Best investment in sri lanka
There are the many best ways to invest your money in Srilanka. We handpicked some of the easy and efficient investment opportunities sri lanka,
There are many investment ideas in sri lanka. Different types of investments as tools that can help you reach your financial goals. Each has its own general set of features, benefits, risk factors, and ways that investors can use them.
Find out more about the different way you can invest your money in Srilanka correctly.
First and the best way to invest money in Srilanka is Stocks. Stocks or shares denotes that, we can be a part of the ownership of a specific company. So when you invest in stocks or shares, you become one of the owners of the business. Stocks gives us ownership.
Depending on the success or failure of the business, you will make or lose money over time. And the risks and rewards depend on the type of stocks you own, what is happening in the stock market in general, and other factors.
According to Srilankan regulations, the process of investing in a company’s shares requires a stockbroker to handle your investments and advice, after that you can invest in the company as owing the share.
Investing in stocks generally requires constant investment over a long period of time to make big profits in a company.
Next best way to invest money in Srilanka is Bonds. A bond could also be a loan that an investor makes to an organization, government, agency, or other institution in exchange for interest payments for a specified term plus repayment of principal on the maturity date of the bond.
There area good sort of bonds,
- Treasury bills
- Agency bonds
- Corporate bonds
- Municipal bonds
Bonds are reversals of loan . You give money to the government or a specific company for a certain interest rate, and the institution repays you over time.
When you invest in bonds, you run the risk that your investment will lose money, especially if you have bought an individual bond and want or need to sell it before it expires. The prices of bond funds can fluctuate just like stocks.
The risk also depends on the type of bond you own.
Next most common way to invest money in Srilanka is Mutual funds. Mutual funds consists a pool the cash of the many investors and invest consistent with a selected strategy.
The funds are of different types, each with different characteristics. In general, funds offered to the public such as mutual funds, exchange-traded funds and closed funds.
Mutual funds must be registered with the Securities and Exchange Commission (SEC) as corporations. The funds offers diversification and professional management and may include a good sort of investment strategies and designs .
As with any security, investing in a fund involves risk including the possibility of losing money. And a fund’s past performance is not an indication of its future performance.
Mutual funds are like a business that raises money from different investors and invests the money raised into various investments with a lot of profit over time and they pay off the profit to investors with a certain percentage of margin.
Digital assets like crypto currencies are generally uneven these days. So far, many people are embarking on investing in crypto currencies.
According to Srilankan standard, it is unauthorized and unregulated, however it is not illegal until 2021. (But as per Srilankan cabinet approval in 06 October 2021, crypto registered as acceptable authorized system)
There a lot of crypto brokers and as well as lots of different crypto currencies available in the market, this gives more interest for investors to invest in crypto.
It is also difficult for most individual investors to understand these complex investment products and determine the risk levels associated with them.
A reliable crypto currency is identical to stocks and their characteristics, the behavior patterns are similar but, depending on liquidity and other aspects, stocks are still legitimate than crypto.
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Commodity
The physical resources we can access in our world are mostly come into the category. Such as metals, petroleum oils and financial instruments.
Commodity futures are agreements to buy for or sell a specific quantity of a commodity at a specific price on a specific future date. Anyone trading futures contracts with the public or providing advice on futures contracts must be registered with the National Futures Association (NFA), the independent regulator for anyone trading futures contracts with the public.
Commodities are a resource and the only reason their value increases over time is because their availability decreases over time.
As everyone knows, the most widely and typically used investment method used by Srilankan citizens is fixed deposits. Fixed deposits are an investment opportunity offered by banks for higher interest rates in the longer term.
Fixed deposits are still granted with higher interest rates than normal savings accounts and lower risk than any other investment we have to date. But the interest rate of FD is very low compared to other investments.
Fixed deposits has a term to access funds for our use until that we can’t access to those funds. If we want to access the fund before maturity period, then we will end up in less interest percentage which is given to normal saving accounts.
Author’s disclaimer
Now you know how to invest money in sri lanka. But everyone must understand the basic factors of investments:
- Evaluating Investment Performance – To assess how well your investments do , you will need to think about several alternative ways of measuring performance. The measures you select will depend upon the knowledge you are looking for and therefore the sorts of investments you own.
- Asset Allocation – Asset allocation may be a useful to manage systematic risk because different categories of investments answer changing economic and political conditions in several ways.
- Managing Your Portfolio – No matter you are above in portfolio or below in portfolio you have to consistently try to invest and increase your portfolio over time again and again. This leads to a significance change in your balance later on.
- The Reality of Investment Risk – All investments carry some factors of risk. Stocks, bonds, mutual funds and crypto currencies can loss their value over time, if the market condition and economic conditions were bad. Investing is the important thing for financial growth. But don’t do everything on your own. Get some help form someone who have experience in that field.
( If you wish to Watch a cool video explaining this topic – CLICK HERE )
Check out these 6 easy and practical investment tips :
- Find a large sum of money that you can invest, with a little taken off for emergencies.
- Start small, with an investment that has low risk and high potential return, such as mutual funds or stocks.
- Don’t be rash about what to invest in; research the market thoroughly before deciding where you will put your money in efforts to lower risk of losing too much of it quickly.
- Expect a little bit of risk in any investment, but do not expect to lose everything. Before investing, make a detailed list of the risks and benefits of the investment.
- Receive regular statements from your mutual fund or stock company to confirm that they are performing well or dropping in value, and keep tabs on them throughout the year.
- Don’t invest the fund which you can’t afford to lose. Also, don’t invest more of your money if you are paying interest on debts such as mortgages and credit cards.