Investment Ideas for Young Entrepreneurs

Whether you are about to launch your startup or have just set-up your business, you should know that a strong financial backing is paramount for sustainable success. Startups are getting a lot of traction due to immense success stories, but a lot of them are also lagging behind others due to lack of funds. Startups require constant availability of funds at the right time to grab golden opportunities for getting a competitive advantage in the market. Money in business is as critical as blood flowing through our veins; and to guarantee money flow in the business, you as a young entrepreneur should consider investing in the right investment options to do so. Here are some investment options that might be best for you:

Fixed Deposits

Growing startups take time to develop consistency of income. Due to this factor, dealing with contingencies can become a challenge. Pankaj Mathpal (CEO, Optima Money Managers) suggests that businesses should at least invest an amount worth their annual expense in a fixed deposit fund to ensure smooth operations and liquidity in the business. If you are an entrepreneur and you do not have a secondary income stream, a fixed deposit scheme can be saving grace. Fixed Deposits are an investment option in which you can deposit an amount of money for a fixed period to gain interest benefits. You can also make use of a quarterly/monthly interest payment facility to gain regular income from your fixed deposit investments.

NBFCs provides Fixed Deposit facility with the highest returns while also providing many attractive options. You can adjust the tenure of your fixed deposit and choose to make it cumulative or non-cumulative. While a longer tenure can guarantee higher interest rates, a yearly Fixed Deposit is recommended for business purposes. You can also use the FD calculator available on the NBFCs  website to determine the investment amount according to returns. With NBFCs at your side, your business can grow further without looking back.

Insurance

A growing business can encounter many ups and downs in the initial phase. You should keep in mind that banks will not provide you a loan until your startup has started gaining regular income at a substantial level. Furthermore, loans are not an easy burden to carry for a startup. Investing in an insurance fund ensures that your business will be replenished with funds after a given time. Insurance helps you reduce the risk in your business in any circumstances like adversities or market changes. While planning for an insurance policy, consider the required amount while investing. Planning for worst case scenarios is unavoidable and will help you strengthen the business for difficult times.

Mutual Funds

When you are running a business, you might not have the time to observe the stock market changes regularly for investing in it; this is where mutual funds come in the picture. Mutual Funds are provided by many companies providing different rate of returns. They invest your invested amount into equity shares and fixed income securities evaluated by their analysts. By investing in mutual funds, you can get high returns for your investment. However, you should be informed about its downside before investing in a mutual funds. Despite market stability, mutual funds are still considered a moderately risky investment as investments are made in the stock market. Furthermore, you cannot prematurely withdraw the investments made into a mutual fund with a fixed lock-in period, so it is advised to invest wisely.