Best Investment Options For People With Regular Income Sources
Updated On May 03, 2021
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It is very important for a salaried person to establish a stable financial life so that his/her future after retirement is not bleak but more secure than ever. Every investor may have a life goal which he/she wants to fulfil. Salaried persons who have just started making will definitely want their money to grow in future. The market today is filled with so many best investment options for salaried persons to choose from. Let’s look at some of the best investment policies for salaried people.
Best Investment Options For Salaried Persons
Following are some of the investment options which salaried individuals must consider to invest their hard-earned money -
1. Fixed Deposits
Fixed deposits are one of the safest ways to invest money. The money you invest is deposited for a fixed term at a specific interest rate. Fixed deposits in post offices are free of TDS tax but the return is not very high. In commercial banks, the interest rates are usually higher than post office banks. The principal amount may have tax benefits but the interest is not tax-free as in the case of post offices.
2. Recurring Deposits
If you want to earn high interests in a short amount of time, then investing in recurring deposits may seem a safe choice. In this kind of investment, a certain amount of fixed money is deducted from your savings/ current account every month and once your recurring deposit has reached its maturity term, you get your investment back with the accrued interest amount.
3. Public Provident Fund
If you want to invest in a long-term investment, then Public Provident Scheme is one of the best investment options for salaried persons. Your investments are not only safe under the Government but also your interests are tax-free and you get other tax benefits. The minimum amount that you can invest is INR 500 and the maximum amount that you can invest is INR 1.5 Lakh. The tenure of the investment policy is for 15 years.
4. National Pension Scheme
If you want to invest in a scheme that will not only function as an investment plan but will also cover your retirement, then the National Pension Scheme is the right option. It not only gives you tax benefits but also promises all the repayments as it functions under the aegis of the government. This scheme is open to all citizens but is compulsory for all government employees. One can choose to invest INR 500 per month or INR 6000 annually in the scheme. This makes it very convenient.
The price of gold is rising every year and will rise more in the years to come. This makes gold a very important and lucrative investment option. When the prices are comparatively low, you can invest by buying physical gold and in say the next 10 years, the price of that gold will have increased manifold. There are many other ways to invest in gold. There are gold mutual funds, gold bars, and even Gold Exchange Traded Funds.
The inflation rate in the country, the fluctuation in the market, market risks, your salary, and expenditure on the current needs and requirements must be kept in mind before investing your money. If you want tax benefits with security, then you may opt for government-backed schemes. But if you want high returns in a short period of time, then investment policies put forward by commercial banks may seem the best option.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.