People have become more familiar with stock market investments in the last few years. “How to grow my money through Stock Market Investments?”, if this question bothers you, stay along and explore the possibilities that lie ahead.
Although 2021 witnessed a devastating pandemic, it had an insignificant impact on the financial markets. The large-cap indices increased nearly 20%, whereas the small and mid-cap stocks hiked even more during the year.
In 2020, the mutual fund investors saw their funds lagging behind the targeted indices. However, their investments whipped out impressive returns in 2021. Thus an array of equity-driven fund categories outshone their benchmarks during the last year. If you wonder how to grow my money, it is high time to invest in the share market to attain financial goals!
Ways to Grow my money in 2022: Top 3 Financial Market Instruments
The pandemic-induced economy piloted the need for financial stability amongst the masses. As a result, a vast number of investors became keen to explore the stock market. It is vital to channelize the savings into profit-generating investments rather than keeping them into bank accounts.
From retail to institutional investors, a question that pops up in everyone's mind is how to grow my money. Consider the following hotcake investments for profitable returns if you are one amongst them.
1.Direct Equity: Firstly, you need to open a DEMAT account for investing in direct equity. It is one of the most effective options for long-term investments. Despite the high degree of risk, direct equity offers more substantial returns than the other financial instruments in the market.
If how to grow my money through direct equity is your concern, assess the stocks in the market. Pick the ones with tailwinds potential. At present, the returns for 1, 3, and 5 years market range around 8%, 13%, and 12.5%, correspondingly.
2. Mutual Funds: Mutual funds are a viable option if the long-term investment is in your area of interest. They provide lucrative returns on the investment for a longer period. It invests money into various financial instruments such as stocks, equity, debt, money market funds, and many more. The mutual funds offer returns as per the specific fund's market performance. Below-mentioned are the two pivotal investment options under mutual funds.
• Debt Mutual Funds: These are good for the investors willing to gain stable ROI. The investment options include securities with fixed interest such as government securities, commercial paper, corporate bonds, Treasury bills, etc. The debt mutual funds aid in generating interest income.
• Equity Mutual Funds: These offer higher ROI through investment in companies' share of versatile market capitalization. The equity mutual funds reap good profits irrespective of the risk. As per the equity mutual funds scheme, 65% of assets and 35% of the assets are invested in equity and debt-based securities, respectively.
3.IPO (Initial Public Offering): These are the stocks or public offerings in which a company's shares are sold to investors. It is quite a straightforward process for those who are curious to know how to grow my money through IPO. When investors put money in IPO, they become the company's shareholders. Thus the investor enjoys lucrative profits by selling the shares on the stock exchange. Alternatively, the company also offers dividends on the shares that one holds.
If you are figuring out how to grow my money, explore the above investment options. You can achieve the financial steadiness by pumping your savings into productive stocks. Ensure to assess the stock market thoroughly before investing your money for generating wealth reliably.