# Are you a start-up entrepreneur? Here are 5 financial assets to invest in


You are reading Entrepreneur India, an international Entrepreneur Media franchise.

Entrepreneurship is a very risky game, especially during the early stages when you begin to scale the idea into a real business.

stock chart

It is also during these times that the founders often ignore exhausting personal investments to build their dream empire. However, just because you are an entrepreneur doesn’t mean you will truly be successful.

When building the business of their dreams, entrepreneurs pay very little attention to their personal finances or avenues of wealth creation. And luckily, if the business goes down, your investments will come to your rescue.

Entrepreneur India shares four financial assets that every start-up entrepreneur should invest in while they are busy building the next unicorn:

Mutual fund

Wealth managers always say “Sahi Hai Mutual Fund”. There are hundreds of funds you can choose from based on your risk appetite and get a good return.

Additionally, Nitin Agarwal, CEO of Orowealth, shares that investing in mutual funds gives you high liquidity, diversification and a tax advantage.

“As an entrepreneur, mutual funds as financial assets can be very important because they give you the benefits mentioned above as well as an added layer of professional fund management,” he said. note.

Exchange traded funds

ETFs are passively managed funds and are a bit different from actively managed funds such as mutual funds which generally aim to outperform indices.

Sanjeev Sharma, co-founder of Sqrrl.in, says ETFs can be easily bought or sold on the stock exchange and they help spread investment risk across a number of securities, thereby reducing specific equity risk.

“Since entrepreneurs don’t have a lot of time to waste on learning about stocks, it is recommended that they invest in ETFs. They can just invest a small amount in a sector ETF and take advantage of sector growth, ”he added.

Gold Fund

We don’t have to say how much Indians love gold, but as an entrepreneur you don’t have to invest in the metal itself. Instead, you can invest in gold funds.

“Even during the economic downturn and market volatility, gold has been able to deliver positive returns, which is commendable. Other than that, gold funds come with easy liquidity options and the ability to start small, which for entrepreneurs could be ideal. This, together with the fact that gold funds are also a good option for diversifying portfolios, makes gold funds a very reliable and attractive option for entrepreneurs, ”added Sharma.

Keyman Insurance

While many of us think of insurance as an expense, in reality it is a financial asset and every individual should invest in it. Having said that, key man insurance is not for your personal benefit, rather it is used to float the business because you are the boss here.

Dinesh Rohira, Founder and CEO of 5nance.com believes that it is of the utmost importance to play a balancing role between building a strong network for oneself and ensuring the inherent risk of dependency of a key person in the business. Investing in a financial instrument is easy as the results are clear. At the same time, it is equally important to safeguard the interests of stakeholders.

“Whether it is a risk of any kind anticipated in the company, the survival of the entity is a key objective. A good investment that every entrepreneur should guarantee is to take out key man insurance that protects a potential risk in the event of an eventuality of key employees in the organization, as the disappearance of a key person in a small organization can ultimately lead to the loss of a key person in a small organization. death of the established business. business, ”he suggested.


Comments are closed.