4 Best ways to invest money in 2017

If it is money that you are worried about, let me tell you that you are not alone. A large number of people think that they cannot start investments right away because they do not have enough money. Unfortunately, this is one of the common misconceptions that can jeopardize one's financial future forever.

The best time to start investing is when you are still young, because your money will have more time to grow. But, perhaps due to the lack of knowledge, only very few youngsters are actually keen on investments.

There is, indeed, a lot to know and learn about investments.You can choose from a number of investment instruments to make your money grow. If it's one of your new year's resolutions tostart savingup your money, read on to find out where you can invest in 2017, for the optimum growth of your money.

1. Life Insurance

Life insurance is an umbrella term for different types of insurance products available in the market. There are mainly two types of life insurance plans- term plans and cash value plans. Cash value plans provide the dual benefits of insurance and savings.Endowment plans, for example, come under the ambit of traditional cash value products that invest the consumers' money mainly into debts.Life insurance plans, therefore, are preferred by many investors these days. Simply put, life insurance takes care of the various financial needs of the customers. Parents invest in child plan to secure the future of their children, while, pension plans are best for retirement savings. Even risk-averse retail investors prefer to invest in endowment plans as their money gets invested mainly in bonds. The life insurance components and the tax saving benefits available with these cash value plans are the added advantages of investing in a life insurance product.

2. Mutual Funds

If you are new to investments, mutual funds can be your best bet for growing wealth. Though it will take some time to see the real growth of your money, return on investment is almost guaranteed in a mutual fund. That is because, in a mutual fund, your money gets exposed to both debt and equity markets. Hence, the investment associated risk in a mutual fund is much lower than that in equity markets. Having a diversified asset (among equities and debts) and staying invested for at least 5 years (or above) will allow you to get a huge return on your investment.A mutual fund pools together money from multiple investors sharing a common goal, and invests money accordingly. However, constant market monitoring is required so that you do not lose huge money when stocks go down. And, the longer you will stay invested the higher return you will get on your investment.

3. Equity Market

If you are young and your risk appetite is high, the equity market is the best option for you to invest in. There is high risk associated with equity investments, but careful asset allocation, constant market monitoring and staying invested for a longer period will help you reach your financial goal easily. The return on investment (ROI) from equities is higher than any other investment tool available in the market. As per experts, now is the best time to invest in equities. Currently, the equity markets are trading at a lower level.As a result, Blue chip funds are cheaper right now. Blue chip funds offer the highest return among the stocks. So, invest more in blue chip funds (among other funds) and be determined to stay invested for as long as possible. As per a recent report published by CNBC, Stocks are expected to rise around 9 percent in the year 2017. So, once the stock market begins to soar high, the capital appreciation of your money will be much higher than thatyou haveexpected.

4. Real Estate

There are different ways by which you can create wealth for future. But, no matter how much money you earn today, with all your hard work and perseverant investments, the amount will not be sufficient for you in the future. That is because inflation slowly eats away the value of your nest egg. If you want an almost inflation-proof investment, real estate isthe best bet for you.Real estate investment refers to buying a property, such as a house, an apartment or a residential plot or land.Though you will have to pay for the maintenance of the property and pay off the mortgage as well, you can make enough money by renting it out. You can also make renovations on the property, after few years, and resell it for a price higher than that you paid. Real estate is the only sector that thrives and flourishes. So, if you invest in real estate, your investment will remain protected against the risks of high inflation in the future.

Set a Financial Goal before Starting an Investment

If real estate investment is not your cup of tea, you can invest in mutual funds or equities but you will have to stay invested and keep on investing smaller amounts from time to time if you want to huge create wealth through investments. Whatever capital appreciation you receive, keep reinvesting them so that your money keeps growing as well. However, if you are saving money for some specific purpose such as for your retirement or child's future, it is better to invest in a pension plan or in a child plan. In a nutshell, understand your purpose and set a financial goal, this will make your investment easier and prevent you from spending huge amounts on unnecessary investments.

The End Note

If you are planning to start investments in the coming year, the above are the four best investment instruments that are expected to flourish in 2017. In our opinion, go for real estate only if you have enough money right now. Otherwise, start with mutual fund investments and as you grow more confident in market timing, start investing in equities as well. However, investing in a life insurance plan is the most important of all, because it not only allows you to create wealth for future but also secures yourloved ones from the financial exigencies in life.