Most Preferred Money Making Plan

Jan. 28, 2008 - PRLog -- Earlier, it was the savings, particularly long term fixed deposits in banks, which yielded the maximum returns. However, these days, people do not opt for long term investments since the gestation period is old. Besides, these days, there are better schemes, which offer better returns in a short duration. Though the risk of investment in such schemes is greater, the returns outrun the risk. People now prefer investing huge sums for a shorter duration.

Apart from the savings bank deposits, the investment plans encompass three sectors. They are the capital markets, the mutual funds and the insurance plans. The capital markets are today easily the most preferred investment destination. To enter the capital markets, an individual has to maintain a demat account with the bank or an agency that has exposure to day-to-day trading in the stock exchange. An individual can purchase the shares during the initial public offer or seek high paying shares in the open market utilizing the services of the asset and wealth management companies. If a particular person has registered with a wealth management company, the person will receive tips everyday from the agency to make appropriate investments at an appropriate time. For instance, if the agency feels that particular scrip may run for a higher price in the stock market, they will be bought in bulk the previous day. The stock is sold next day in the open market when the prices rise in the stock market. If the fluctuation in the price is not good as anticipated, then the customer is suggested to hold on to the share for some more time until it feels that they have to be disposed off.

The return on investment in the capital markets is very high considering the pay offs the people receive. However, at the same time, it is extremely risky to invest heavily in the stock markets. For, whenever, the markets crash, the prices of the shares will also come down drastically and wipe out the base of an individual.


Therefore, to secure the funds, there is another investment plan called mutual funds. Under this plan, people can invest on a periodical basis in a particular mutual fund plan. The fund manager will collect the money from the subscribers and then invest them in the share market on behalf of the investors. Under this scheme, the risks are minimum since the returns are guaranteed. Any person making sufficient investments in the mutual funds will be assured of a healthy return. However, the mutual fund has one disadvantage. The rate of return on investment is not as high as that of the investment in the stock markets. However, the risks are lower than those of the stock market.

The third investment option is the insurance sector. There are hundreds of insurance plans that can be considered for sound investments. However, the investments in the insurance sector are meant for longer periods with returns expected towards the expiry of the scheme. Under insurance, there is life insurance, general insurance, health and medical insurance and property insurance.

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