11 July 2018
Investing your hard earned savings seems a difficult task , but in reality it is not. You you don’t have to be rich to start investing. The key principle is to Start small and start early.
If we focus on the right path to investment, then we would be amused to see the amount that we save in a very short time. It is mind-boggling to see everyone around me spending a considerable time before buying a mobile phone, car or even grocery. But when It comes to investment , the most significant decision of our lives(financially), we just go about it without giving much thought to it.
Hence we want to talk about how investment can be prioritised in the right fashion, and we have the following to explain just that.
7 pillars to build a wise long term investment portfolio:-
We are listing down some wise saving options for the young working population:
ELSS: (Equity Linked Savings Scheme) is a diversified equity mutual fund which is qualified for tax exemption under section 80C of the Income Tax Act. ELSS is a good option to invest in, because the investor has the opportunity to invest in equity markets as well apart from getting benefits of tax deduction.
Also, ELSS has the shortest lock- in period of three years as compared to other tax saving options.
Mutual Funds: Mutual funds are diverse in nature.. They are broadly divided into Equities, Debts and Balance funds. Here the money is pooled in by investors in many bonds, stocks and other types of investment. It also gives you the access to investment professionals who expertise to manage your funds in the best way possible
So owning shares in a mutual fund instead of owning individual stocks or bonds the risks get spread out.
Diversification ensures that a loss in a particular investment gets nullified by gain in another
ULIP’s: ULIP or Unit Linked insurance plan is a life insurance product that provides the risk cover to the policy holder accompanied by the option to invest for long term.
Recurring Deposit : The concept is fairly simple. You can allocate a fixed amount of money every month as deposit with a bank for a period that you specify. This will push you to save and invest on regular basis thus securing your future.
PPF :- The Public Provident Fund has been established by the central government.
Any individual can open a PPF account with any nationalised bank or its branches that handle PPF accounts.
The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 100,000.
The entire balance can be withdrawn upon maturity i.e after 15 years of the close of financial year . The rate of interest is decided upon the government every year. Currently the rate of interest and principle is exempted from tax at the time of deposit and withdrawal.
We hope that this article helps you out in thinking better and planning wisely. Happy Investing!