10 best assets which gave unlimited money
If you start making a net profit of 50 crore every day, even then it will take you 200 years to reach Elon Musk’s net worth. But the biggest question is how did Elon Musk reach such a huge net worth?
Today his net worth is 47,640 crore USD. If you convert this into INR, it becomes 4,28,76,00,00,00,000 crore worth of net worth. His current age is 54.
I assume he must have started earning money from the age of 18.
So 54 – 18 equals 36. If we divide his net worth by 36 years, then how much he made per year will come out, which becomes 11,91,00,00,00,000. Dividing this by 12 gives his per-month earning, which becomes 99,25,00,00,000.
How did he make so much money? Before this, I published an article “how to get rich with less salary,” in which I talked about the Paypal Mafia. If you haven’t read that article yet, then please go and read it once.
When eBay bought PayPal for 1.5 billion, Elon Musk received 175 million dollars; in today’s date, this is nearly 1500 crore rupees in INR. A person becomes rich because he has equity.
Today, what equity do you have? Where do you have investments?
You will say, “I only have 500, 1000, etc., how do I start with that? How do I become like Elon Musk?” So at least your basics should be right.
If you want to set your basics right, I am writing this article for beginners so that you understand how investing is done, what risks are involved in investing, and what you can create in your life from it.
So today I will tell you about 10 such assets or investment options. I will explain everything according to risk, where you should put your money, but you must understand that these people become rich because their companies get such high valuations.
Today Tesla’s price is 426 dollars and its PE ratio is running at 285.
So I am going to explain risk-wise how you can start investing. I will start with the lowest risk and in the end, I will tell you the investment options with the highest risk.
Saving account
The lowest risk is in a savings account. You will say that we all keep money there, but there is a small mistake that most people make. It is possible that even you are making the same mistake today.
When you keep money in a savings account, your money is generally safe unless the bank collapses. If your bank account is in a government bank, then you get a very low rate of interest.
For example, if your bank account is in IDFC, which is a private bank, they give you up to 7% rate of interest. Even through this, your money can grow.
Now I will take you to a lump-sum calculator. Suppose you have 50 lakh rupees in your bank account today, and you are getting a 7% rate of interest. If you put this money in the bank for 20 years and forget about it, then your 50 lakhs will become approximately 2 crore.
So whatever amount you have, you can go and check it yourself on a lump-sum calculator.
You can see how much your money will grow, at what speed it will grow, and how much time it will take.
Gold
This is riskier than number 1. There are many options to buy gold. I generally buy jewellery, but if you are thinking about digital gold instead of physical gold, then you are thinking wrong.
There is scam in digital gold. When you go to buy, the rate will be something else, and when you go to sell, the rate will be something else.
But I will tell you such an option through which you can buy and sell digital gold at the same rate, and the biggest thing is that GST will not be applied.
That is Gold ETF. If you look at it, according to risk it is kept at number 2.
The risk is very low, almost negligible, but how big is the gold CAGR return — it is approximately 12%.
If I keep the same amount that was in the bank account and put it at a 12% return, then see the magic today.
Image number 2
So you can see how big the difference is. Just because we took a little more risk and invested in gold, our return changed completely.
Buying a Gold ETF is very easy. For this, you need a demat account. Demat accounts open for free if your age is above 18. Inside a demat account you store your shares digitally, ETF is also stored the same way, so this is also a type of share.
There is no GST in this. Now if you look at gold ETFs, GoldBees is India’s most popular and biggest gold ETF. It costs only 104 rupees — meaning you can invest in gold even with 100 rupees.
There are many gold ETFs, but all ETFs work almost the same. As much as gold goes up, the gold ETF will go up the same. But there is one more benefit in ETF — in ETF you also get dividends which are automatically invested.
If you want the cheapest gold ETF, then you have to search GOLDCASE in your demat account. This ETF is only 19 rupees. If gold performs, this will also perform. You can also invest in it according to the amount of money you have.
Silver
If you look at silver’s return in the past few years, it has given extremely explosive returns.
