You have always heard that your Earnings - Expenses = Savings, But as per Sir Warren Buffet, It has to be like this way "Earnings - Savings = Expenses".
Youth, mostly spend their money on Expenses only i.e Expensive Smart Phones, Vehicles, Gadgets, Restaurants & soon they go broke financially.
In Investment, Whatever return we got on has a positive relation with Risk, In Simple words, More the Risk More Returns you will get & vice versa.
Below are the few options you should try for an Investment
PPF - Public Provident Fund
It is considered one of the best & secured long-term investment plans in India, Addition to this it's Tax-Free(EEE) also fully guaranteed by the Central Government of India.
You can deposit from 5K to 15K Per Year in a single installment or in monthly up to 12 installments. Min Lock-in Period is 15 years, but you can extend beyond it also, once maturity reaches.
Interest Rate: 8 to 9 %
Mutual Funds
A Mutual Fund is usually run by an asset management company(AMC) that brings together a group of people and invests their money in stocks, bonds, and other securities.
Mutual Funds also has one of the lowest lock-in periods i.e. 3 years for savings mutual funds as compared to 5 years of FD, ULIP's & PPF.
The biggest advantage of investing through a mutual fund is that it gives small investors access to professionally-managed, diversified portfolios of equities, bonds, and other securities, which would be quite difficult to create with a small amount of capital.
National Pension Scheme
A Person can invest during the period of his/ her employment at regular intervals.
Furthermore, it allows an investor to withdraw a percentage of the accumulated amount after retirement and the rest is invested in annuity.
The investor receives the remaining amount monthly as a pension post-retirement. Moreover, investment in NPS gives investors tax benefits up to Rs 1.5 lakh under section 80C and up to Rs 50,000 under section 80CCD.
IPO(Initial Public Offering)
It is the offering that the new companies invite the public, wherein they can sell the shares of the company before it gets listed on the stock market. Initially, the rates are low, so you should keep an eye on the prospective companies that might want to have their listings on the stock market soon.
Later on, once it gets listed the price of the share gets fluctuated, depending upon many conditions. IPO's has their set of risks associated that needs to be figured before you decide to invest.
ULIP(Unit Linked Insurance Plan)
One of the best investment options in India for long-term investors, It offers dual benefits of insurance & investment along with tax exemption.
But it arrives with the lockin period of 3-5 years. In this plan, part of the premium is used for insurance coverage, whereas the remaining premium is invested in market-linked instruments such as shares, bonds, etc.
Direct Equity/Share Purchase
Investing in share for the short term is risky, but if you plan for the long term(10-15) with proper analysis of share, it will be beneficial for you.
To invest in shares you will need a Demat Account, which nowadays you can easily open freely from firms such as Zerodha, upstox etc.
You can expect around 10-15% of return from the share market per year if you had invested with proper analysis.
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