Welcome to Fintastic Females, where we embark on a journey to financial freedom. I’m Kalyani, and I’m Rupali, your friendly finance experts. In this episode, we dive into the world of investing and help you understand where to start. While we aren’t financial advisors, we aim to break down complex concepts, cut through the noise, and equip you with knowledge to have informed conversations with your financial advisor. Our core focus is on freedom of choice and empowering you to plan your financial route. Let’s begin by exploring real assets, such as real estate, commodities like gold, and luxury items like art and watches. These tangible assets can hold value over time. However, it’s essential to evaluate their practicality and potential risks.

Moving on to financial assets, banks offer various investment options. Cash is the most accessible, but it’s important to note that holding too much cash can lead to loss of value due to inflation. While banks provide nominal interest rates, these may not match the rate of inflation, resulting in negative real interest. We emphasize the importance of making your cash work for you rather than leaving it idle.

Next, we delve into stocks and bonds. Stocks allow you to own a share of a company and can be a safe long-term investment or a vehicle for tactical trading. Bonds, on the other hand, involve lending money to companies or governments. Each investment option has its own considerations and can be influenced by factors such as market trends, economic conditions, and personal preferences.

To mitigate risks and diversify your investments, you can explore mutual funds, index funds, and exchange-traded funds (ETFs). These vehicles offer exposure to a basket of stocks or bonds, allowing you to spread your risk and invest in a broader range of companies or sectors. However, it’s important to understand that these options come with fees and require you to trust the fund managers.

In conclusion, investing involves a range of asset classes and strategies. It’s crucial to align your investments with your financial goals and risk tolerance. By gaining knowledge and understanding your options, you can make informed decisions and work towards your financial freedom. Remember, we’re here to guide you on this exciting journey.