Whenever wherever the word investment comes,
financial organizations or gurus of investment often suggest investment into 4
different pillars.
These particular modes of investments have been
there with us since ages. But like every other business aspect, and every other
scenario this is being looked upon from a new angle in every decade. But here
this is bit of surprise component because this is the year 2020.Probably this
year will be written in the history book as the year of Pandemic or lockdown or
to beginning of New Era viruses. But whatever it will be written, the fact is
all the studies each and every field is been checked upon lights of or the new
findings of 2020. Because since World wars and plague attacks, the world has
never head came to a standstill like this year. Globally to have been afraid of
going out of homes, disrupting the daily life for not only days but for months.
And for this particular reason only all the pillars of investment has to be
looked upon from this new angle of post coronavirus era, or you can say in
future we might see study is being deivated upon just because of COVID 19.
Fundamentally these Investments are mostly
advised in
Gold
Let's discuss on gold. The yellow metal as it is often
called is not only the most lovable for the feminine gender, but also regarded
as one of the most useful investment material throughout the ages. From the valleys
of Nile river to the shores of Yang Si kiang, gold has always been recorded as
the metal for kings or nobles. If you take a time period of 10 years, 20 years
and 30 years, you will find that value of the gold has almost increased by
almost adding another 0, at the end of the financial year time frame.
While analysing you should also take the years of
recession into the picture and how fast your investment will overcome the same.
And particularly in this case, gold doesn't come out as positive as in other
cases.
Also as when investing is mentioned, you should
also have to have a hand in minimizing the losses. So, the moment gold price
start going down, start eating out your profit, then there is no actual
threshold where it can go down or stop.
Though one beautiful thing about gold is you don't
have to check the prices everyday or keep a tab on it. You can do whatever you
want as your daily routine it will give you the definite return, probably one
of the best returns of all the four types of investment.
Mutual Funds
Now mutual fund concept is not as old as the
other three options. One can always say it is the latest strategy to invest
your money.
But the latest always might not give you the best
of the strategies. As often each and every mutual fund advertisement says, read
the offer document carefully, it is because there are quite a lot of detail
understanding what needs to be done, before thinking of the mutual fund
investment. But most surprisingly if you
see at any market any country, you will find that most of the investments are
done in the mutual fund only.
People are often told that Mutual Fund all the
benefits of share market but none of the negatives of it. And here lies the twist.
Just think how blatant this lie can be. Because most of the mutual funds are
invested in share market only. So is it that when the share market is down,
just because you have invested in mutual funds the value of mutual funds will also go down. People say,I
know you will be accumulated much more shares... What is the point?
Also whenever your investing in mutual funds you
find that what is the transaction charge of 2% to 12% every year to maintain
your Mutual Fund. It doesn't matter if you are any swip in or out. Moreover
most of the cases if you doing more than five sweets in here then you will be
pain heavily for those swips .So ideally, it means that you are actually paying
for the salary of the people office for the furniture other things what an
organisation supposed to spend, whether you like it or not. It doesn't matter
if your Mutual Fund give a 2% return on investment or 15% return on investment
you have to pay for the services each and every year. Most surprisingly, even
if your Mutual Fund portfolio gives a negative return, still you have to pay
for it.
And the worst thing is you don't have a control on
the Mutual Funds if it is going for a loss. And just imagine, the case of
mutual funds which have a lock in period to invest. So knowingly when your
portfolio is making a loss, you have still pump money on top of it, so that
once in a long run if your portfolio makes profit, then you can get percentage
of it.
Our Gyan Guru says, the best financial people
are the financial scamers, and you will never find them they have invested in
mutual fund.
Real estate
Real estate as a type of investment is also a
good glimmer. You often see the price of real estate increase like anything and
always in some part of your mind it comes as a investment option. Let's go back
to our time frame of 10 years, 20 years and 30 years. You'll often find that in
these time frame the value of real estate has increased phenomenal in
exponential graphs. So why not choose this as an option of investment?
Why choosing a real estate property to invest, as
an ideal investor we should look into the properties which are low hanging and
will bear great fruit in the near future. So ideally you should look into the
suburbs of the city or a town to invest in. If you invest properly and
periodically over the time your investment should give you a great return
But the worst thing in this kind of investment in
the time of recession. Any kind of recession hits the first sector is the
real estate. And when it gets hit it gets hit badly. It starts you bleeding
out, and most often not only eat out your profit ,but will incur you heavily
loss.
Also the matter of worry is, you don't have a yard
mark, to cut down your losses and stop taking any loss on top of that. So
systematically, an investment where you don't have a control. It Might go up,
it might go down ... And all these depends on phenomenas where you can't even
think of control.
Share market and different bonds
You will be surprised to know that every private
organisation and even government organisations are heavily invested in share
market. But when it comes to coming people, share market is open dreaded. Be it
gold, Mutual Fund, real estate all these are direct investment in share market.
And if the share market does well, then they all do well. So when you are
bullish about a market every sector might or might not be bullish, and that is
the same in case of bearish market also. That's why the graphs of share market
is never flat line in any country in any market for even 1 minute. Just for an
example, Microsoft share in 2000 $48 dollar, in 2010 $45, in 2020 it is around
$210. Here just to remind you that, 2020 is a disasterous year for many of the
sectors.
It is seen that every 20 to 25 year, there comes a
recession and financial history is being Re-written every time. So, If you buy
a share for $100 today, down the line 10 year down the line it becomes $500,
and again down the line next 10 years it becomes $100 again .. Then how
can you make a profit out of share market? Yes, that is the beauty share
market. Not only you can make money when your price of share is increasing,
toll free you can make money when the price of a share is decreasing. So
external conditions might change the price of the investment, it cannot change
your motive of making money out of the marketplace.
Let us take a complete different case. Say that,
you have bought a share for $100 thinking the price will go up and we will make
a profit out of it. Due to some whatever scenario, the price of the share starts
going down. Can happen, have happened and it will continue to be happening. But
in share market you have a safe guard against it. You can always buy this year
with the condition that is your share price hits $95 then the share will be
automatically sold and your loss will be Limited. So basically you have a
control over the loss also.
The only thing what you need to do , when you are
investing in share market, is you have to keep a tab, almost every other day to
safeguard your investment. But all the sensitive good things always requires
attention, isn't it?