Analysts are saying that in the coming time, silver can even outperform gold. You get SilverBees for 155 rupees, although there are many silver ETFs as well. With just 16 rupees, you can invest in silver through the SilverCase ETF.
If you look at silver’s long-term CAGR, it comes around 10 to 12%, but if you check the past one-year return in INR, it is approximately 54 to 65%. The year before that, the return was 34 to 36%. And the last 5 years’ return is 19%.
Relatively, silver has been running fast for the last few years, that’s why analysts are saying that silver can outperform gold too.
If we put a 19% return into the lump-sum calculator, then see what magic happens.
Here, when you invested in gold, your money was becoming only 5 crore,
but now it is directly becoming more than 16 crore.
REITs Real Estate Investment Trusts
In India, you have 3 REITs available for investment. You just have to type “REITs” in your demat account, and they will appear in front of you. EMBASSY, MINDSPACE, and BRIET.
The price of all these ETFs is below 500 rupees. Now if you look at their average return, it is 10% per year.
10% is fine, but there is one amazing thing — REITs also give you dividends, and that too approximately around 6%. This dividend is directly credited to your bank account.
Here your money is now becoming above 9 crore. This option is much better than banks,
and recently the returns have started increasing even more. If real estate prices boom in our market, then their prices will also boom.
There is a little more risk, so the profit is also more.
Index ETFs
Now the risk is increasing a little, so you can invest in index ETFs, such as NiftyBees, which means your money is being invested in India’s top 50 companies. BankBees means your money is being invested in India’s top banks.
Midcap Nifty, HDFC SML 250 — here your money is invested in 250 small companies. If you want to invest in an international ETF like NASDAQ, then you can invest your money in MON100.
You will find all of these in your demat account — you just have to search for them. The average return of an index is around 12 to 15%.
If you had invested money here as well, it would have become 8 crore.
Direct stock investing
This is even more risky, and as we move downward, the risk will continue to increase. Because some stocks can give you exponential returns, and in some stocks your money can also sink.
Here you need to know two things — the first thing is you must know fundamental analysis, and the second thing is technical analysis.
Intraday trading
When you buy stocks in the Indian market and sell them on the same day, you get up to 5X leverage.
This leverage system is given to you in your demat account when you go to buy any stock.
If you buy in delivery, you will need more money, but if you buy in intraday, you will need very little money.
People make a lot of money through this. I keep publishing articles to improve your trading skills.
F&O Future and Options
Futures and Options are even more risky because here you don’t get just 5X leverage — you get up to 20X leverage, because options can also be very cheap, and people usually don’t have knowledge about this.
If you also do it without knowledge, then consider it pure gambling — you will definitely face losses.
But if you understand it in detail and look at it as a business, then you can also make money from here. People who do Futures & Options with good capital and discipline are the ones who make money.
Inside this, I will recommend option selling more, even though it requires more money, but your probability of profit is higher.
Crypto investing
In my opinion, crypto investment is very risky, because any coin can rise 10%–20% in a single day, and sometimes when a pump comes, you can even see a 100% return in one day.
But the same way a coin goes up fast, it comes down at the same speed — this is called pump and dump, and this is very common in the crypto market.
If in the short term you catch the boom, then yes, you make money, but if you invest at the top, then you can lose your entire capital.
Forex and Crypto trading
In my opinion, this is the most risky. If you trade in forex or crypto, you get extremely high leverage here —100 to 200X leverage is very easily available.
If you have taken just 20X leverage, then even a 5% move will liquidate you, meaning your entire money will vanish. But yes, your money can also double if that 5% move comes in your favor.
The crypto market is extremely volatile —here you never know when the trend will change or when a sudden move will come.
You should take leverage according to your capacity —it may sound harsh, but you should take only as much risk as you can afford.
Never think that you have to become a millionaire in one day. If you learn trading with a sensible strategy, then you can make money. And before using any strategy, you must backtest it.
If your strategy is profitable, then use it with algo. With algo, you just need to give your login details, and it will take trades automatically and manage your positions on its own.