People work hundreds of hours a year to earn money to provide their families with bread and butter. Money motivates people to work so that they can get what they want or need; it not just fulfils the basic needs, but if you desire luxury, it is the money that gets you all you desire.
All the young folks working out there, are you planning to earn and store your money wishing to live a stress-free life? Working hours to make thousands, desiring a stable life but is that enough? Will earning be enough to provide what you need? What if you meet with an emergency? What are your plans after retirement?
Saving and investing money is the answer. This article shall give you a brief on how to invest your money for the future.
Fixed Deposits
Fixed deposits are beneficial if you want risk-free investments with guaranteed returns. Also, it is a liquid investment. You can break your FD when required. However, you might have to pay some penalty for premature withdrawals.
Public Provident Fund (PPF)
The PPF is a long-term investment option offered by the Indian government and can be purchased at post offices and banks. It provides several benefits, including tax breaks and a fixed interest rate. The PPF has 15-year tenure, and you can make withdrawals from the seventh year. You can use the money invested in a PPF account for various purposes, such as buying a house or investing in a business. The principal invested, the interest, and the maturity earned on a Public Provident Fund account is exempted from income tax. The interest rate is based on government bond yields and is revised every quarter.
NPS
The National Pension Scheme is a retirement savings scheme introduced by the Government of India. The scheme was launched on 1st January 2004, for Indians between the ages of 18 and 60 years can avail of this scheme. NPS offers an opportunity to save for one’s retirement in a tax-efficient manner and provides withdrawal options and annuity benefits.
Mutual Funds
Equity mutual funds can be a great option when it comes to investing for the future. These invest in stocks or company shares; they are typically more volatile than other mutual funds but have the potential to provide higher returns. An equity mutual fund diversifies your portfolio and can provide you with the potential for long-term growth. Equity mutual funds may be the right choice if you’re looking for an investment to reach your long-term financial goals. And investing in mutual funds through SIPs is the easiest way.
SIP
Systematic Investment Plan(SIP) is a facility offered by mutual funds that allow individuals to invest a specific sum at regular intervals, such as monthly.
SIP is an ideal way to invest in future. It helps you to save regularly and invest in a disciplined manner. With a SIP, you can invest in equity mutual funds and enjoy the benefits of compounding.
Exchange Traded Funds
Investing in exchange-traded funds has become increasingly popular in recent years. These are similar to mutual funds and provide exposure to a broad range of assets, including stocks, bonds, and commodities, which can help to diversify a portfolio. In India, ETFs are typically passive funds that track the underlying index, such as Nifty 50 or Sensex.
Conclusion
Investing money is a great way to secure your financial future. You can soon make your way to a bright financial future with proper planning and patience. While there are multiple ways to invest your money, it is essential to research and find an investment that suits your needs. Make goals, strategize and begin investing for your future. Because if you don’t, who else will?
