Where To Invest Money - Best Way To Invest Money

This is one of the biggest questions which come to mind when planning your investments. The Best way to invest money is one which gives high return with minimum risks. Your money management plan should ensure a high yield from your hard earned money at the time of your expectation. There is NO best way to invest money which suits every individual, A perfect option for one person may not be a perfect option for other person.

Where to invest money depends on how much risk you are ready to take, how much money you are putting in and when you are expecting the returns from that. Following are the some of the best options sorted based on the order of Investment Risks. Opt for a plan which best suits your risk taking capacity, expected returns and time period you are planning to invest.

Investment on Housing:

It should be the aim of every investor to secure a 'roof over his head'. Even salaried employees who have been provided with company housing should have a flat or property of their own as several executives have regretted not having heeded this advice.

Investment on Life Insurance Cover:

Although, as an instrument of savings Life Insurance Cover may not be a High return Investment, particularly in inflationary times, nevertheless, a life insurance policy is a must for the protection of one's family and dear ones in the case of calamity. You can also get Tax exemption on the money you pay as premium on life insurance covers.

Medical Insurance Cover:

Now a day, it becomes necessary to have a Medical Insurance Cover as treatment of unforeseen illness may now and then go beyond the available financial resources of the investor. Medical insurance makes sure that the required medical treatment would be accessible to you and your dependents in the event of any need. The medical insurance cover is obtainable at a nominal rate and entitles the investors to tax benefits also.

Bank Accounts and Deposits:

From the point of view of liquidity this is a must. It is better to be on the safe side and have a comfortable bank balance rather than be forced to make a distress safe of one's assets. Even though it is not a High return Investment, High liquidity and very low risk makes Bank accounts and deposits the best way to invest your money.

Tax Planning Vehicles:

After having pooped the above, the investor should plan at getting the maximum tax benefit permissible under the law to maximize his returns. A variety of money management schemes offer not only tax benefits but also a fair return. As a consequence, the return on such instruments, after bearing in mind the tax benefits is very attractive to the high tax bracket investors.

Investing money on Equity Shares:

Being a high risk bearing investment vehicle, the return in the form of capital appreciation is the maximum. Additionally, investments on good scrips provide on an average an annual return of 30%. Also, the holding period for determining long term capital gains is one year as compared to three years for other assets. Invest in good companies which frequently announce bonus and stock splits. Returns from stock market depends on your risk management skills and sound investment basics.

As I said at the beginning, there is NO best way to invest money which suits everyone. The amount of returns on your money is directly associated to the risk you are willing to take. You should optimize your risks and find out where to invest money wisely.