Do you know, Indians are biggest money savers in the world. In spite of being cash strapped, the saving from unorganized labour and informal saving techniques like curtailing miscellaneous spending, refraining from luxuries etc, amounts to mammoth 40-50 lakh crore INR per annum. This means we have a tendency to save 35- 40 per cent of our income. Hence saving money runs in our blood. Still we refrain from investing. The hype and hoopla created over risk has induced fear in the minds of common man. This fear has eclipsed the benefits of investment. After the surgical strike of demonetization, it’s important to learn the art of investing. If you are able to discern the right place and the right time of investment, you can easily double; triple or even quadruple your money. Rest assured you will never run out of money in your entire life. So instead of parking your saving in the closet, invest it wisely for smarter returns.
1. Bank – Saving Accounts or Fixed Deposits
At the stroke of midnight when the India was hit by demonetization, entire population thronged to the banks the very next day. ATMs went dry, bank employees were sweating their heart out to manage the sudden rush. Needless to mention, banks are safe heaven for white money. Even prior to this radical move a saving account was considered as the safest investment initiative with interest rate ranging from 4 to 7 percent. In India there is no dearth of good and reliable banks. Catastrophe like bank shut down is unheard of. So go ahead with a fixed deposit as the interest is higher. Moreover it will curtail your habit of overspending as you can withdraw the money only after the lock in period.
2. Government Bonds and Mutual Funds
As reliable as Bond007! When an investor offers his money as a loan to an entity, then it is called a bond. Though corporate offer it too but treasury bonds issued by the government are considered more safe and secure. It’s a low risk investment and the money is earned through fixed interest rate. Don’t get irked as initially, it might seem to be lesser valued compared to other investment options. Start investing in bonds now if you have kids. Allow the seed capital to grow. By the time your child is on the threshold of adulthood, encash it for his education and future.
3. Life Insurance
The most over heard term and surely your parents might have invested in this too. It’s a life cover; long term saving, life stage specific planning and effective tax saving device too. You can systematically save and plan returns for future. A unique investment option which can enable you to lead a life with dignity even after retirement. So get the double benefit of protection as well as saving. Additionally you can get tailor made offers for various life stages be it buying a new house, education of your children etc. So with loads of benefits, start investing and stay happy and contented till life. In fact even after life, as after you leave for your humble abode, your nominee does not need to beg, borrow or steal.
4. Gold and Silver
Every household in India has some amount of Lakshmi and Ganesh. Perhaps the Indians well understand the economy of the precious metals. The value of gold or silver soars when value of other investment drops. Even banks have started offering gold coins and gold loans looking at the golden attitude of the Indian mindset. So buy gold from banks and keep it safe then and there in the locker in the same branch. Now you can buy gold virtually too. If you are looking for short term investment then go ahead with the yellow metal. The gold remains largely unaffected with the ups and downs in the financial market. So face the uncertainties, inflation, or social unrest with the golden shield.
5. Public Provident Fund-PPF
Avail the duel benefits of investment and tax saving. One of the most trusted options as the scheme has full guarantee of the Central Government. As such there are no specific criteria for opening a PPF account. So open a PPF account, in any bank or post offices and enjoy the maximum return. However, this scheme does not cover NRIs as of now. The lock in period is quite long ensuring that the money grows incrementally. The unmatched rate of interest is the prime USP. Though this rate keeps fluctuating every fiscal but it has always remained highest compared to remaining schemes.
6. Real Estate
The big bang investment in real estate does not mean to shell out huge capital or pay EMIs till perpetuity. You need to be smart enough to anticipate the hike in price for the same property five years down the line. You may invest in a barren island, if you are sure that the main city is choked and the outskirts are the only option left to accommodate the ever increasing population. Moreover with demonetization the price of real estate has gone down giving you a reason to smile. You can avail loan easily and expect a lower rate of interest due to sudden splurge of liquidity in the banks. Many states have given nod to RERA and other such customer friendly regulations. So it’s mandatory on part of the builders to maintain transparency. No fear of hidden cost after booking or after payment of first installment. You will also get your property on time else the builder is liable to pay penalty.
Author- Shimoni Sinha