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Business News/ Money / Personal Finance/  How to become rich: Top three investment options for you. Check out money making tips here

How to become rich: Top three investment options for you. Check out money making tips here

Best investment option: To become rich, individuals need to learn how to invest smartly and grow their money

There is no shortcut and no hard formula to become rich.  (Pixabay)Premium
There is no shortcut and no hard formula to become rich. (Pixabay)

Best investment option: All of us want to become rich early in our life and amass huge wealth. But, not many of us do what it takes to pursue the path. To become rich, individuals need to learn how to invest smartly and grow their money. Also, one important point here is to start your investment journey early, the sooner you begin, the better off you will be able to cash in the power of compounding. There is no shortcut and no hard formula to become rich. All it requires is patience and discipline. Money experts always advise investors to diversify their portfolio

1)Invest in equity to become rich

Investing in equity is one of the most popular ways to generate a steady income. equity investments allow investors to earn returns through dividend payments and capital appreciation. One of the key benefits of investing in equities is that it provides investors with long-term goal growth potential.

Ravi Singhal, CEO, GCL said by focusing on blue chip stocks and well-established companies with a strong history of returns, investors can minimize their risk and achieve consistent returns over the long term.

For example, Protector and Gamble(P&G) is known for its reliable dividend payments which have been steadily increasing for over 60 years. Another good example is Real Estate Investment Trusts(REITs) to get good income from equities. One can also consider Realty Income Corporation, which has a monthly dividend payment schedule and a history of consistent dividends, explained Singhal

2) Invest in Mutual funds to become rich

Mutual funds are a popular investment option for those seeking steady income. These funds pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, and other securities. This diversification reduces the risk for individual investors and offers long-term growth potential.

“To achieve a steady income through mutual funds one can choose various options such as dividend mutual funds, income funds, and balanced funds," said Dhruv Jain, Technical analyst and trader.

One example of a mutual fund that provides steady income is the Vanguard. Dividend Appreciation Index Fund, this fund invests in companies with a history of increasing their dividends each year providing a reliable source of income for investors. Another example is the National Muni Bond which invests in a diversified portfolio of municipal bonds issued by state and local governments, suggested Dhruv Jain.

3) Invest in rental office space to become rich

Investing in rental office space can be a reliable way to generate steady income. According to Nakul Mathur, MD, Avanta India, when selecting a property, it's important to consider the location, size, and condition of the building, as well as the demand for office space in the area.

“For example, a small office complex located in a growing business district can be a great investment opportunity. Many businesses are looking for affordable office space in areas with easy access to transportation and amenities, and a well-maintained property can attract high-quality tenants," said Nakul. 

Another option is to purchase a larger building and lease out individual offices to multiple tenants, suggested Nakul. This can be especially lucrative in areas with a high demand for flexible office space, such as coworking spaces or serviced offices.

With careful planning and management, investing in rental office space can be a profitable and rewarding venture, he added.

However, it's crucial to do your research and diversify your investments to minimize risk and maximize potential income.

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Updated: 23 May 2023, 10:25 AM IST
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