What is an Asset?
An Asset is Anything that creates wealth and value for you without your involvement.
You are purchasing ownership in a corporation, similar to stocks. You do not have to work for the firm if you buy stocks, but the money you invest in the company works for you.
It is like if you have money and desire to build a firm in the paints sector; you borrowed it from Asian Paints, and now your money is being utilized to generate additional money by a company in your chosen industry. Remember that stocks are volatile, they fluctuate in no time but over some time, you can notice a remarkable return on your amount. It's like investing 100$ 5 years ago and now that is worth 500$ after 5 years.
What is the best stock to invest in? Everyone hasn't done their homework.
Which company will provide the best investment returns?
Which company should I invest the most money in?
Do not despair, the answer is in our second asset.
2. Portfolio of stocks.
The most user-friendly investment of all time. Play it safe and make more money.
You don't need to do much research because you're investing based on your theory. You have no idea which Indian company to invest in, but you are certain that the country has enormous potential.
Some companies in that portfolio will perform exceptionally well, while others will lose money, but the overall result is more likely to be profitable. You can invest your money by contacting a mutual fund company that will invest it in a stock portfolio.
After reading the para, name the asset.
People believe that if they have money, they must be wealthy. They retain their money in bank accounts in the form of FDs (Fixed Deposits) and ignore inflation to stay wealthy.
If you keep your money in a bank account for a year, the money will lose 6 percent of its value due to inflation. Things that used to cost $100 now cost 106 dollars. Your money would devalue dramatically over 12 years.
3. Crypto Currencies
If you just focus on Bitcoin and Etherium so after 5 years the value of crypto would be increased. The asset which will be raised in the value in the future as 5 years ago if you have invested 100$ it would now be worth 3400$
Gold and silver, the notes to be printed were first directly proportional to the amount of gold a country has but that system was closed in 1970. Therefore it won't be called a brilliant investment but a safer and sensible investment.
Buy digital gold and invest about 5–10% of your income portfolio in buying commodities.
6. Real Estate
Real estate only becomes an asset if it generates an income else it would be counted as a liability in my opinion.
Commercial real estate is the best way to invest your money but remember you need to have that amount of capital to invest in real estate.
7. Create your product and sell it.
Create intellectual assets. You will produce one if you make Youtube videos, but it will generate income when you sleep and when you are not working on them.
If you're a graphic designer, you can sell your digital artworks, and if you're a video editor, you can sell your editing abilities and profit from your intellectual property.
You created songs, music NFT, whatever it is that you do, if you develop it once and sell it, you can make money from it for the rest of your life.
8. Investing in own yourself.
The highest return on investment is always in yourself. You should spend your money on literature rather than on Saturday evenings. You have no idea how much a book can transform your life. So begin to invest in yourself.
The money you have is one thing, but the money that works for you is quite another.