5 best small investment ideas for beginners in 2022

            today in this article we are going to talk about 5 best small investment ideas for beginners which will be risk free and which can be started even by a small capital investment. for example the investment idea like gold, as you may know that currently what is the price of gold, but still one can start investing in it even with a lower investment of just 1000 rs and that would also be risk free.

• recurring deposits.
• gold.
• bonds.
• mutual funds.
• small business.

• small investment idea - recurring deposit (rd) :- 

          according to the indian market the small investment idea for the beginners is recurring deposit. now, what is recurring deposit? you guy's may already aware about what is fixed deposit (fd) in which one have to invest a lumpsum amount like 20,000 rs, 30,000 rs, 50,000 rs, etc.

          it means you have to keep some amount while creating a fixed deposit. but if currently you have only 1,000 rs or you think that you can invest only 1,000 rs every month at that time recurring deposit play it's role. 

          as you see according to its name that is recurring it means you the investor have to pay the amount on per month basis. for example you visited to your bank and and from there you started an rd according to money you willing to invest.

          at that time bank will start the rd and each month it will withdraw that particular amount from the saving account and invest it automatically in the recurring deposit account and gave some returns on that and the returns provided by the recurring deposits are more as compared to saving accounts. 

          rd's are mostly risk free in which small investors can invest easily but the tenurity of the rd's are between 6 months to 10 years so in that one can also select the time period for how long he wants to keep on investing.

          for example if you make the rd for 10 years on the amount of 1,000 rs than that amount would be automatically deducted from the account continuously for 10 years, but how much returns do you get on that invested.according to some metrics recurring deposits provide rate of returns to be around 5% to 7% on the total invested amount.

              recurring deposits may be risk free but the major disadvantage of this thing is that it does not beat the inflation. inflation refers to the rise in price of any product, goods and services, now what does that mean it can't beat the inflation? for example if you made the investment of 1000 rs for 10 years so it will become 1,20,000 rs without interest. but currently if you can buy a product for 1,20,000 rs than it is not necessary that even after 10 years the product will be cost to that initial price there are huge probability that it will get more expensive that current price. so in that way the investment is risk free and also provide a good returns but it can not increase with the rate of inflation.

• small investment idea for beginners - gold :- 

           investing in gold is also one of the best small investment idea for beginners, currently the price of gold is very high, but still one can invest in it with very low amount. gold is a kind of commodity which peoples think that is low risky because its price neither increase in a tremendous way nor decrease disastrously.

           the gold price increases or decreases very gradually as there is no commodity which can replace gold directly. so how to buy gold with such a low investment? or how one can start investing in gold with small amount?

           now, one can start investing in it through e-gold or one can say digigold. now what is digigold? as you can understand from its name the gold that you purchase would be in the digital form and it will be get transferred to your demat account. one can start investing in digigold from just 1,000 rs. after investing a good amount if you think that now you have a good quantity than you can also bring it in physical form or you can sell it directly from your demat ac in digital form.

           one of the best benefit of having gold in digital form is its security. an investor does not have to worry about losing of gold or robbery because all the transactions are recorded and transacted under the guidelines of national spot exchange. some of the digigold options providers in india are paytm, phonepe, motilal oswal, etc.

• best small investment ideas - bonds :- 

           the third investment idea for beginners is bonds. however bonds is not that famous because investing in bonds was a difficult thing to invest in but currently it is getting famous slowly because now there are some platforms that's allowing its users also to  invest in bonds. those investment platforms are icici direct, etc.

           the two major advantage of investing in bonds are risk free investing that means the capital investment or the initial investment that you put into bonds is risk free and along with assured returns that means they provide guaranteed returns for the amount that one have invested. for example if there was mention that the particular bond provide 6% of returns on annual basis then it will definitely provide 6% on annually basis.

           but the major disadvantage for investing in bonds is that it have a certain lockin period,  that means untill the lockin period ends the investor can not be able to withdraw his invested money. now, what is this bonds actually is? when government wants to work on a high value project they issue bonds in which they raise funds from the general public.

           while raising the bonds governments declared that a particular number of years as lock in period and they assured that the invested amount would be risk free and along with fixed returns. you can get all the information while investing in bonds along with the lockin period. but how to invest in bonds? one can visit icicidirect.com, nseindiaipo.com, etc to start investing in it.

• investment ideas for beginners - mutual funds :- 

          mutual fund is a best small investment idea for beginners which also helps to beat the inflation. if an investor keep on investing a particular amount on monthly basis. however according to the disclaimer it shows risky but it is not as mostly peoples like to invest in equity mutual funds for that reason, one can start his investment even from just rs 100.

          mutual funds also have huge types of funds they are like sectoral focused, multi cap fund, flexi cap fund, debt fund, etc. one can expect returns upto 15% to 20% here on annual basis. some of the advantages of mutual funds are like rich diversification, systematic investment plans, etc.

          as there are some advantages of mutual funds vice versa there are also some disadvantages of mf's they are high charges, elss mutual funds, etc. the fund managers charge a particular amount or a particular number of percentage on the total returns which could be a disadvantage for starter investor.

         as they don't be able to have a clear idea of the charges that would be get levied to them. some of the other taxes and charges are like stamp duty taxes, exit load charges, some other expenses, ltcg, etc. here ltcg are long term capital gains which is levied when an investor keeps on investing for long time. majorly the returns received from long term capital gains would be levied at 10% on total returns of more than 1 lakh rs in a financial year, however if an investor withdraw his money from the fund before 1 year than the total returns will be charged by 15% for more than 1 lakh rs in a financial year. elss or equity linked saving scheme is the another disadvantage for small beginners.

           while starting investing in mutual funds many of the investors don't know about the elss aspect invest in these funds and after sometime when they see that they are not being able to redeem their money then they feel regret that actually elss funds have 3 years of lockin period in which an investor can not withdraw his money from the fund. 

• best investment idea - small business :- 

          starting a small business is one of the best small investment idea for beginners in current condition. the market is going trough a deep recession so this small investment idea is good to kick start the career. now even there are so many business which a starter can start even with very low investment they are like mobile food shop, cloud shop, cafe's, etc.

           however investing or starting own business would be a good investment option as there are some good advantages of this thing are like personal input, profit maximization, higher opportunities of growth, etc. here the personal input refers to the efforts that the owner or starter put into the business to run the business. the profit maximization and the opportunities of growth are also completely based on the efforts provided by the investor.

           as there are some advantages of businesses similarly it also have some disadvantages in it they are like high competition, working capital, effect of services, etc. here, when a starter starts his business he have to face lots of challenges and one of the major challenge that he have to face is of competition factor.

           as it will be a small investment business so one would have to face some competition from the local players. apart from that if the starter starts his company where already a brand exists then it would have to face a huge competition from that branded company.

           sometimes working capital would also be a disadvantage for small businesses. as if the newly started company starts growing very rapidly due to change in market trend or for some other factor then it have to raise his fund or working capital to deal the change in market trend and fulfill customers wants. effects of services is one of the another major disadvantage that a starter may have to face.

          after selling its products or services one also have to provide after sales services in a better way to get higher customer retention. if it fails to provide good services then there would be a greater chances of losing customers which would be big disadvantage for the investor.

              so, these are some of the best small investment ideas for beginners in 2022, from which one can get good returns even in medium term.