It is important to save and invest the saved money in the right place. If you have invested money in such a place, the returns from which are less than the inflation rate, then it means that you have not invested your money in the right place.
1. Mutual Fund
You can invest in Mutual Fund schemes according to your long-term, financial goals, and your ability to take risks. The trend of investing in Mutual Fund has increased over the years. If you want to invest every month, then you can invest in Mutual Fund with the help of a Systematic Investment Plan or (SIP). SIP is a good option for investing in Mutual Funds with less money. Whether you have less or more money to invest, you must seek the help of a financial advisor to invest in a Mutual Fund. Financial advisors help you choose the right mutual fund according to your financial goals, investment duration, and risk appetite.
2. Invest in direct shares -
If you have time to do research and read the balance sheet of the companies and know how to extract information from them, then you can invest in shares directly. If you can invest in stocks of companies with good growth, then you can earn money in a short time. Only when you have a piece of good knowledge about the stock market, you should invest directly in the shares of companies. The ability to do a technical and fundamental analysis of the stock chart can help you earn the desired returns in investment.
Public Provident Fund (PPF) has been a great investment option for those people who do not want to take risks for a long time. In this, returns are given according to the pre-determined rate. If you invest in PPF, then you can avail of tax exemption under Section 80C of the Income Tax Act for investments up to Rs 1.5 lakh per annum. If you want to invest in PPF, then you can open a PPF account in any bank or post office near you. Your investment in PPF is locked for 15 years.
4. FD of companies
If you want to earn more return on your investment than bank FD, then you can invest in corporate FD. Investors generally invest in fixed deposits (FD) of companies in search of assured returns and safe options due to stock market turmoil. The higher the FD rating, the lower the risk. This is why distributors advise investors to place bets on deposits with AAA or AA + rating.
If you want to earn a better return on your investment and also want the option of tax savings, then you can invest in Equity Linked Savings Scheme (ELSS). Financial advisors say that investing in ELSS is the best option to meet your long-term financial goals. ELSS is the equity schemes of mutual funds, whose majority of the funds are invested in shares. This is the reason why investment advisors want investors to invest and invest in equity mutual funds.
If you do not want to take the risk, then Bond can prove to be a better option for you. Investors' interest in bonds is also increasing because the returns from many types of bonds are tax-free. They have less risk and volatility. However, in the period of the boom of the domestic stock market, the brightness of the bond fades.
If you want a fixed amount every month for your household expenses by investing, then Post Office Monthly Income Scheme (POMIS) is the right option for you. Monthly Income Scheme (MIS or MIS) is an investment scheme run under the Union Ministry of Communications. The Post Office Monthly Income Scheme (POMIS) offers 7.5 percent interest annually. Your capital is safe in this. Also, you get better returns than debt instruments. The Post Office Monthly Income Scheme (POMIS) gives higher returns than FD.