An investor can choose innumerable investment options depending upon
his risk profile. Here we elucidate some of the options.
Fixed Deposit- If investor
is conservative then he can choose this option. It is also known as “low risk
low return”. The major drawback is that the returns can be completely wiped out
owing to spiraling inflation.
Bonds- Bonds can be
categorized into two parts
* Corporate Bond- It is meant for all
those investors whose risk appetite is great i.e. for aggressive investors. The
returns proffered are quite high simultaneously risk is quite high too. In case
the company goes bankrupt investor won’t receive even his principal amount.
* Govt Bond- It is safe and secure mode
of investing. They offer assured returns and standard income.
Equity- The other major
source of investment is stock market. It is bit risky if you have shorter time
horizon but if you can keep your investment for longer period of time then it
will provide you assured returns. Investors can invest in different companies
through equity mutual funds, SIP etc which is managed by professionals.
Insurance- Insurance is the
best way to indemnify your life and assets. Many insurance options are
available in market like health insurance, home insurance, life insurance, car
insurance etc.
NSC- National Saving
Certificate is secured govt investment with lock in period of 7 years. The
investor is entitled to interest which is forfeited two times a year. Moreover,
NSC falls under Section 80C of IT act and profit accrued is valid for tax
deduction.
PPF- Investment in PPF is
supported by govt. It also falls under category of Section 80C of income tax
act so investors can gain from income tax deduction. The rate of interest is
evaluated yearly and has lock in tenure of 15 years.
Real Estate- Real Estate is
good source of investment. It is termed as money making industry.
Investments in Gold Deposit-
Many gold deposit schemes are available in market. Investments in this scheme
are opened for HUF, firms, trust with no upper limit. Gold bonds are not
entitled to capital gains tax and wealth tariff.
Thus, depending upon your risk appetite you can chose from various
modes of investment.
Use onlinecalculator for various financial calculations.
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