No matter which investment plans you choose, remember that the most important thing is to start investing early and regularly.
New Delhi: Building a home is similar to investing for long-term financial security. You require a strong foundation (a safe investment strategy) in order to fulfil your long-term goals, which include having a roof over your head. Like a home, your investment plan should be tailored to your individual goals and available budget.
The following five investing techniques can help you establish a solid basis for financial security:
National Pension Scheme
Currently, one of India’s top high-return, low-risk investments is the National Pension System (NPS). The NPS is a long-term, retirement-focused savings programme that was established by the Indian government under the Ministry of Finance.
The plan involves very less danger because it is supported by the Indian government. In the meantime, the returns are based on the market and may range from 8% to 12% or more, as per a report in Bajaj Finance.
Public Provident Fund
The Public Provident Fund (PPF), a further alternative for long-term savings supported by the Indian government, is an easy and hassle-free high-return investment choice with low risk. You must make a minimum contribution under this plan of Rs 500 in a given fiscal year. A maximum contribution cap of 1.5 lakh rupees per fiscal year is also in place, the report said.
Gold
Since the beginning of time, gold has represented wealth. It still hasn’t lost its appeal as an investment choice that can outperform inflation. The yellow metal has traditionally been purchased in physical form as gold. However, it has drawbacks like additional manufacturing, designing, or storage costs. Through Mutual Funds and ETFs, you can purchase gold to get around these restrictions, a report in ET Money said.
Read More: EXPLAINED: The minimum investment required to invest in government-backed savings schemes
Unit-Linked Insurance Plans (ULIPs)
Unit-Linked Insurance Plans (ULIPs) combine life insurance and investing. To build long-term wealth, a portion of your premium is placed in asset types like bonds and stocks. Your premium also includes a portion for life insurance.
However, ULIPs have a history of having exorbitant fees. New ULIPs do not, however, carry such high charges. However, they have a lock-in period of 5 years, the report added.
Post Office Fix Deposits
Post offices provide FDs, like banks. You can deposit your money for brief-to-medium time periods with these investment options, often known as National Savings Time Deposits. Because they provide higher yields than banks, National Savings Time Deposits have an advantage over them. And that too with no added risk because the Indian government is supporting these programmes, the report also added.
