Should i invest 2000

The decision to invest will depend on what else is going on in your life, so here are some things you should think about:. But you should be prepared to leave your money invested for at least five years. We have outlined some of the best ones for cost and customer service here.

Watch out for early exit charges to access money within a few years of investing. These can run into the hundreds of pounds. Within these products, you would then choose what to invest in. Here are tips on how to choose investment funds. As mentioned in the previous section, there are tax-free wrappers you should use to invest.

Which one you choose depends on your investment horizon:. A stocks and shares ISA is likely to be most suitable unless you will turn 55 within 20 years, in which case a pension might be a better tax wrapper for you. It comes with substantial tax perks that will increase your pot size:. Check out our pensions guide for more on this. If you are self-employed, consider a self-invested personal pension or ready-made personal pension.

If you are shopping for a pension, Fidelity is one of our top-rated providers. Find out why here. Invest according to your attitude to risk. Remember these are higher risk than bonds. Spreading your investments this way can help level out any fluctuations or falls in prices, so you weather the bad times and benefit from the good. Find out more in our free five-part beginners course to investing. Some good examples of robo-advisers include Nutmeg and Wealthify.

Regardless of which camp you fall into, there are always solid investment options available if you're willing to devote the time to becoming an "in the know" investor.

Arguably, one of the greatest investment options open to Americans as long as they meet certain income limits is the Roth IRA. A Roth IRA has no upfront tax benefit, but the back-end benefit is incredible. With a Roth IRA the account owner will owe nothing in capital gains taxes as long as he or she doesn't make any unqualified withdrawals.

I'd encourage anyone with extra savings lying around to consider maximizing their Roth IRA contribution annually. How about investing in yourself? According to the Pew Research Center in Feb. Sending your kids to college is expensive The smart solution, and one of your best investment options could be to start a plan for your kids. A plan is an education savings plan that works a lot like an IRA in that you can invest in various types of assets to grow your money over the long run.

What's great about a plan is you can make withdrawals from the plan for specific educational purposes and have no tax liability on capital gains from the federal government.

Some states may even offer an upfront deduction or some form of income exemption, though you'll have to check with your states' regulations to be certain. As a quick reminder, there is no upfront tax benefit when contributing to a plan.

Among your investment options, opening a personal stock investment account is another potentially smart move.

The stock market has a tendency to increase over time. Although the stock market is prone to an occasional "hiccup" or two from time to time, it has been shown to be one of the most consistent generators of wealth over the long-term, and has regularly crushed investments like bank CDs or money market accounts. Not sure where to get started? If you're a novice investor or just petrified of risk, consider investing in electronic-traded funds, or ETFs.

An ETF is nothing more than a basket of stocks that represents a sector or index, giving you incredible diversity for what can be a minimal investment amount. Finally, for those of you looking for a steadier return on your investment with a good chance of capital preservation, consider purchasing corporate bonds. Treasuries are always an investment option here as well, but they typically carry a lower yield because of their unparalleled safety of being backed by the U. Instead, corporate bonds are usually going to offer an inflation-topping coupon rate that's bound to make income-seeking investors smile although the risk of default is a bit higher.

Milind Soman just declared 50 as the new To most Indians, a recurring deposit monthly form of FD at a scheduled bank is the common route taken. While this may seem reasonable, the earning potential is limited for two reasons. While the above calculations are built on MS Excel, achieving those require a complete understanding of various investment options, risk, market conditions, macro-economic factors and most importantly, timing. It works for all amounts of investment.

It just takes 5 minutes to setup your investment account. Are those numbers achievable? Does not account for currency fluctuations.

Last updated October 25, Our weekly newsletter with finance tips and investment insights from our experts. Your privacy is important to us. Share this article. Scripbox » How much can I make if I invest Rs.

Where we invest matters the most To most Indians, a recurring deposit monthly form of FD at a scheduled bank is the common route taken. You need an investment advisor to help you get there While the above calculations are built on MS Excel, achieving those require a complete understanding of various investment options, risk, market conditions, macro-economic factors and most importantly, timing.