General Articles

3 You were born to lead a life of choice

Do not let lack of financial support snatch your dreams. Make timely investments to have a regular stream of income for your future.

Every person has dreams for themselves and their loved ones. We wish to reach the pinnacle of success in our careers, we wish to have abundant money to make our loved ones’ dreams come true, and we want to retire peacefully. But how many of us make the right provisions to achieve these dreams?

All it takes is a series of clever investments aimed at creating periodic wealth to achieve all of life’s milestones. You could try the following investment options:

1 Fixed deposit. Indians have traditionally gravitated towards the fixed deposit as a safe investment option. It is a good option for investors with a low risk appetite and who have surplus funds to put away. The initial capital matures over the deposit’s tenure and is liable for interest on the sum, on maturity. It is a good option for short term needs.

2 Mutual funds. Investors looking for good returns with a diversified portfolio can certainly consider investing in equity mutual funds. Equity mutual funds offer good long term growth prospects, with risk mitigation and investment in the strongest companies associated with the equity markets. You can stay invested for a period of five years to start seeing the benefits of this investment option. Plus, the best mutual funds in India account for liquidity risk, price risk and quality risk.

3 Life insurance plans. Taking a life insurance plan has become a necessary task in today’s uncertain times. It is not a conventional investment option, but it is an essential tool to ensure that your loved ones are financially secure in your absence. The life plan provides maturity benefits and death benefits (if it is an endowment policy) and death benefit only in the case of term insurance, apart from tax benefits every year.

4 Public Provident Fund (PPF). After fixed deposits, the PPF has been another go-to investment destination for most Indians. It offers a high rate of interest (8% to 9%, adjusted by the Government every year) and it can be started with as little as Rs 500. You can stay invested in it by paying minimum Rs 500 per year, and maximum Rs 10,00,000 annually. The PPF matures in 15 years, but you can effect partial withdrawals after the lock-in period of seven years is complete.

5 Post Office Savings Schemes (POSS). The POSS also offers high returns for low investment, and the maturity amount is a sizeable one. It is usually recommended for those looking to create a retirement fund; it provides monthly income and the Government does not charge TDS on it. In India, you can choose between such POSS options like Kisan Vikas Patra, National Savings Certificate, and Monthly Income Scheme.

Keyword: Investment options