Most preferred money making plan

Released on: January 27, 2008, 2:01 am

Press Release Author: barbara camie

Industry: Financial

Press Release Summary: As the world economy continues to grow, investments have
turned out become the most money making plan. Earlier, it was the savings,
particularly long term fixed deposits in banks, which yielded the maximum returns.


Press Release Body: 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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