4 Best Investment Options To Manage Your Portfolio As an Entrepreneur/ Solopreneur – 2022

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Most solopreneurs want to make investments that will reap big returns as quickly as possible while minimizing the risk of losing money.  Risk and return are intertwined. You must always understand your risk profile and ideal investment tenure before investing in a particular option 

Investment Options For Entrepreneurs/Solopreneurs

 

Some investment options are:

 

1. Fixed Deposits (FD)

Fixed deposits are frequently regarded as one of the safest short-term investment options. They can be used for the following reasons:

  • To use it as an emergency fund;
  • Good for people whose risk appetite is low;
  • No depreciation on the principle;
  • Market fluctuation does not affect this investment medium vastly

 

2. Mutual Funds

While mutual fund investments are exposed to market risk, one should assess the risk before investing. Mutual funds have preferences for every type of investor because there are different mutual funds with varying degrees of risk.

 

You can build an investment portfolio based on your preferences, whether you’re looking at short-term or long-term investments. Monthly systematic investment plans or systematic withdrawal plans can be good investment option for financial management, if you have a lower risk appetite and desire a fixed income from mutual funds.

 

If you’re seeking a high-return investment in India, it could be a good option to manage your portfolio.

 

2. Stocks

One of the first questions you should ask yourself is whether you want to invest for the long term or short term? You should only invest in stocks if you have a high-risk appetite. 

 

When you invest in stocks, it essentially means that you are an owner of the company or that you have a share in the company. You gain the right to participate in company meetings and have a say in the business’s decisions.

 

You also earn a percentage of the profits as a payout based on your shareholding in the company. As an investor, you must understand that a company’s performance has a good and negative impact on its stock price.

 

3. Bonds

These are debt instruments that pay off a borrower’s debt to a corporation or government.  If a company wants to grow their business and operations, they require money. One way to do that is by raising debt or issuing bonds.

 

Bonds are referred to as fixed-income security as they have regular fixed interest payments, and the principal is paid back at maturity. Today there are platforms like Wint Wealth which work with NBFCs to bring secured bonds that are listed on their platform.

 

4. Gold

Nowadays, several banks sell gold coins. Paper gold is a one-of-a-kind method of obtaining gold. Investing in paper gold, which may be done through gold ETFs, is more cost-effective.

 

When gold is the underlying asset, such investment (buying and selling) takes place on a stock exchange (NSE or BSE). Another way to possess paper gold is to invest in Sovereign Gold Bonds. Gold mutual funds are another option for investors.

 

Conclusion

As an entrepreneur/ solopreneur, your investment options are entirely dependent on the quantity of capital you have and the amount you can invest.

 

Because a solopreneur’s cash may be restricted, he or she should consider all potential possibilities before committing to one. Alternatively, an entrepreneur/ solopreneur can seek advice from a professional investment advisor on which options are the best to invest in.    Happy Winting!  

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