Investment Options in India for Salaried Person (Starting from FD to Property )

Investment - A Good Habit

What is Investment? “ Investment is Money spent in the hope of future benefit.”

Why should I Invest? “ To get Financial Freedom, For your family To start your own Business, Early retirement, Dream Holiday, Bike, Car, Bunglow For social work Social Status Wealth Creation etc…”There are many reason which can force you to invest your money.

How much amount I should Invest?

Before investment Please Accumulate some Cash amount from your salaries (e.g. starting from 50k to 2 lac) . This will help you in any emergency (e.g. Medical, excessive spending due to occasion etc…)

Now start your Investment

Investment =(Salary – Expenditure )

Calculate your Monthly Expenditure very precisely.

What are my investment Priority?

“ It depends on your future needs, desire & ambitions”. Put your immediate future need on top priority (e.g. home, your marriage, Vehicle, higher study, child education) which make your life smooth & tension free Now you can invest on your desire & ambitions (e.g. Dream holiday, farm house, business plan, For NGO etc…) which delight your self apart from daily happiness.

How many types of Investment plan?

Based on your need, desire & ambitions you can plan for short term, mid term & long term plan.For e.g. If you want car in next 2 years then investment for that comes under short term plan(short term plan for 1 to 3years)If you want home after 8 years then investment for that comes under mid term plan (mid term plan for 3 to 10 year)If you want to open restaurant after 15 years then investment that comes under mid term plan (long term plan > 10year)

What are my Investment Options?

EPF (Employees Provident Fund)

ROI8.5%

Tax Saving?YES

Lock in Period- NA -

Offered ByGovernment

of India

Online Debit/Credit Available?

YES

ROI deciding authority

EPFO India

http://www.epfindia.com/

Favorite Among Central & State Government Employees SME Employees Workers

Interest rate History

http://www.epfindia.com/

What are my Investment Options?ELSS (Equity Link Saving

Scheme)

ROI (3 years)8-10 %

Tax Saving?YES

Lock in Period

3 years

Offered ByBanks/Financial

Institutions/Insurance Company


YES

ROI deciding authorityEquity

Allocations

Top 5 ELSS scheme


NPS (National Pension Scheme)

ROI8 - 14%

Tax Saving?YES

Lock in Period

60 years

Offered ByPFRDS

(Government of INDIA)


YES


Fund Managers

http://en.wikipedia.org/wiki/National_Pension_Scheme

https://www.npscra.nsdl.co.in/



https://www.npscra.nsdl.co.in/


PPF (Public Provident Fund)

ROI8.7%

Tax Saving?YES

Lock in Period

15 years

Offered By

Banks


YES


Government of INDIA

Features

After 5 years you can withdraw 60% amount of PPF account Loan Facility AvailableBest option where you don’t have EPF account or your company is not eligible to offer EPF. Mid term investment option. Low interest rate.


Life Insurance(ULIP/Non ULIP)

ROI4 – 15%

Tax Saving?YES

Lock in Period

Policy term

Offered ByInsurance companies


YES


Predefined by

Policy Sum assured in Non ULIP

product & in ULIP product

based on NAV

Feature Best product to secure your future needs Sum assured amount is your final amount received after fixed term Fixed term starting from 3 year to 35 years Lots of income plan schemes are available in this options Retirement plans are also available in this categoryVast range of products offered by Insurance companies based on your risk Appetite.


ETF (Exchange Traded Fund)

ROI3 – 27%

Tax Saving?NO

Lock in Period

NA

Offered ByBanks/

Financial Institutions


YES


Gold /BSE/NSE

Features GOLD ETF is a best option to purchase GOLD virtually instead of physical. Good return on investment on GOLD ETF. Other ETF are based on BSE/NSE and foreign market which will give you a good return but among all ETFs, Gold ETF are best one. They are traded in stock market every day like equities. Offered by few banks & financial institutions. You can do SIP(Systematic Investment Plan) in this option


Equity (Share Market)

ROI1 – 100%

Tax Saving?NO

Lock in Period

NA

Offered by

NSE/BSE


YES


Corporate performance & future

policies

Features High risk option for investment where your money will grow 100 times in just few day or decrease 100 times in same period. Most of Indian companies are listed in NSE/BSE. Intraday/Delivery options available to purchase & sell the shares Invest in Top corporate/banks/companies in their sectors for long term will surely give you higher returns on your investment. Before opt for this option please consult your financial planner or check the companies health, government policies & previous preformance.


