Financial freedom through strategic investments
Saving money from the monthly income simply isn’t enough to meet the increasing desires and needs of today’s individual. That, coupled with the rising costs, makes it imperative to invest money in some profitable avenue to generate good returns.
Depending on your financial requirements and needs, you should investigate the options available in the market, be it stocks, insurance, bonds, or gold. The reasons you should invest your money may depend on your current circumstances, but the result should be a solid return on your investments.
Bajaj Finserv, a leading NBFC, offers Gold Loans with lucrative features to fund your next gold investment.
Waiting for the Right Time to Invest?
As a first-time investor, you may be unaware of the workings of the market and the appropriate time to invest. Don’t worry about when to invest money; always think about how to invest it. Since each investment comes with its own set of risks and benefits, there is never a “right time” in the investment market.
A good approach to investing is to categorize your goals into small, medium, and long-term. This will map out your options and help you make an easy decision when choosing your investments.
A Look at Various Investment Options in India
Here are a few investment options that offer decent returns and are exempt from tax deductions under section 80C of the Income Tax Act.
Post Office Savings Schemes
Due to the convenient accessibility of post offices across India, you can easily invest in any of the saving schemes provided by them.
- Public Provident Fund (PPF): The minimum amount you can invest is INR 500 and the maximum is INR 1.5 lakhs. With a PPF, you get guaranteed returns at the end of every fiscal year. Plus, the high-interest rate of 8.7% is an attractive incentive.
- National Savings Certificate (NSC): In this scheme, there is no limit to the maximum amount that you can invest. The rate of interest lies at 8.8% and the scheme has a lock-in period of 5 years.
- Senior Citizens Savings Scheme (SCSS): This is an ideal scheme if you are above 60 years of age. Early retirees who are 55 years old and less than 60 years old can also apply. The interest rate stands at 9.3% per annum.
- There are also Monthly Income Schemes (MIS), recurring deposits, and time deposit accounts that offer some of the best saving plans in India.
Other Great Investment Avenues
Apart from the plans introduced by the Government of India, there are other tax saving investments and schemes that offer good returns. These include:
- Mutual Funds: A mutual fund is one of the best ways you can invest and manage your finances. Here, your investment is channelled over various sectors with varying risks. Thus, you are assured of minimal risk and better returns. Bajaj Finserv provides an easy option for you to apply for mutual funds online. They offer features like diversification and professionally managed portfolios.
- Real Estate: This is the perfect long-term investment option that assures you of a relatively high return when compared to others. The high return is also the result of a high initial investment.
- Insurance: Insurance against your life, health, home, car etc., not only aids your finances but is also useful during emergencies and illnesses. The profits are risk-free and tax deductible.
- Stocks: If you are a risk-taker, then you can invest in a number of stock options. Returns are not assured every time, but it is an ideal way to generate higher-than-usual profits.
- Gold: Gold is an investment that never goes out-of-date. Though gold prices are falling, its demand remains constant.
- Fixed deposits: A fixed deposit plan is probably one of the easiest ways to save money and accrue interest over a period of time. Tax benefits aside, FDs are a risk-free investment that will also provide a regular income. This is especially useful if you are looking for quick returns. Bajaj Finserv offers fixed deposits with amazing features like online account access and auto-credit of the maturity amount.
These are some of the top investment plans in India, so make sure you look into each before investing you money. It is always better to be well-informed of the economy and its impact on the current market before you decide on anything.