ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Multiple Ways of Making Money with Investments

Updated on January 30, 2011

Before getting anywhere near to making money with investments, one should invest a lot of time in proper education and research to become financially literate (let not the strange financial jargon fool you). Though there are lots of financial consultants, promoters, managers, stock brokers ready to bump on your doors just at a dial of a phone or click of a mouse, it’s considered wise to consult someone within your social circle whom you believe to have prospered well with financial wisdom. Your main aim of starting investments is to make money and/or increase income and for that you need to simply convert your currently earned or saved income into portfolio and passive income. Passive income consists of income from rental properties, commercial properties, sale of residential spaces, etc. Portfolio income consists of income from mutual funds, bonds, stocks, etc. Now below are multiple ways of making money with investments:

Source
  1. Always remember to maintain some liquidity in your investments.
  2. With respect to stocks and mutual funds aim to stay invested for a long term, this minimizes your losses (if any) and assures profits.
  3. Capital appreciation in real estates was very remarkable from 2004 to 2007 and what people made at that time is now not possible to make in 10 years in real estate. So according to me take your time and invest very wisely in potential properties.
  4. If trying to buy flats as an investment option, think again. Will your income from rents cope up with your EMI’s?
  5. For any type of investment, always note if the RATE OF RETURNS outsmart RATE OF INFLATION.
  6. Considering inflation at 6% try to choose investments at more than 8 to 9% returns.
  7. Debentures from huge firms (like the recent one from L&T) are safe and promise 9 to 10%.
  8. If you consider equities as risk, remember this thumb rule "subtract your age from 100 for example, 100-25 = 75% should be percentage of your investments you can consider for equities”.
  9. One should also not ignore insurance covers for oneself and his family
  10. To put it in order, the aims can be prioritized like: (a) To be secure. (b) To be comfortable. (c) To be rich.
  11. One can also buy gold in his demat account (gold bought such is not in ornamental form). Some advantages of buying gold in forms of funds are: (a) they don’t include any making or wastage charges. (b)  They are truly bought and sold at market prices as such. (c) Transactions are very quick and there are no/less brokerage expenses. (d) No fear of theft like real gold. (e) Can buy gold for any amount of money because it is only maintained in account format. You never get to see your gold. (f) Liquidity is maintained as you can convert them back to money any time.
  12. It is better to convert your earnings in to gold in your demat account rather than in a savings account in bank. It prevents the erosion of your money due to inflation as the value of gold never gets eroded (it has been proven for centuries). That’s why one can note that whenever stock markets crashes, gold prices hike generally, because investors withdraw their money from stocks and rush to put it on gold thereby increasing demand of gold.
  13. Though best and safest investment varies depending upon individual risk appetite, as a thumb rule your age should be the % you should invest in debt and rest in equity or equity related instruments like mutual funds through the SIP route (safest one).
  14. Do not mix Insurance with investment. Take a Term policy for larger life cover at low premiums.
  15. Do not fall prey to your NRI relationship manager ULIPS.
  16. Start a provident fund account in the name of your wife and/or kids and invest maximum upper limit. The power of compounding is amazing with this investment. Just calculate on excel sheet and you will be amazed to see how much money you will make with this investment.
  17. Also regarding mutual fund investments, the fund manager should be good and see the performance or track record of the fund.
  18. Property investment for earning money is good but your funds become blocked and second if you stay on that property it’s a white elephant or if you have any problem with your builder or don’t get the property in time or don’t get the tenant in time, then the money gets stuck.
  19. When you invest, your investment should be like a pyramid. The base should be at least 20% insurance, take a plain one and not the money back policy. If you go through it very narrowly, you are paying more for the premiums. That’s not healthy for your investments.
  20. Keep aside at least 3 months in some fund where you can withdraw the next day if you are in need. There are some funds where they give guaranteed interest of 7% instead of keeping in a savings account where you get much more less.
  21. Take some health policy for you and your family. That’s very important as the hospital charges are very high.
  22. See how much you can save later. You can consult with some financial consultant for this. You can earn more money if you invest wisely.

So above were multiple ways of making money with investments. Today is the last day of personal finance contest at hubpages and I humbly request all the hubbers to take part in this hub and share their thoughts, experiences, knowledge, and wisdom regarding investments, making money, and increasing income. It would be greatly helpful especially to newcomers as it requires actually a very high level of mentoring to succeed in managing personal finances, especially making money with investments.

Comments

    0 of 8192 characters used
    Post Comment

    • soni2006 profile imageAUTHOR

      Rajinder Soni 

      7 years ago from New Delhi, India

      Hi Daniel, if you take my advice never mix insurance and pensions with investments for making money. Life, health, and other insurance is a secured thing and should not be played with. There are many more ways to make money with investments as I have mentioned above. If you start following my advice, I guarantee you will be successful in earning money with investments as I am. Best of luck friend. Thanks for your feedback.

    • danieliuhasz profile image

      danieliuhasz 

      7 years ago from Romania

      Good points you have there. I myself have thought of making my way in life with the help of some investments, but as many, I have the problem of mixing investment with insurance and pension; I guess that I am not so well organized but will have to reconsider this and find a way to save money in an account. Better funds administration..

      Cheers!

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)