Investment is a calculated decision to put your hard-earned funds to work, rather than let them stagnate in your bank account. With the right strategy, it can help you outpace inflation, secure your financial aspirations and create freedom in your life.

Different investment options offer varying levels of risk. You must understand what kind of risks you can take and align them with your financial goals, to pick suitable investments.

You can start by exploring the many mainstream investment options, such as deposits, stocks, bonds, real estate, gold and more. Each has its own benefits and drawbacks.

For example, deposit accounts earn interest, whereas stocks represent a stake, or share, in a public company and are expected to generate returns through income generation or capital appreciation.

Another option is to invest via mutual funds or unit trusts, where your money is pooled with other investors. This allows you to diversify your investment portfolio and reduce your exposure to market fluctuations.

It’s also important to consider liquidity restrictions when choosing your investments, as some may have minimum and maximum withdrawal limits. You should also know the tax implications of your investments, including short- and long-term capital gains taxes. Regularly reviewing your investments and making adjustments as needed is a good way to keep your financial goals on track.