There are plenty of avenues where one can invest while having a stable income. These avenues include mutual funds, equity in companies, and dividends. Of course, based on the investments made, the returns might vary substantially.
It’s a common notion that everyone wants to make money one way or another. No matter what, the work that we do is all for earning money. Typically, it controls everything that we do, and having more of it somewhat helps us achieve the goals set out in life. But then many wonder how they can propel their earnings while having a stable incom
Well, many fall into Ponzi scheme traps of doubling your money within 2-3 years if you invest X amount every month and so. Keep in mind that nobody is going to double your money. Instead, you would be falling for their trap of providing no returns whatsoever. However, if you’re looking to multiply your returns and have the patience to do so, then the following are some of how it’s possible.
Multiply your income through these investments
1. Mutual funds
Mutual funds are quite special because they tend to compound your investment through the years. For example, if you invest 50,000 rupees per month in a basket of mutual funds while giving an interest rate of 12%-13% annually, then after ten years, you would have 1.16 crore rupees. Now you can take that 1.16 crore rupee and enjoy life, or you could reinvest half of the amount (approximately 58 lakh rupees) back into the mutual funds as a lump sum and wait another ten years. The remaining amount could be kept in the bank where it earns interest, and monthly, you could have a stable earning of 48 thousand rupees along with your base salary. If you continue this trend for at least 20-30 years, you could have one lakh rupees as your monthly salary with money is still growing in mutual funds.
2. Equity
Holding equity in a company is quite feasible, provided your investments are right. Investing in a medium cap company with potential growth could fetch you considerable returns based on your investments. These could be around the 14%-16% mark on returns. Compared to mutual funds, these returns take at least 2-3 years based on the company’s performance. But then it’s a good way to make huge sums with high-risk probability.
3. Dividend (optional)
If you’re an HNI and have enough income to be disposed of, then you could invest in dividend stocks that offer dividend per share to their investors. Often, it’s the best way to make double the money as you can invest considerably in having a larger share count and fetch higher returns through dividends. If the dividends are higher, then the share price would also increase, and you get benefited both ways through your investments. These companies include GAIL, ITC, RELIANCE, OIL INDIA, BAJAJ AUTO, and others.
Conclusion
Multiplying your investments overnight is never feasible. Patience and determination of investing steadily in the stock market is one way of having a steady income throughout the year. Moreover, the more you invest, the greater are the chances of having a comfortable life without worrying about money ever again.