Savings is a habitual practice among most of the Indians. It is carried out by generations that some part of your earnings is kept aside with the aim of safeguarding us in case of emergency. But as the time has passed, it is observed that only savings are not sufficient, and to fulfil the rising needs, we need to invest our money with regards to getting sizeable returns. Therefore, considering the need of investment, we aim to focus on four financial investment options that are easily available in India.
PPF / Public Provident Fund It is the most popular and safest investment scheme among middle class since long ago. PPF is a central government practice that offers fund security along with assured returns with tax exemption. Since it is the government scheme, the minimum amount of Rs.500 can be invested, whereas the maximum limit is Rs.1,50,000 in a financial year. In these plans, interest rates are quite higher than the bank fixed deposits and recurring services. Share Market (Equities) Equities is a major source of finance to any public company and enable some rights for investors towards the company assets. Investing in equity shares offers you high chances of building a sizeable corpus over the period, and the amount may rise to double or triple of your capital. Since the equities offer a considerable amount in terms of returns, there is always high risk associated with them as well. If your risk hunger is high, you can surely go with equity shares. Post Office Schemes If the need for investment is of short period, the Department of Post offers a great scheme to invest your money. Like PPF, the postal scheme of monthly income is also considered to be one of the safest options to invest your hard-earned money, since it offers considerably higher returns without any risk factor. You’ll get the returns in terms of fixed monthly income by the end of the month, at the rate of around 8.5% per year. Mutual Funds A mutual fund is another investment option which is becoming popular among the young Indian population since last few years. This type of investment that produces higher amount over a period, by allowing multiple investors to invest in different types of products such as bonds, equities, and other market-linked products. All you need to do is to capitalise on particular units that can further be measured based on Net Asset Value of the fund. Since these schemes are designed for long-term investment, the time needed to get sizeable returns is greater, and also the risks associated with the investment are high. These are the four basic and popular investment schemes available in India, among other schemes such as Gold investment, ULIPs, Real Estate Investment, and so on. Analyse your risk appetite and choose the appropriate one to invest your hard-earned money. After all, savings is incomplete without investment!
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April 2022
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