GOLD (Physical Metal)

ROI10-25%

Tax Saving?NO

Lock in Period

NA

Offered By

Banks/Jewellers


NO


Gold demand

Features Favorite among Indian people mostly women. It can be purchased as a GOLD Coin, Bar or jewelry. This option never hurt the Indian people in terms of ROI (Return of Investment) Loan available on jewelry. Lockers are also available in nearest bank for safety.


Fixed Deposit (Bank Linked)

ROI8 to 10%

Tax Saving?NO

Lock in Period

1 to 20 years

Offered By

Banks


YES


Predefined by Bank

http://www.moneycontrol.com/fixed-income/banks-deposits/

Features Traditional option of investment. Sometimes it called Term Deposit Offered by almost all banks & online transaction also available from your A/C. Pre mature withdraw can harm you in terms of charges. Good option to save you liquidity for Emergencies. Interest amount more than 10000 is taxable. To avoid tax ,bank will guide you. Secure option , no volatility, instant withdraw option, To know the interest rate of different banks go the link given below.




Fixed Deposit (Corporate Linked)

ROI10-13%

Tax Saving?NO

Lock in Period

1 – 10 years

Offered By

Corporate


YES

ROI deciding authority Predefined

byCorporate

http://www.moneycontrol.com/fixed-income/company-deposits/

Features Less popular than BANK FD/Term deposit Good return on Investment. Governed by concern Corporate so all decisions taken by them. Ratings based on their credit report has been given by CRISIL which helpful to choose the best corporate among all. Risky but worth if you want to earn higher returns than bank FD To know the Interest rates offered by different corporate than please click the link given below.





RD (Recurring Deposit)

ROI7-9%

Tax Saving?NO

Lock in PeriodMin. 6

month Max. no

limit

Offered By

Banks/Post


YES


Predefined based on your term

Features Popular among Indian people. It’s a traditional SIP. NO TDS deduction at the time of withdraw like Bank FD Auto debit & credit available from your bank A/C. Secure & safe investment however very low interest rates.

https://in.finance.yahoo.com/photos/best-banks-for-recurring-deposits-1370241980-slideshow/best-banks-for-recurring-deposits-photo-146157261.html






Mutual Fund

ROI1 to 65%

Tax Saving?YES/NO

Lock in Period

NA

Offered byAll Financial

&Non Financial Institution


YES

ROI deciding authorityBSE/NSE/

Commodities

Features Best option for all kind of investment plan (Short, Mid & Long) Best option against Equities as it balanced your risk when market crash Debt,Equity,Gold,IT,Pharma,Auto,BSE100,Bluchip,FMCG,Bank etc… funds are available where your money invested in different companies by Fund managers. Choose your risk appetite and choose funds accordingly. SIP is available. Some funds are tax savings & some are not. In current market scenario this investment option is one of the best. This all funds are performed under market risk.

What are my Investment Options?Property

(Residential/Commercial)

ROINo limit

Tax Saving?YES/NO

Lock in Period

NA

Offered ByBuilders

/Government


YES

ROI deciding authorityPlace of

property Features

High amount as a down payment require to avail this option. Initial survey of place of property required to avoid future problems. If you buy a home by taking loan than it’s a tax saving option but if you buy commercial property than it’s not tax saving option. Place of property is a big concern in this option. High returns definitely sure but you have to keep patience for that. Different kind of loans available for this options. Invest in this option if you have a future plan to open a business. Give your property on rent is a immediate ROI of this option.

“Never Test the Depth of the River with both feet”

So Start Investing your money wisely with given options & there are few more than this but keep in mind to balance your portfolio based on your needs, desire & ambitions

Investment Options in India for Salaried Person (Starting from FD to Property )

Economy & Finance

Transcript of Investment Options in India for Salaried Person (Starting from FD to Property )