How to become rich: Becoming rich is a long term process and requires discipline. Some people become rich at a very young age, but most people become rich by earning more money, saving money, and investing in different assets. The great thing about big investors like Elon Musk, Bill Gates and Warren Buffett is that they started small and became rich by maintaining discipline over a long period of time. Today they are the owners of big companies. But ordinary people do not have companies. So they have to become rich by adopting investment strategy.
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Currently, experts recommend investing in 7 different assets:
1) Stock Market: Investing in the stock market is risky, but if you invest in good stocks and hold them for a long time, you can get returns much higher than the rate of inflation. The Nifty 500 index has given 14 per cent annual compound returns in the last 10 years. Invest in equity if you want to save money for retirement, higher education of children, marriage etc.
2) Bonds: Equity has volatility which you can compensate by investing in bonds. The bond is more stable and protects against cracks. You can also invest in mutual funds by investing in bonds for short term or medium term.
3) Gold: Gold is the favorite metal of Indians and Indians buy the most gold in the world. Gold has always given higher returns than inflation and also provides a sense of security. So keep buying gold when there is economic uncertainty.
4) You can also earn good money by investing in commodities. However, it is always volatile. Investing in raw materials used in the production of finished goods is a good option. This includes energy, agriculture, metal products. You can also invest in commodities like sugar and coffee.
5) Real Estate: Indians are known to invest in real estate as well. There is very little chance of value depreciating in realty. In return, you can get the benefit of price appreciation and regular rentals. However, investing in realty requires huge capital in hand. You can also invest in Real Estate Investment Trusts (REITs).
6) Currencies: Investment in currencies is not considered as a separate category. You can invest in home equity denominated in Rs. For diversification, one can invest in other currencies such as the US dollar through international equities.
7) Other Options: There are many other avenues to invest in including private equity, hedge funds, venture capital funds, bitcoin, paintings, antiques. But there is no exact data available regarding the benefits of investing in all these instruments. Rich people usually invest in all these properties. Invest in these 7 places if you want to become rich: Huge profits are possible in the long run.