Diversify your investment to maximize return of investment.

Life – a mixture of happiness, enjoy full moments and of course sadness, miseries and sorrows as well. In other words life is all about uncertainties and fluctuations which cannot be changed but we can be ready for some uncertainties in the life by doing some futuristic planning. The biggest reason by anxiety and apprehensions is financial reason, almost every person has limited income source and sometimes all of sudden people might have to face a situation which is never predicted. So, it is mandatory for all to manage our income and diversify the investment to get the maximum return on investment.

Plan your investment according to your income and expenses. After income see your immediate and future liabilities. Some people prefer to keep money in bank account which generates four percent interest only whereas when it is compared to inflation rate rise during that period, it would be much higher than the general interest generated by saving account. So, prefer to invest in fixed deposit if money is supposed to be in bank more than thirty days. Surely return will be more than four percent. One can choose multiple fixed deposits as it is possible to transfer money to FD account through internet banking.

For investment up to three years choose recurring deposit scheme where you have to deposit a fixed amount in recurring account every month and interest earned will be 8-9 percent. For very short term investments prefer stock exchange but see market position before investing. Stock market can generate good return but some patience is required, if you see fluctuations in the market, do not get panic and wait for the time till market revives.

SIP or Systemic Investment Plan is another good tool to get good return on your investment. In SIP, investor has to invest a fixed amount and his investment will be further invested in stock exchange by the asset management company. There are three categories of plans – High Risk, Moderate Risk and Low Risk. Choose your plan according to market trend and do not forget to see fund history for last six months at least.

If you want to invest money for tax savings purpose, prefer LIC or Public Provident Fund where your return will be fixed 8.7 percent but investment period will be fifteen years. PPF is good option to invest money for long period as return if fixed and investor gets eligible for loans very easily.

Investment in gold and real estate can get good returns but market position is required to be examined for investment. If gold is purchased for investment only, prefer to buy coins from reputed seller like bank. Real estate requires huge money to be invested but after some time chances of return will be good provided good infrastructure development around the locality. So before investing, examine developer’s credentials.

These are some ways how we can maintain our investments in the market and there should be a balance between high return – high risk and low return low risk investments. But something which I would like to mention here is that most of time our hard earned money is spent on medical bills and medicines. So, take care of your health, develop healthy habits to be physically and mentally healthy.

I have seen that in most of the cases of heart diseases, neurotic disorders and other ailments, stress and other unhealthy conditions are biggest reasons. No need to compete with others, happiness is there where family lives together and eats together. So, do not let your hard earned money to get spend on hospital bill – Earn well, Save well and Live well.