Investments to Avoid: Expert Advice from Finance Influencer Srishti Gosavi

Wondering which investments to steer clear of? Investing wisely is crucial for building a stable financial future. However, not all investments are created equal. Srishti Gosavi, a renowned finance influencer, highlights investments that might seem tempting but should be avoided to safeguard your hard-earned money. Read on to discover the investments to steer clear of and why.

1. Recurring Deposits (RDs)

Why RDs may not be the best choice? Recurring Deposits (RDs) often offer lower returns compared to Fixed Deposits (FDs). With inflation sometimes outpacing FD returns, investing in RDs, which yield even lower returns, might not be worthwhile. Therefore, it's better to opt for FDs if you're looking for safer, more reliable returns.

2. Penny Stocks

Penny stocks, typically priced under Rs 10, might appear cheap but often remain undervalued for a reason. Many lack strong fundamentals and seldom appreciate in value. The only scenario where penny stocks might surge is if a larger company acquires or invests in them. Thus, it's prudent to avoid these high-risk investments.

3. Cryptocurrencies

The cryptocurrency market is highly volatile, often driven by speculation and influential tweets rather than intrinsic value. With no underlying assets backing these investments, they can be likened to pure betting. Srishti advises steering clear of cryptocurrencies due to their unpredictable nature and potential for significant losses.

4. Investments in Unregulated Companies

Before investing, always verify if the company is registered with SEBI or RBI. Unregulated companies pose a high risk since there's no governing body to claim your money if the company dissolves. Ensure the investment is under a credible regulatory authority to avoid financial pitfalls.

5. Real Estate Investment Trusts (REITs)

While REITs offer a way to invest in real estate with smaller amounts, their average returns currently stand at around 7-8%. Although this might improve in the future, it's not particularly lucrative at present. Therefore, consider other investment avenues for better returns.

6. Savings Accounts

Money in savings accounts typically earns 4-5% interest, which doesn't keep up with inflation rates of 6-7%. This effectively results in a negative return on your savings. Instead, look for higher-yielding savings options to protect your wealth from inflation.

7. Public Provident Fund (PPF)

The PPF interest rate currently stands at 7.1%, which might not be sufficient for long-term goals like retirement. Srishti suggests considering the National Pension System (NPS), which offers higher returns of 14-15% over the long run, making it a better option for building a retirement fund.

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Bad investments can vary depending on individual risk tolerance and financial goals. Srishti Gosavi's insights provide a clear guideline on which investments to avoid to ensure a robust and secure financial portfolio. If you need personalized advice, don't hesitate to book a session with Srishti and get tailored guidance for your investment strategy. Remember, informed decisions are key to successful investing.