How to Earn Money from Money

Currently, most major financial institutions are offering 4 per cent or even a lower rate of returns on their saving account.... It is therefore important to look for other better choices and investments so that your money earns you money. FD (Bank Time Deposit)A FD (Bank Time Deposit) is a preferred option for investments due to its secure yield and associated security.

Currently, most major financial institutions are offering interest between 6.5 and 7 per cent. 5% for a term of 1 to 10 years. Reverse Convertible Fixed-Term DepositAn Reversible Fixed-Term Money Investment known by various designations, such as money multiple, 2-in-1 accounts, has a higher return than a saving portfolio (between 6.5 per cent and 7.5 per cent currently) while maintaining the cash flow of a saving portfolio.

Any amount in a sweep-in deposits that exceeds a certain amount in the escrow accounts is transformed into an FD automatic. Too read: Sweep-in deposits give higher interest rates than saving account: Minor saving programs such as Public Provident Fund (PPF), National Savings Certificates (NSC), Senior Savings Scheme, etc. are also attractive opportunities for investing in bonds.

On the basis of the return on sovereign debt, the State fixes the interest rates for small saving product at the beginning of each quarterly year. Whilst sometimes the return can be higher than with banking deposit, you should associate it with your objectives and invest at the same time, as most of them are long-term investments.

In order to achieve better fiscal efficiency, equity funds programs may be considered by issuers, as after three years, profits are eligible for Indexing performance and are subject to 20 per cent taxation. They do not reinvest in shares, but rather primarily put the investor's money into bond issues such as company loans, sovereigns, treasury notes, money orders, and other money markets products.

At present, the 1, 3, 3 and 5 year returns for the medium-term pension mutuals are around 7 per cent, 8, 5 per cent and 9 per cent respectively. According to the current Sebi categorization regulations, there are 16 classes of indebtedness programs. Investors should select the particular class of systems according to the length of the underlyings.

Stock fundsEquity investment trusts mainly invests in stocks of corporates. According to the applicable Sebi investment rules, an investment program must have at least 65 per cent of its net worth invested in stocks and equity-related securities. You can manage the investment either on an active or passive basis. Yields in an active trading investment depend largely on the capacity of a portfolio manager to produce yields.

Indices and Exchanges Trading Finds (ETFs) are administered on a passive basis and reflect the index used. Stock programs are categorized according to either capitalization or the sector in which they are invested. Currently, the current returns for the large and mid-cap categories are around 9 per cent, 12 per cent and 15 per cent respectively for the 1, 3 and 5 year maturities.

Investment in GoldThe yields on bullion can be quite variable for some periods of your life and then stay unchanged for several years. At present, the 1, 3 and 5 year yields are around 10 per cent, 5 per cent and 2.7 per cent respectively. Possession of jewelry has its own issues such as security and high costs.

There are also the "manufacturing costs", which usually lie between 6 and 14 per cent of the gold price (and can be up to 25 per cert for custom-made products). There is another possibility for those who want to buy golden coin. As an alternative to using a cheaper method of holding bullion, it is possible to buy and sell bullion on a NSE or BSE market using bullion as the base.

Investment in Sovereign Bonds is one way to invest in bullion. Equities Investments in equities may not be everyone's thing as it is a highly variable investment category and there is no guaranteed return. On the horizon, the only thing on the horizon is that over long horizons equities have delivered higher yields than inflation-adjusted equities relative to all other investment categories.

In order to mitigate your exposure to a certain degree, you can spread by sector and capitalisation. Currently the 1, 3 and 5 year yields are around 13 per cent, 8 per cent and 12 per cent respectively. 5% each. In order to buy shares directly, you need to open a demand bankroll.