Looking to secure your financial future with your partner? Discover investment options to grow your wealth and achieve your dreams together!
Investing and growing wealth is crucial for couples in this new era. Let’s explore investment options to grow wealth and achieve your dreams together!
In the last two editions, we discussed common money-related questions that couples often have. We discussed whether it’s a good idea to merge finances and shared some tips on building financial stability as a team.
Today, we will take a step ahead to understand how you can invest and grow your money together as a couple.
Investing as a couple has several benefits. It provides financial stability and helps you work towards your goal of saving or investing.
Now, even if you save a lot of money, the issue comes down to ‘Where should we invest this money?’. That’s because both of you would have different thoughts and risk appetites regarding investing your money. So, where should you invest in such a situation?
Here are a few things you should do:
- Sit down with your partner and understand their ideology and risk appetite for investing.
- Find common ground. For instance, if your partner has a high-risk appetite while you have a medium-risk appetite, you can choose to invest with the help of financial professional like Teji Mandi. By doing so, you will eradicate all the innocent mistakes that retail investors often make in their early journey of investing, and you will get a portfolio which is actively managed by professionals.
- Diversification is crucial no matter where you invest. So, if you choose to invest in the stock market, don’t forget to diversify your portfolio with less risky investment options like REITs, FDs, bonds, gold, etc.
Few Investment Options for Couples
Before we start, note that we will look at investment options ranging from high-risk to low-risk alternatives.
Investing in direct equity can help you achieve your goals faster. Historically, it is the only investment option offering inflation-beating returns to its investors. But, while investing in equities, we must remember that only some stocks will offer you great returns. Hence, analysing companies while investing is crucial.
If you and your partner are not familiar with the ups and downs of investing, don’t worry, as equities can be a complex topic!
Consider reaching out to a Sebi-Registered Research Analyst like Teji Mandi for expert guidance. We will help you navigate the world of investing so that you can work towards achieving your financial goals as a couple.
Equity Mutual Funds
Mutual funds have been gaining popularity recently, but it’s essential to be aware of their potential downsides, such as expense ratios and exit loads. Yes, you get professionally managed funds, but it comes at a considerable cost, especially in the long term.
You can choose a passively managed equity fund that invests in the benchmark indices, Nifty50 or Sensex, instead of an actively managed fund. With this option, your fund will produce similar returns as its benchmark.
To diversify your portfolio can choose a safer investment option like debentures and bonds. Remember to select secured debentures and check the ratings of the bond or debenture before investing in one. If you have a long-term horizon, you can also choose to invest in government bonds with as low as Rs 10,000. These days, green bonds are a trend, and it offers a good return of up to 7.5%
Investing in real estate was costly, but today we have found a cheaper alternative too. This investment option is called Real Estate Investment Trust (REIT). These are trusts that own real estate assets and give them on lease. As an investor, you can buy shares in a REIT from the stock market and earn a portion of the income generated by renting the underlying real estate properties.
Investing in gold has become increasingly popular in recent years, and modern financial instruments have made it easier than ever before. Gold ETFs (Exchange Traded Funds) allow investors to buy and sell ETFs in the market anytime they wish to. SGBs (Sovereign Gold Bonds) are issued by the Indian government, which allow investors to purchase gold in the form of bonds, and you get a 2.5% simple interest twice a year. Digital gold is a newer option that allows investors to purchase gold for as low as Rs 100 through digital platforms, eliminating the need for physical storage.
To conclude, choose investment options wisely as per your financial goals and risk tolerance. Remember, investing as a couple is not just about making money but also about growing together and building a brighter and more stable financial future.
That’s it for today.
Share this article with married couples to help them achieve their financial goals on time.