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Guest Column by Sushant Bindal: One for the money
Auspicious festivals like Dhanteras, Diwali, and Akshaya Tritiya have been age-old promoters of investments
Auspicious festivals like Dhanteras, Diwali, and Akshaya Tritiya have been age-old promoters of investments. I vividly remember my parents buying gold and real estate during these festivals. It’s interesting how our ancestors incorporated ‘investment culture’ within a festival. Clearly, the idea was to secure future finances.
But, with changing times and reconstructed consumer behaviour, many millennials and Gen-Zs today do not fancy the traditional ways of investment. Gold is a slow-growing investment and real estate blocks a large amount of your capital for a long period of time and, therefore, is less preferred today. But from mutual funds to crypto, there are many new ways to invest.
If you are new to the world of investments and you want to explore the trending investment opportunities of today, consider these points.
Easy and rewarding
Exchange Trade Funds (ETFs). You may have not heard of these before, because mutual funds commercials hold sway. Also, ETFs are not as popular as mutual funds because there is no fund or portfolio manager involved. Rather, an ETF is a fund that is traded directly on the exchange to replicate the index. For instance, Bank Bees and HDFC Bank ETFs replicate the banking index, and are directly linked to the progress of the banking industry. ETFs offer great flexibility; you can trade them like stocks.
Read the fine print
A majority of us in India are sceptical of Bitcoin and cryptocurrency. The biggest drawback here is the lack of awareness regarding blockchain technology. Blockchain technology is a secure and genuine way to enter into any transaction online. It is like any irreversible transaction, but at the same time, it cannot be recreated through forgery. Bitcoin and cryptocurrency are by-products of this technology. These newly-launched investment options are extremely lucrative. Since this is a highly volatile market, it is advisable to be equipped with the whole process before becoming a part of it. So, either read about the tech involved or ignore it for now.
The biggest red flag
Ever heard of schemes that offer 5X returns in half a year? Sorry to break your bubble, but nothing like this exists. If it did, all of us would be richer than in our wildest dreams and no one would ever have to be anxious about investments. Schemes like these are scams that have victimised many young people of late. So, remember: There is absolutely no shortcut to good returns.
Pro Tip: Never overtrade. Stick to your threshold and do not be tempted to invest more than you can afford to lose.
Sushant Bindal, 24, is an entrepreneur, trainer and speaker who runs three ventures revolving around the world of finance. besides having given multiple Ted Talks about it. He is the founder of Money Monitors.
From HT Brunch, October 22, 2022
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