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Types Of Investment In India To Save Your Earnings

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What is the investment?

The investment is an item or asset accumulated by an individual for his or her goal of generating income. By looking at the economic outlook, the investment is obtaining goods that were not going to be consumed by the individual in the present, but it may be used in the future.

On the other hand, in finance, the assets are purchased with the idea that it will generate income for the future or be sold at a higher rate in the future. Investment is a better option to save your earnings since it is a safe area that will allow your earnings to grow.

When it is coupled Investment + Term Insurance becomes a greater area for your investment. The investor can earn their investment through three main things, namely:

  • Appreciation
  • Interest payments
  • Dividends

When the value of assets increases in the future, it is meant as appreciation. You can buy a bond and lend your money to the government or corporation, and further, they will pay back your money with an interest payment of the amount you lent. When you own a stock or equity, then the payments will be issued in the form of dividends.

 

Stunning reason to start investing today :

Investments help in the economy's growth because the investors buy and sell goods, and this will employ people. There are many reasons for investing money, and it varies from investor to investor. Some of the best reasons to invest your earning to generate more in the future are:

  • Money can be kept safe: Capitalization is one of the chief reasons investors invest their money.
  • To help money grow: While investing money can be generated into a sizable quantity over time.
  • The steady stream of income can be earned: You can earn a steady income source, which can be primary or secondary.
  • Minimizing the tax burden: You can save your tax by investing in ULIPs, PPF, ELSS, and you can get a deduction amount.
  • Savings for retirement: Retirement fund can be used effectively in your fall back golden years.
  • Meeting your financial goals: Short term and long term goals can be achieved by investing in the correct area.

The amazing option to invest in term insurance, and it is a life insurance policy. Investment + Term Insurance is the best option to invest in to achieve your future goals, and it will be very useful for you at the age of retirement.

 

Remarkable categories of investments in India :

Investors invest in both long term and short investments to generate short term or long term goals in their future lives. These funds will be used by the investors for their various life events or in an emergency.

The investors can invest their money in different investment areas, but it is important to select a safe area for your capital. The stunning area for investors is Investment + Term Insurance . Some of the best investment plans include :

  • Public Provident Fund
  • Post office savings
  • Sovereign Gold Bonds
  • Bank Fixed Deposits or Term Deposit
  • Recurring Bank Deposit Saving Scheme
  • Life Insurance Plans
  • ELSS (Equity Linked Savings Scheme)
  • Mutual Funds
  • Stocks
 

Public Provident Fund :

One of the best and preferred options of investing in Public Provident Fund, and it is a long term debt investment which was issued by the government of India. The tenure of PPF was 15 years, but the investor withdrew the fund value of 50% after five years, and the interest rate was decided by the government of India.

The beneficial thing about PPF is that you can claim for deduction from your income tax when filing your returns, and the returns are not taxable.

 

Post Office Savings :

Another notable safest investment for the long term is post office savings. This scheme will be ideal for employees, and they can pay a fixed amount of deposit every month. Even the people who gain low income can also invest in this post office scheme. Some of the post offices saving options are listed below.

  • Post Office Recurring Deposits
  • Post Office Monthly Income Scheme
  • Post Office Time Deposits
  • National Savings Scheme
  • National Savings Certificates
 

Sovereign Gold Bonds :

Gold was always considered as an attractive option of investment in India. However, keeping physical gold can be burdensome and risky. Sovereign gold bonds are one of the smarter alternatives for investment in physical gold.

These gold bonds are distributed by the RBI, and it has been backed by the government of India. The bondholders will enjoy capital appreciation when every time there is an increase in the price of gold.

 

Bank Fixed Deposits or Term Deposits :

This is one of the best options for investing and considered the oldest and safest in the country. The term deposit scheme is depositing a certain amount of money in the bank, and you will earn the interest for your deposited amount. These investments are ideal for long term investments. At the age of retirement, it will be very beneficial for investors to gain a regular income.

 

Recurring Bank Deposit Saving Scheme :

This is also another good investment plan in India. In this scheme, you should deposit a specific sum of money in monthly contributions, and you will receive a fixed rate of interest every month. This investment will have a fixed contract, and at the end of the contract, the investor will earn the principal amount and interest earned.

 

Life Insurance Plans :

It is considered one of the major investing options available in India. This awareness of purchasing an Investment + Term Insurance is growing in India, and it is a long term investment.

Life insurance policies are best suited for people with families. The amount earned from life insurance can be used for various purposes: business expansion, child's education, or children's marriage. But before applying for life insurance, you should know the different types of insurance plans available in India.

 

Individual Health Insurance policy :

  • Family Floater Health Insurance
  • Critical illness Health Insurance policy
  • Senior citizen Health Insurance
 

Equity Linked Savings Scheme :

In past years this scheme has gained great popularity in the Indian financial market. Equity Linked Savings Scheme is one of the mutual fund investment plans that invest in stocks and equity-related stocks. These schemes have a lock period, and it will be beneficial for tax deductions.

 

Investing in Mutual Funds :

A mutual fund is another famous investment plan available in India, and this was becoming popular in the last few years. Lump-sum investments are not required for investing in mutual funds. It is a little safer to invest when compared to stocks.

The banks and financial companies provide mutual fund investment products. In this type of investment, there is a possibility of fetching a high amount of returns, and it depends on the market.

 

Capitalizing in Stocks:

Stock investment is a beneficial option in India. You can invest in equity shares and fetch 26.5 percent returns in 5 years. Even if you invested for a longer period, it will reach higher returns.

The Indian financial market is loaded with numerous investment plans in which you can fetch a lot of higher returns, and you can also save earning from paying a massive amount of income tax and also gain a deduction amount from this.
Investing in Investment + Term Insurance provides you lots of saving for yourself and also for your generation.

Disclaimer:

The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.

Consult with your financial advisor before making any decisions on insurance purchase.

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time

Suggested Plans

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