Priority 7: Investment in high growth instruments - Sumit Khedkar

Priority 7: Investment in high growth instruments

 

Once you have acquired sufficient wealth in the safe investment options you should look for accelerating the growth of your investments. To accelerate the growth of your investments you need to take risk. You need to invest in high risk high growth instruments. Such as equities, mutual funds, real estate etc.

 

If you follow the overall strategy of this article then before investing in the high risk high growth instruments you would have addressed all of your financial worries and you would have acquired sufficient wealth in the safe investment options. This is important when investing in high risk options. In case of high risk investment we can mitigate the risk factor by increasing the tenure of the investment. We can only increase the tenure of the investment when we are not in need of the invested money i.e after all of our essential financial needs have been fulfilled. By increasing the tenure we can get guaranteed robust returns from the high risk investment instruments, and hence, we can convert them into safe investment options for us.

Hence, in the investment ladder I give last priority to the high risk investment instruments so that one can invest in high risk instruments with no worries and with full of confidence.

 

Following is the list of high growth investment options. 

Investment Option	Returns	Remarks
Mutual Fund	15-20%	Safer than equities.
Corporate Fix Deposits	12-14%	Safer than other options.
Equities	20-25%	High liquidity.
Real estate	12-15%	Not easy to liquidate.