INSUBCONTINENT EXCLUSIVE:
The tip to successful investment is planning and long-term commitment, say experts.With different investment options available in the
However, one should pick an option as per his/her risk appetite, investment horizon, age and financial goals, say experts
It is always better to invest with a long-term perspective, they say
From fixed income instruments like fixed deposits (FDs) and recurring deposits (RDs) as well as mutual funds - there are various options
which can help in wealth creation.Points to keep in mind before planning your investment:The tip to successful investment is planning and
long-term commitment, say experts
Start small but be consistent with your investments."According to Dr Joseph Thomas, head of research, Emkay Wealth Management, the investor
and also broad psychological disposition towards markets, products and their performance," he said.In case of women investors, an additional
Broking, "Most women take a few years off when their children are growing up
So, when you start your financial planning, make provisions for this period, when you will not be working," he said.Here are 10 investment
options that you can consider:1
Fixed deposits (FDs): Fixed deposits (FDs) are fixed income instruments that guarantee returns
According to experts, FDs are probably the most popular savings tool
"If you are completely intolerant to taking risks, FDs should probably be your first choice of investment," said Mr Chandani of
BankBazaar.According to Mr Bhardwaj of Angel Broking, investors can look at long term bank deposits in bank FDs and post offices with a
maturity of above five years
"These deposits have a rate of interest that is at par with the normal bank FD rates
But such deposits qualify for Section 80C exemption, although the interest is taxable," he said.2
All major financial institutions across the country offer the facility of opening an RD account
An investor can choose from a variety of terms - or maturity period to set up an RD account3
Public provident fund (PPF): PPF account offers an interest at the rate of 8 per cent and comes with a lock-in period of 15 years
According to Mr Chandani, PPF is one of the most popular investment vehicles majorly because of two fundamental reasons
"Firstly, the investment qualifies for Section 80C of tax exemption
Mutual funds:Mutual funds are one of the best options as the fund is managed by experts, who have knowledge about the equity markets
According to Priti Rathi Gupta, MD of Anand Rathi and founder of LXME, investment in mutual funds (MFs) gives a balanced portfolio with
equity and debt schemes with a much higher return
small with SIPs (Systematic Investment Plans)
"For the conservative portion, investors can also consider FMPs with 3-year lock in period which can be structured for double indexation
with a view to enhance post-tax yields," said Mr Bhardwaj of Angel Broking.6
National Pension System (NPS): NPS, introduced by the government, allows individuals to contribute towards building a pension corpus
throughout their working life
At the time of retirement, NPS subscribers can withdraw up to 60 per cent of corpus in lump sum, while the remaining 40 per cent of corpus
Insurance policies: One should also consider buying life insurance and health insurance policies for self and family
"These insurance products help in planning for the future and acts against exigencies, a very important component of our term financial
planning that we tend to ignore," said Dr Thomas of Emkay Wealth Management."One can take low-cost medical cover and also get assets and
liabilities covered by insurance, preferably through term policies
"Invest in different stocks instead of glueing to one single stock
"Seeing the rising gold prices, it is suitable to have 10-15 per cent allocation given towards gold or gold funds," said Dinesh Rohira,
founder and CEO at 5nance.com
Instead of buying physical gold, one can also invest in gold bonds as it pays a fixed interest.10
Investment in bonds: Investments into good quality bonds and debentures also ensure fixed returns and thereby facilitate greater stability
to the portfolio performance, according to financial experts.
