After you get out of college, you enter a world which forces you make rational decisions and reconsider your life choices. It is never too late to invest your hard-earned money somewhere you will get fruitful returns in the future.
Why should you be investing in the first place? A proper investment allows you to grow your wealth and at the same time generate inflation-beating returns, often benefitting from the power of compounding. Investments also help you in meeting your financial goals, such as purchasing a house or building an emergency fund or accumulating it for post-retirement plans.
What I have learned and observed personally from investing is that it instils a sense of discipline over time. You develop a habit of saving a particular amount every month from your salary or business and putting it together for useful purposes.
How much should you be saving and investing?
You can always invest for short-term goals or make a plan for your retirement. Most of us retire at the age of 60 which means that for the remainder of our lifetime, we will need a proper investment to fund our lifestyle.
Experts have suggested that you should be saving 20% of your income. You can automate 20% of your paycheck to go directly into the investment account. This might not be viable for everyone but is still the most favourable of all.
What are the different types of investments?
You have several investment options available based on your financial goals, risk tolerance, and investment horizon. Some of the popular investment options include:
Direct Equity:
It is commonly referred to as stock investment and is one of the most preferred investments for investors. You buy shares of the company depending on how the company is performing in the market. Stock trading can earn you possible attractive returns but also involves a lot of risks.
Mutual Funds
A pool of money is collected from many investors who share a common investment objective. That money is invested in various instruments such as stocks, bonds, money market etc. Mutual funds are way more flexible as you can start or stop investing as per your wish with much lower risks than equity.
Public Provident Fund
PPF is a government-backed saving scheme that aims to mobilise small savings and provide secure post-retirement life. It has a lock-in period of 15 years and that time frame itself makes you save a lot of money.
Fixed Deposits
Fixed Deposits are regarded as an ideal investment for conservative investors as they provide a fixed and guaranteed rate of returns.
Apps that help you in investments
Zerodha Kite
Kite is one of the best and the biggest trading apps in India. It offers you a wide range of stocks to trade in and has over 5 million downloads.
Android Ratings: 4.2/5 stars
Android Downloads: 50 Lakh +
iOS Ratings: 3.3/5 stars
Top Features:
- The app helps you evaluate the market condition.
- Advanced options for placing orders such as Brackets and covers, IMO, and much more.
- Easy-to-use app.
Pros
- Can be used in 10 regional languages.
- Extensive charts to view market conditions.
- Place limit to orders.
Cons
- No trading in mutual funds.
- No price alerts.
Angel Broking
Founded in 1987, it is one of the oldest stock market apps that is used by 1.4 million people in India. You can either get a ready-made portfolio or get it done by experts.
Android Ratings: 4.2/5 stars
Android Downloads: 1 Crore +
iOS Ratings: 3.5/5 stars
Top Features
- Analyze the market with the help of experts.
- Maintains your portfolio.
- Build a classified, low-cost portfolio.
- International stocks are available for investment.
Pros
- No brokerage charges.
- Portfolio management
- By investing in small cases, you can build a low-cost portfolio.
- Fractional investment.
Cons:
- Trading through calling is charged at Rupees 20 per executed order.
Groww
Groww is one of the best trading apps in India that gives you the option to trade in gold, stocks, fixed deposits, and much more and this is the reason why it has become so popular with time.
Android Ratings: 4.3/5 stars
Android Downloads: 1 Crore +
iOS Ratings: 4.5/5 stars
Top Features
- Invest in gold, field deposit, domestic and international stocks, mutual funds, etc.
- Withdraw Rs 50,000 or 90% of the total amount invested(whichever is lower) per day.
- Self-directed trading.
- Helps you study the market trends with the help of charts.
Pros
- No account opening charges.
- No account maintaining charges.
- ISO certification to ensure that your data is safe.
Cons
- Advanced order types are not available.
Sherkhan App
Even before I started training I knew of Sherkhan as a trading app. Sherkhan has been running successfully for 21 years now and has over 2 million clients in India. The platform provides a wide range of products for buying and selling and build a diversified portfolio.
Android Ratings: 3.8/5 stars
Android Downloads: 10 Lakh +
iOS Ratings: 2.8/5 stars
Top Features:
- Advanced charts to help you do the market research.
- Research reports help you make better investment decisions.
- Relationship managers monitor your portfolio and give you guidance.
- Wide range of products to trade with.
Pros:
- You can trade anytime and anywhere.
- Updates you about the market news.
- Free learning resources.
- No minimum deposit is required.
Cons:
- No global stocks to trade with.
5paisa Online Trading App
5paisa Online Trading app has a user-friendly interface with advanced charts, learning resources and auto-investing features.
Android Ratings: 4.2/5 stars
Android Downloads: 50 Lakh +
iOS Ratings: 4/5 stars
Top Features
- Trade-in stocks, mutual funds, currencies, commodities, and more.
- Auto-investing feature works based on your specific goals.
- Easy to use interface.
- Single click for buying and selling.
- Research on the market conditions with the help of advanced charts.
Pros:
- Research tools.
- Easy to use.
- Auto investing.
- Learning resources.
- 0 commission on mutual funds trading.
Cons:
- 100 per call charges for ‘Trade on Call’.