Parking your excess funds in the stock market can help you meet your investment goals, considering the returns it can provide over a period. If you have Rs. 10,000 to invest, the stock market and others could be a potential avenue to invest and grow your wealth.
However, it is important to have a thorough knowledge and conduct your own analysis before investing.
Where to Invest Rs. 10,000?
To make things simple, here are a few investment avenues that you can consider for investing Rs. 10,000:
- Equity Instruments: Equity instruments are known to offer potentially high returns over a period of time. Equities can be an ideal investment option for wealth creation if you can make an informed selection of stocks. You’ll need to open Demat account online to start investing.
- E-Gold: Unlike traditional gold investments, e-gold is investing in gold electronically. It includes investing in gold mutual funds, sovereign gold bonds, gold ETFs, etc. They track the price of the gold and overcome the shortcomings of the traditional physical gold investment like making and labour charges, storage, and theft.
- Mutual Funds: If you do not want to invest in stocks directly but still seek to earn market-linked returns, you go ahead with mutual funds. Mutual funds allow investors to gain from the expertise of professional fund managers who make all the fund-related decisions.
- G-Secs: This includes government securities. G-secs are one of the safest modes of investment as they come with a government guarantee. You can consider G-sec investments if you want to invest in a risk-averse avenue.
- Bonds: Bonds are debt instruments that offer fixed returns to the investors in the form of interest payments. They are ideally suited for those investors willing to earn passive income without undertaking risky investments.
What to Remember When Investing Rs. 10,000?
One of the most important things to remember is not to invest the entire Rs. 10,000 in a single stock. Diversification is one of the critical elements of an investor’s portfolio. The chances of losing the capital are relatively lower when you divide your investment amount between two or more investments, including the ones mentioned above.
Most investors are known to rely on stocks or any security that has solid fundamentals and a reputable track record. You can also diversify your portfolio across multiple asset classes like stocks, bonds, etc.
In a Nutshell
The stock market has the potential to help you earn good returns and achieve your investment goals when investing Rs. 10,000. Investing through a Demat account may involve charges like AMC, brokerage etc.
You can calculate the brokerage charges on each transaction using the brokerage calculator.
Dhan provides you with an ideal online investing platform to not only invest but also analyse and compare multiple stocks to select the one that suits your goals and preferences. Further, whether it is about stock investments or options, you can invest in any asset class of your choice from a single platform. Start investing now!
