How can I earn money from my savings in an effective way?

Earning money will not make you rich. Yes, you heard it right. Only managing money smartly with that earnings will differentiate you from rest of the crowd.

We are already paying hefty direct and indirect taxes for the government and spending the remaining money for personal interests. Many people stick that left over pennies in the bank, may be in a fixed deposit mode. Come out of that web, amount just beats inflation at the end of the day. We also need to pay capital gain or capital appreciation tax. Then what’s the best thing to do ??

Many analysts will say that investing in the world of stock market will be profitable. Money will double in FD over a period of 10 years. Don’t aim 10 or 20 times return in the stock market by holding shares. Everyone is not Warren Buffet. Even the index did not give that much return. Current Nifty Index is at 15,000, before 10 years, it was roughly around 5,500. Yes, we got 3 times return in 10 years but what about the risk factor? Is it a worthy bet in terms of risk adjusted return? Index made our money double from the corona crash to this point of time. It’s the matter of taking right entry and right exit along with correct division of capital.

Ways to earn money from savings through an investment vehicle:

The list goes on. There are ‘n’ number of ways through which one can make money according to the risk appetite.

In my personal opinion, don’t boggle your heads by thinking where to invest for your future. Invest 20% to 30% of your money in mutual funds and debt instruments if you want that money to be safe by beating the inflation. With the rest of money, enter into stock market (secondary market). One can easily make more money and better than mutual fund returns if the right knowledge and analysis is with you. Getting 5% return in a month through short term is not a big deal !!

Learn the basics, observe the market for couple of months with back-testing, entering into short term investments. I don’t believe in long term investment and intraday trading. Both of that two requires a skill. With some knowledge and analysis, one can start in short term investments. Don’t jump in to open the demat account to invest right know. Learn first, earn next.