The current world is obsessed with rapid and instant gratification. Catering to the changing demands and varying needs of investors, financial organizations have schemed multiple types of savings plans. Depending on the requirements, financial targets, interests, and market conditions, you can decide on your investment scheme, maintaining a healthy and secured financial portfolio.
To fulfill long-term financial goals, direct equity investment is considered to be one of the best. Although the stock market can multiply your wealth significantly, you must remember that these are subject to market risks. You must possess a sound knowledge of the current market conditions to make proper investments at the right time.
Equity mutual funds
One of the best ways to reduce the tension of market volatility is to take professional help while diversifying your entire investments across several stocks. An equity mutual fund is ideal in this respect. Your finances get invested in promising stocks after careful research. There are varieties of equity MFs like large-cap, mid-cap, small-cap, Flexi-cap, and ELSS.
This is one of the most popular and promising investment options among average Indians. However, property investments come with their own risks and limitations.
Since the ancient era, gold has been considered a precious symbol of wealth. However, investing in gold ornaments, come with designing and making costs, resulting in excess expenditure. However, you can invest in ETF to avoid such shortcomings.
Small saving schemes
The government intervention has resulted in the introduction of several small saving schemes like PPF or Public Provident Fund, NPS or National Pension Scheme, and ULIPs or Unit-linked Savings Plans. Among these, ULIPs are especially noted for their extreme charges.
National Savings Certificate
NSC is a post-office-based savings scheme, with government backing. The working strategy is similar to a 5-year FD and offers 6.8% interest annually.
Post Office Time Deposit
Similar to banks, post offices too offer FDs, termed as Post Office Time Deposit. You can keep your investment for 1-5 years, and it offers comparatively better returns than commercial banks.
Mid-term debt funds
There are 16 varieties of debt funds, classified on the basis of risk and returns. There are three types of debt funds: corporate bond funds, short-duration funds, and banking and PSU funds.
They tend to invest in multiple asset classes. The most popular combination of these asset classes is debt and equities. However, certain hybrid funds even invest in real estate or gold.
Bank Fixed Deposits
This is one of the most popular investment options in India, as they involve minimum risk and assured returns on maturity. However, post-tax returns are not quite inflation-proof. Moreover, premature withdrawal is liable to a penalty.
Short-term debt funds
Among the short-term debt funds, we can include, money market funds, ultra-short duration funds, and liquid funds. These are quite low-risk products, offering satisfactory returns.
RD investment inculcates a disciplined spending habit as it requires a regular investment of a fixed amount every month. You can cut down unnecessary expenses and grow your wealth to fulfill a specific target after a certain period. You can view the prospects of your investment through the RD calculator. A digital RD calculator works automatically to show the final results once you enter the relevant details. You can simply type ‘RD calculator’ and get easy access to avail of its benefits.
This discussion throws light on the good and popular savings schemes of India in 2022. Each plan comes with its individual set of pros and cons. You have to choose carefully depending on your requirements.