For salaried individuals, investing in the stock market can be a great way to earn passive
income and meet their financial goals. While salaried persons have a limited inflow of
money, their needs and dreams are not limited. Investing in the stock market offers potential for high returns, and with the right strategy, salaried persons can earn enough money to meet their financial goals, whether they are short-term or long-term.
There are various investment avenues that salaried persons can consider to meet their
financial goals. One such avenue is equity-oriented investments. For those with a high risk
profile, direct equity can be a good option for long-term investment. However, it can be
difficult to pick the right stock. Equity mutual funds are also a good option for salaried
persons as they allow investors to manage mutual funds passively. Equity mutual funds
invest in different sectors and can offer higher returns than fixed deposits.
For those with a low risk profile, debt mutual funds can be a good option. Debt mutual funds are less volatile and offer steady returns to investors. They invest in fixed-interest generating securities like bonds and government securities. However, interest rate risk and credit risk are the main concerns of investors of debt mutual funds.
Gold bonds are also a good option for salaried individuals. Investing in government gold
bonds on a regular interval basis can help investors earn interest and get the advantages of
capital appreciation in the long run. Gold hedges against inflation and investors can also add Gold Exchange Traded Funds, Sovereign Gold Bonds and Gold Funds to their Demat.
Salaried individuals can also mix financial assets and non-financial assets for their investment portfolio. Public Provident Fund (PPF) is a long-term investment option that can
be very helpful for salaried people in accumulating funds and reducing tax liability. National
Pension System (NPS) is also a good option for salaried individuals as it is a mix of equity,
FDs, bonds, government funds, etc. and can be invested based on one’s risk profile and
earnings. Recurring deposits are another good way to build a corpus with periodic payments.
Investing in the stock market is a good habit but requires an informed decision. Salaried
individuals should consider the risks associated with any investment option and invest
according to their risk profile. There is no combination of high-return and low-risk investment option, so it is important to seek the help of a financial advisor if one cannot manage their investment portfolio.
In conclusion, investing in the stock market can be a great way for salaried individuals to
earn passive income and meet their financial goals. However, it is important to invest in the
right investment avenues based on one’s risk profile and time horizon. With the right
strategy, salaried individuals can earn enough money to meet their financial goals and live a financially stable life.