There are multiple times in a person’s life where they think about investing their hard-earned money. However, they do not pursue this interest since they are afraid of being scammed or putting their lifelong earnings at risk. It is advised to save some of your disposable income, however, saving too much of it reduces your chances of effectively growing your wealth. This blog aims to highlight numerous safe ways through which you can invest.

Stock Market

Pakistan Stock Exchange (PSX) is perhaps the most common means of investment known to most people. Pakistan Stock Exchange has numerous companies that issue shares for investors to purchase, listed on it. To buy shares in a company, you must first open an account with a reliable brokerage firm. You must also be well-acquainted with the firm you wish you buy shares in. It is essential to be confident in the management, financials, goals of a business before deciding to invest in it. Stocks are also extremely liquid as they can be purchased and sold very easily and it is therefore beneficial to have invested in them. Buying shares in a company also gives you shareholder benefits that include receiving discounted or special services. Dividends are an added advantage to investing in a company as most companies give out cash rewards in accordance with company policy. Small incremental investments can yield high returns in the long run. Should you choose to invest wisely.

Commodities

An important rule of investing is to diversify your portfolio as it helps reduce risk. One way to do so is to invest in different commodities. Commodities are one of the oldest investments to exist and are prevalent till date. One of the advantages of investing in commodities is that when inflation rises, demand is usually on the higher end of the spectrum which in return leads to increased prices.

Mutual Funds

Mutual funds are a very convenient and low-cost mode of investment. They are maintained by Asset Management Companies who invest in securities like bonds, stocks for you. Once you deposit money into your investor’s account, professional money managers invest in these securities for you. You do not have to get into the hassle of figuring out what stocks to purchase for example. Mutual funds cater to investors that do not or cannot invest large sums of money in a go. They are also very liquid which further adds to their list of benefits.

Government Bonds

Government bonds, as suggested by the name are investment certificate issued by the government to an investor who has paid it a specific amount of money to the government as a loan. It is to be repaid to them after a set duration of time at a fixed rate of income and interest payments. A benefit of investing in a government bond is that it comes from a credible source which minimizes chances of fraudulence. The level of risk too is reduced for a bondholder as the bond approaches maturity. You can invest in bonds either by opening an investor’s account through banks or through the Stock Market.

Real Estate

Investing in Real Estate involves investments through Real Estate Investment Trusts (REIT). It gives the investor a chance to diversify their portfolio by investing in different types of properties. By investing through a REIT, you can invest in properties you might not have been able to if you were relying on solely your own capital. Investing in Real Estate also yields high returns which is often the most attractive feature to an investor in this field. Buying and selling real estate investments is also fairly simple to do and information regarding REIT prices is easily accessible to the investor, further adding to its list of benefits.

Bank Deposits

Depositing money in a savings account is another way to grow your wealth. The bank you have deposited your money in, will use your funds for different purposes and in return will pay you interest on your savings. Savings accounts are easy to open and access and you can make regular deposits and withdrawals within the set limits. Savings accounts are also a safe way to save.

National Savings

Special Savings Certificates (SSCs) are issued as an additional investment opportunity. It is available in eight different amounts as options in the form of a certificate. All Pakistani Nationals and Overseas Pakistanis are eligible. They can be purchased from any National Savings Centre (NSC), a branch of a Scheduled Bank that is authorized to do or from the State Bank of Pakistan (SBP).

Foreign Exchange

Just like the Stock Exchange is used for the exchange of stocks, the Foreign Exchange Market is used for the buying and selling of currencies where one currency is exchanged with an another. It controls the exchange rates for currencies all over the world. It is also the largest and also the most liquid financial market in the world. An advantage of trading on the Foreign Exchange is that regulations aren’t as stringent in this market. The Forex Market also operates 24 hours a day and so you can invest in it at any time of the day. Trading on the Forex Market also requires minimal investment which is an edge not every market has. An investor new to the market can easily enter it and use technical and fundamental indicators to get a better understanding of the market and benefit from it in the long run.

Profit from Currencies

Investing in currencies has been seen as common practice in Pakistan. Even though this too involves the exchange of one currency with another, it is slightly different from Foreign Exchange trading. Once you purchase a currency, you hold it until the value of a currency reaches a high that you are satisfied enough with to sell the amount that you had purchased, and make a profit.

Exchange Traded Funds (ETFs)

Exchange Traded Funds are a convenient investing option for amateur investors who have little or no knowledge about the Financial Market. ETFs comprise of a diversified group of stocks that helps reduce risk. ETFs are liquid and can be bought and sold during trading hours. ETFs are less costly in terms of fee; however, a broker’s commission is charged against their trades. Pakistan currently has four listed ETFs and is a transparent mode of investing.

It is recommended that you do thorough research before choosing which form of investment to go forward with.