MoneyExcel - Personal Finance Website Blog

Menu
  • Home
  • Business Ideas
  • Stock Market
  • Mutual Funds
  • Incometax
  • Investment
  • Credit Card
Home
Investment
7 ways people use to invest their money

7 ways people use to invest their money

Raviraj Parekh November 30, 2014 No Comments

invest money

You invest money to secure your financial future, but do you think before investing money? Investing money in right asset class at right time is very important for achievement of you goal. Your ability to invest money in right asset class depends upon your financial knowledge, analysis, your time, motivation and what type of advice you receive.

 Today I will share with you 7 ways people use to invest their money. Let’s checkout which way do you use and why?

7 ways people use to invest money

  1. Invest money on your own

First way is to invest money on your own. You carry out study, analysis and take decision to invest in right asset class. Here you are acting as independent entity and taking decision on your own based on your wisdom. This is best way to invest money. As you are taking decision on your own and it is informed decision in your favour.

  1. Invest on advice of friends and relatives

Second way to invest money is based on advice of friends and relatives. Today almost 60% investors fall under this category. They invest their money just by listening to advice. They don’t bother to carry out due diligence exercise before doing investment. This is most risky way to do investment.

  1. Invest money on Tips

These types of investors are usually found in share market. They invest their money based on so-called share market Tips. Sometimes this tips works but it is all depends on reliability of source from where you are getting this tips. It is not advisable to invest money on these tips.

  1. Invest money on broker’s advice

Another most common way people invest their money is based on advice of broker. This is most risky way of making investment because majority of time it is seen that broker is either inexperience or giving biased advice for his own interest. One should not make any investment based on broker’s advice.

  1. Invest on commission agent / Insurance Agent advice

Certain people invest money on advice of commission agent or insurance agent. They probably don’t know that commission agent or Insurance agent gets big commission for selling these products. This is another ineffective and risky way for making investment.

  1. Your Money Manager invest money on your behalf

You can appoint money manager to invest money on their behalf. Manager invests money according to specific plan, monitor portfolio on regular basis and make changes as per requirement. You will be observer to entire process and result.

  1. Invest by taking help from financial expert/financial planner

Another way people invest money is by taking help from financial expert or financial planner. These types of investors make proper financial plan and invest money as per financial goals. This is most suitable and advisable way for making investment.

So which way you should take for making investment. Take following quiz to get answer.

1I have financial goals for my investmentsY or N
2I have financial Plan for investmentsY or N
3I have financial knowledge and capability to manage my investmentY or N
4I have the time to manage my investmentsY or N
5I have motivation to manage my investmentsY or N
  • If your answer is – Yes for all five questions, Bingo you are self sufficient & you can invest your money on your own.
  • If your answer is – No for question 1 and 2 than you need advice from financial expert or planner for investment.
  • If your answer is – No for all questions than you need money manager or financial planner for making investment.
  • Way 3 and 4, Investment based on broker advice and on tips is debatable as it is not ideal choice. If you have ample amount of money and you are ready for loss you can select those options.
  • Way 5, investing based on advice of insurance agent or commission agent is not advisable as commission is involved, agent will advice investment option based on his interest.
  • Way 2, investing based on advice of relatives and friends is risky and not advisable.

So, which way you prefer and why? Do share with us.

You can follow us on Facbook.

Share
Tweet
Pinterest
Email
Prev Article
Next Article
Tags:how invest invest money money investment to invest money ways invest money ways to invest

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging for 7 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

Leave a Reply

Cancel reply

Search

Top Posts

  • 10 Best Instant Personal Loan Apps for Quick Cash Requirement
  • How to update KYC EPF UAN Online?
  • Income Tax Calculator FY 2019-20 (AY 2020-21) - Excel Download
  • 20 Best Mutual Funds for Investment in 2020-21
  • How to check Property Records and Land Records online in India?
  • 30 Food Business Ideas with low investment
  • 200 Small Business Ideas with Low Investment
  • Top 10 MLM & Network Marketing Companies in India
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • Rakesh Jhunjhunwala Portfolio Holdings - December 2019

Subscribe to Blog via Email

Join 5,362 other subscribers

Related Posts

  • REC Tax Free Bonds 2015 – Details …
    October 27, 2015 3
  • Best time to invest your money
    October 2, 2016 6
  • Missing Investment Opportunities – Warren Buffet
    September 27, 2013 0
  • IIFL NCD Review – Invest or not
    September 4, 2012 3
  • Diwali 2019 – Stock Picks by HDFC …
    October 23, 2019 0

MoneyExcel – Personal Finance Website Blog

Personal Finance Blog
Copyright © 2019 MoneyExcel - Personal Finance Website Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |
›
‹