What are the best Investment options for salaried person…!!
An investor always looks for various investment options to invest. But these investment options, mostly depend upon the income slab of an investor. The bigger the income slab, then larger the investment option will be. But in every economy or any country the large chunk of the population belongs to the middle class or the salaried class. Salaried and middle class have different requirements compared to the other class of society. On a limited budget, they have to fulfil their personal and daily expenses as well as protect their financial future. A salaried person always looks for the returns that offers him safety, along with tax benefits and decent returns. As most of the salaried investors are interested in investment product that can offer a combination of three. Here’s a list of the investment options for the investor:
- Mutual fund:
Mutual Fund is one of the best investments for a salaried person. It not only introduces a person to capital market but also makes them a disciplined investor. A salaried person can invest either in the debt mutual fund or equity mutual fund, depending upon their risk appetite, investing goals and the expected returns. In case if the investor seeks higher growth, then it’s better to invest in equity mutual fund and if the investor wants less risk and moderate return then it’s better to invest in debt mutual fund. An ideal way of investing in the mutual fund is through SIP.
- Fixed Deposit:
Fixed deposit is one of the most popular investment tools amongst the Indian Middle class. In this case, a fixed amount of money is deposited in the bank for a fixed tenure with a fixed rate agreed upon investment. Now, an investor can get the returns after a period, including the compound interest agreed upon.
- National Saving Certificate:
National Saving certificate is a fixed income investment scheme with a lock-in period of 5 years, offering an interest of 8% compounded annually. Just like PPF, NSC rates are reviewed every quarter.
- ULIP (Unit Linked Insurance Plan)
ULIP is a mix of market linked investment and life insurance. It is an ideal scheme for investors who want to secure their lives as well as participate in the market. A part of the premium goes towards insuring your life, while the other part is invested in stocks, bonds and other market instruments.
- Voluntary Provident Fund:
VPF is basically an extension of the EPF, yielding the same interest rate. Investor apart from making a mandatory investment towards EPF, can also choose to invest in the VPF. Whatever be the interest earned on it, is tax exempt provided the employee continues to be in service for more than 5 years.
- RBI Taxable Bonds:
It’s one of the alternatives for those salaried people who want full capital protection as well as reasonable interest on their capital. The RBI currently provides an interest rate of 7.75 percent with having a maturity period of seven years. But it does come with certain drawbacks as neither the investment fetches tax deduction nor the interest earned is tax free.
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.