As You Sow, So You Reap.
The key to a financially secured life lies in sowing seeds early. We needs to focus on building a robust corpus right from a young age.
There are various options available in the market that can help in generating wealth and increasing your income.
Check Out Some Best Investment Options Below, recommended by Top Experts:
Direct equity
A person, who maintain the balance between risk and return should invest in direct equities this year.
Many experts saw a big correction in 2020 and then a big recovery in equities.
It has been a massive value creator for individual investors and a proven way to create and accumulate wealth. So, investors should regularly invest and be disciplined about increasing the investments as their savings go up.
Exchange-traded funds or ETFs
Exchange-traded funds or ETFs, types of investment funds, are similar in many ways to mutual funds, except that ETFs are bought and sold throughout the day on stock exchanges. ETFs involve a collection of securities - such as stocks - that often track an underlying index.
Passive investors should stay balanced between a large-cap index ETF and a gold ETF for the coming year to have a sufficient hedge in case equities start heading south at some point.
Fixed deposits (FDs) - Risk Free Investment
FDs, also known as term deposits, are one of the best options for people looking for an assured income as they are risk-free. In FDs, a lump sum amount is locked-in for a specific period. Investors can choose tenure usually in the range of 7 days to 10 years.
However, investors should be careful while choosing FDs as banks have recently announced reductions in rates.
Also be informed about the taxes you have to pay every year on your FDs.
Public Provident Fund (PPF)
Risk Free with Tax Saving Benefits.
The Public Provident Fund (PPF) is a post office savings scheme in India. PPF is an ideal option for investors any day because it offers multiple benefits such as low-risk appetite, tax benefits and a steady interest on the money deposited.
In PPF, the maturity amount and the overall interest earned during the period of investment are tax-free.
Periodic investment in PPF for a long-term can do the trick with the power of compounding.
National Pension System (NPS)
NPS, introduced by the government, allows individuals to contribute towards building a pension corpus throughout their working life. A subscriber can also continue to contribute to NPS account beyond retirement (up to 70 years). It allows one to develop a significant fund for the second innings of life, say experts.
Disclaimer: The views and investment tips expressed here are just basics and not that of the website or its management. We advises users to check with certified experts before taking any investment decisions.
