Investing is a serious effort that needs time, knowledge, patience, and the right attitude. However, there are certain perquisites that you need to follow. Here are some handy tips on how to earn six figures in 2023.
- Keep investing persistently. Stick to the habit.
- Be confident about your investment plan.
- Your investment intent should be in sync with your action plan.
- The process is filled with questions, so be ready to seek advice from the experts.
- One way to mitigate the risk is to invest in a diversified portfolio.
1. Equity Mutual Fund SIP
As the stock market continues to rise to newer heights, investors should start investing in equity mutual fund SIP to beat inflation.
Depending upon the investment portfolio, the investors can get a return as high as 24.6% for three year period.
The trend is continuously rising, and investors are reaping benefits by pursuing it.
Related – 6 Best Money Habits to Start Building Today
2. Investment in Multi-Bagger Stocks
Getting 1000% returns in just ten years is that possible? Well, here we are, not talking about some investing in some penny stocks or some Ponzi scheme.
It is the kind of return that you can get if you invest in the stocks of mega corporates.
You heard right; if you had invested in any of these multi-bagger stocks, your investment would have been more than 10 times today. These stocks can guarantee you high yields.
3. Blue-Chip Mutual Funds
If you cannot directly invest in the stocks of these companies, you can take the route of mutual funds.
These funds will deliver you with robust performance that will make your investment into six figures within some time.
However, you need a skilled fund manager at the helm; who can assist you in this process.
It is important to examine the key fundamentals of the fund, the performance of the portfolio for the last five years; it will help you make an informed decision.
Related – 7 Personal Finance Habits that will Make you Rich
4. Certificate of Deposits
A certificate of Deposit yields high returns than a standard saving account.
The investment is best for investors looking to lock their money for a long period or for financially stable investors.
The reason why they are popular is that they are similar to saving accounts, are insured by FDIC, and carry no risk. However, the difference lies in the time frame.
The time frame can vary from one month to several years.
It is a safe bet for low-risk investors, but it attracts a penalty if you pull down the money early before the lock-in period.
5. World Gold Fund
Investors seeking to earn high returns can invest their money in yellow metal by putting their funds in World Gold Fund.
The scheme invests money in registered Blackrock Global Funds, which invests money in gold mining companies.
The analysts believe it is the right time to enter the gold market. However, it is the best bet for investors who can bear the volatility and have a high-risk appetite.
When the gold prices scale up, the fund will outperform, and it is seen that gold prices moved up from $1477 on 18 March 2020 to $2120 in August 2020.
6. Investing in Bitcoin and Ether
The digital currency price has again gone up, delivering 70% returns to the recent lows.
Ethereum has increased by 80% from $3300 to $1850. It suggests that investing in cryptocurrency would be the safest bet.
You can invest in either of these crypto behemoths.
Though Bitcoin is holding the largest market share and is still a dominant market player, it is struggling with supply.
No more than 21 million bitcoins are mined.
Ethereum does not have a limited supply cap. But if there is a shortage, the pricing will increase.
They offer opportunities to grow your money over time.
7. Investing in IPOs
The spurt in investment activity is expected to hit the market.
You can park the money in these IPOS to get a good yield.
Related – 6 Books You Need to Read to Retire Young
8. Investment in Exchange-Traded Funds
A suitable alternative to mutual funds is exchange-traded funds.
For those unaware of exchange-traded funds, it is a kind of investment fund that trades on the stock exchange.
Intra-day trading can be done as the price keeps varying. They are low in cost to mutual funds.
But before venturing in, you need to decide whether you wish to invest in a specific sectoral index or a whole index.
Conclusion
If you want to grow your money and be rich, you must have the patience to create wealth over the period.
And be a regular investor, will go a long way in building a retirement corpus.
