Investment: Now is the right time

We need to start our investments as early as possible. Now is the right time to start the investments if we are earning.

We should create a diversified portfolio to minimize the risk involved in investing. We can invest in Fixed deposits, recurring deposits, gold, government bonds, mutual funds and stock or any combinations to create wealth.

Once we have created a portfolio, it will start generating incomes in the forms of interests, dividends and capital appreciation. The financial portfolio will reach to a stage of it being working hard for us to cover our monthly expenses too.  

Investment: Passive income

There are 2 types of income:
1) Active income
2) Passive income

Active income needs our physical presence like employee and self-employee. We may not earn if we are absent. Our salary is deducted when our paid leaves are exhausted.

Passive income does not need our presence. Our absence does not affect our business and investment.

We can earn bonus, dividend and interest from our investments.

Investment: Other fixed deposits

Investors can invest in companies, financial institution and non-banking institution for a certain period. These companies and institutions pay higher interest to the investors.

Investing in the fixed deposits by the companies and non-banking financial institutions is not easy as the minimum investment amount is higher than the fixed deposits by the banking institutions.