interest income is taxable
 Can be converted to cash fairly easily
Fixed Deposit
6

7. The Good and bad about fixed
deposits
Advantages
 Earn regular income
 Low risk hence stability in
wealth
 Easy to liquidate and convert
to cash
Disadvantages
 Interest rate can fluctuate (in
1990s > 12%, in early 2000s <8%,
now about 9%)
 Interest is Taxable
 Not completely risk free
7

8.  A company when it needs money for expansion or other
business needs, raises money from people willing to invest
 Those who invest become joint owners of the business
 If business does very well then profits to all the
shareholders (owners) can be high
 At the same time, losses in the business will also be borne
by the joint owners (shareholders)
 When companies issue share for the first time it is called IPO
(initial public offering)
 Shareholders can choose to buy and sell their shares within
themselves in the share (secondary) market through demat
and trading account
Share market
8

9. The Good and bad about share
market investing
Advantages
 Very easy to Buy and Sell
 Can make high returns
 Good companies can grow a lot in
value over a long period of time
 Can earn regular dividends
 Mostly earnings are tax free
Disadvantages
 Risk of even losing invested
amount in short term
 Dividends are not regular or
guaranteed
 Need demat and trading a/c to
operate
9

10.  Invest indirectly in stock and bond market
 Invest in a fund, fund manager will choose which stock
to buy or sell and when
 Expertise and research enabled investing
 Small amounts can be invested
 Regular investments possible
 Regular and easy withdrawal also possible
 Tax efficiency
Mutual Funds
10

11. The Good and bad about Mutual
Funds
Advantages
 Very easy to invest and redeem.
Online free portals available
 Experts research before
investing
 Small amounts can be invested
Disadvantages
 Fund managers cost money –
charge fees
 No guarantee of dividends or
returns
 No control over which stock is
bought or when
11

12.  Actually insurance is only to protect
against risk
 But some policies like endowment,
ULIP, money back policies also
provide investment options
 Forced saving is a good feature
 Long term returns are less than most
other options
 Tax benefits both at the time of
investing and maturity 12

13. The Good and bad about Insurance
Advantages
 Secures your life
 Some policies also give
returns
 Tax benefits
Disadvantages
 High premium on high Sum
Assured
 Returns may be lesser than even
inflation (endowment)
 ULIP returns linked to share
markets – hence no guarantee
 High costs
13

14.  Gold and Silver are types of
commodities
 Protection against inflation
 Invest in physical form, through mutual
funds or through exchanges like MCX,
etc.
 Price volatility – no guaranteed returns
Gold / Silver
14

15. The Good and bad about
commodities
Advantages
 Inflation protection
 Low entry capital
 Easy to invest
Disadvantages
 Earnings not assured
 Safekeeping costs money
 Taxable returns
15

16. But with so many
options it is so
confusing. What is
the best ? Well, the best investment
gives High returns for no
risk, comes free and is very
easy to buy and sell and is
not taxable.
Unfortunately, there is not
such option at all….
16

17. Then what to do?
My friends are all
suggesting different
things?
Will you go to the medical
shop and ask for the best
medicine available? Or just
because your friend is taking
a medicine will you take the
same medicine? NO.
Why take such risks with your
hard earned money then?
17

18. Yes, that I agree.
What to do then?
Though there is no best
investment, you can find what
is most suitable for you. This
will depend on what you want
to use the money for and
what will give you peace –
your life goals and risk
tolerance..
18

19. Life goals, risk
tolerance… wow,
what are these?
They should be the
guiding light to your
investments. Understand
them well with the help
of a professional
unbiased adviser. Invest
in what will make YOU
live a rich life and not
someone else !
19

20. Happy Investing
Did this make sense to you? Did you learn a bit or two?
Can you take a minute to give your valuable feedback
on the link here please.
Thanks in anticipation.
20
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