How To Make More Money in 2025:All the investors of the country are preparing to welcome the new year by saying goodbye to the last year. If the past year has been good for them, then they will definitely hope to do even better in the new year. To fulfill this expectation, it is also important to try properly. And these 7 mantras of smart investment can help in making this effort more effective, which are based on the current investment situation and the signals from the condition and direction of the economy.
1. Be careful in equity investment
Large cap stocks may outperform small cap and mid-cap stocks in 2025. The equity market gave good returns in the last years, but now the pace of growth is slowing down. Due to decline in GDP growth and corporate earnings, investors should adopt risk reduction strategy. Focus on investing in large cap stocks as they are not only more stable, but their risk-return ratio is also likely to be better. It can be beneficial to gradually invest in small and mid-cap stocks through SIP.
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2. Diversify through hybrid, multi-asset funds
It is important to diversify assets in a volatile market. Multi-Asset Allocation Funds and Dynamic Asset Allocation Funds can be the right options for safe investments in 2025. These funds balance risk by investing in different asset classes.
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3. Avoid risky investments
Avoid investing in high-risk assets like options trading and cryptocurrencies. Many investors suffered huge losses due to market instability in 2024. Cryptocurrency and F&O trading is only for those investors who are adept at such high-risk investments and have the financial capacity to bear huge losses.
4. Invest in Short Term Bonds
Given the possibility of fluctuations in bond yields, investors should focus on short-term debt funds and low duration bonds. In case of a sudden increase in interest rates, the investment can be partially transferred to gilt funds or long-duration funds.
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5. Invest in health and pharma sector
Health and pharma sector can be a good investment option in 2025. Due to increasing health facilities, government schemes and benefits from exports, there are good prospects in this sector. Investing in pharma funds through SIP can be a safe option.
6. Maintain investment in gold and silver
Gold prices are expected to remain strong in 2025. Buying by Central Banks and geo-political tension will maintain the demand for gold. Along with gold, invest in silver also because it has the potential to give stable and high returns.
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7. Take advantage of your own and employer’s contributions to NPS
Apart from own contribution in NPS, tax benefit is also available on employers’ contribution. This is a great way to save tax for high income taxpayers. Tier 1 account of NPS should be used for tax saving and long term investment. Whereas you can use the Tier-II account of this scheme for long term as well as short term goals.
Apart from the measures mentioned above, you should also focus on upgrading your technical knowledge in the new year. With time the importance of technical knowledge is increasing, which can give you new opportunities to increase your income. The people of India have lost thousands of crores of rupees in cyber scam and phone scam incidents in 2024. Therefore, to avoid these cases of fraud in the new year, it is important to keep getting all the necessary information. If you take care of all these things in 2025, you will be able to increase your income further while keeping your wealth safe.
