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Month: January 2017

5 Reasons You Should Invest In A Fixed Deposit Today

Fixed Deposit is probably the most well-known method of investing money. With the introduction of many diversified schemes of investment, many have lost their faith in the concept of Fixed Deposit. But even today, they are probably the best way to invest money for a long term period. If you ask why? Here are 5 reasons.

Fixed Deposit

The Rate Of Interest Is Fixed

There may be inflation and deflation, changes in income tax rates and demonetisation, but fixed deposits depend on neither of the factors. The rate of interest is fixed and therefore the monetary returns remain same despite market rates. This is where the fixed deposit is advantageous over other schemes as the rest of the schemes have variable return rates which may fall in the scenario of an economic crisis.

Flexibility In Duration For Maturity

The duration of the fixed deposit amount to mature can be decided by the investing customer. The time span ranges from a week to two decades. Thus according to the comfort of the beneficiary, the fixed deposit account can be started.

Advantageous For Senior Citizens

For the senior citizens fixed deposits are the most beneficial option. This is because they get higher rates of interest as account holders. Also, they do not have to pay any taxes till their matured fixed deposit amount is in the lowest tax slab.

There Are Schemes For Saving Tax

When investing our money, we do not like to put all of it into the same investment scheme. Here Fixed Deposit provides you with the flexibility of investing in a different scheme under it. There are certain fixed deposits known as Tax Saving FD’s with longer maturity period. In these accounts, a principle amount can be invested and locked for a duration of 5 years. These are the stringent kinds of saving accounts that will not let you debit any amount of money until maturity.

Fast Liquidity Of Monetary Assets

The liquidity of assets means the ability of a financial investment to be converted into cash. In the case of Fixed Deposit, this provision is given to the account holder. Thus during an emergency, the money can be withdrawn from the FD before maturity period. This kind of flexibility is important in an economy where many variations are taking place at once. Therefore, the value of fixed deposit stands even today.

5 Reasons Why You Should Invest In Mutual Funds Today

Financial investment is an issue that never ceases to worry an individual. It plays a valuable role in the management of finances. We have options galore, but we never seem to find the solution we are looking for. In this scenario, it is best to consider what majority of financial advisors suggest: Mutual Funds. Mutual funds are perhaps the most flexible investment option, returning benefits that are more favorable than other investment deals. Here are 5 reasons why you should invest in mutual funds today.

mutual funds investment

It Will Be Well-Adjusted With Union Budget 2017 And The GST Bill

Union Budget 2017 is going for a complete economic reform in the country as far as taxation, monetary transactions and market values are concerned. So we need the most flexible option for financial investments. Mutual funds give us exactly that. It is an inflation and deflation adjusting scheme that will ensure that our net asset worth never falls irrespective of the market scenario. With GST bill being introduced there will be a huge economic deflation and inflation in the market prices simultaneously. In this potential market chaos, it is very necessary to have a well-adjusted investment option. Since there are many schemes under mutual funds, deflation will mean a certain amount can be withdrawn giving maximal returns and inflation will mean that a certain amount will be saved in mutual funds which can be withdrawn later with better returns. Thus it is a very flexible option.

Will Increase Ability To Purchase Valuable Assets Like Real Estate

One of the most potential effects of demonetisation and the Union Budget 2017 will be seen in real estate. Where prices were multiplying every year, there will be a major fall. But this fall will only last for the initial few years, so investment in mutual funds today is very important. With a scheme that ensures potentially high return rates, and where money can be withdrawn any time based on the net value available in the account, the purchase of real estate will become much easier. And today real estate is the trending way to increase your net worth in the market.

Income Tax Slab Rates Will Be Broadened So More Money Can Be Invested

“The more you invest, the better is your return” is the policy followed by mutual funds. Also for an emergency situation, it has various flexible schemes under it so that you can divide your monetary assets and invest them in separate schemes. Now with the income tax slab rates being broadened with the introduction of Union Budget 2017, there will be more money at the disposal of the higher earning sections of the society. Thus investing in different schemes will become easier. So, why put all your eggs in one basket? Go for Mutual Funds and invest your money smartly.

Initial Investment Amount Is Low

The most advantageous factor about Mutual Funds is that it is an investment everybody can afford. With demonetisation, India is making its economy a platform for cashless transactions. But the small-scale investors in India will go through a huge setback. They are financially weaker and sometimes are not familiar with the cashless procedure. Mutual Funds provide an option of investing a very low amount of money initially to make an account. And it is totally open to investment via cash.

Complete Transparency In Financial Transactions

The financial transactions in case of mutual funds are taken care by expert professionals and ensure complete transparency as the details are updated and sent to the beneficiary regularly. It also clearly states how the money invested is generating returns and what is the net worth of different schemes, in case a withdrawal is considered.

Where should you invest your money in 2017 for best returns

Are you a risk taker? How good are you at taking a risk? How much loss can you bear? Or, do you like to play safe? What is your age? Based on the answers to these questions, we would be able to tell where and how you should invest your money in 2017.

Generally speaking, you can invest your money in the following way:

Invest in savings

The first most thing you should invest your money is in savings. You should atleast have 1.5 lakh in your bank account for any emergency needs.

Invest in land

Investing in land always has given unmatchable profits. Even today, post demonetization, the real estate market is still a gold mine for many investors. The land price has increased at an enormous pace, and it is expected to follow the same trend. Real estate is one such sector that will continue to grow exponentially from here on.

Invest in FD

Want to play safe? Invest in a Fixed deposit. Fixed deposit is the best-assured investment plan. Nothing beats fixed deposits when you want secured interests for longer terms. The best part about FD is that you will never be in loss. However, with the development of the country, the interest rate would keep on decreasing and will be lower than the current rate. You can invest 15 percent of your money in FD.

Also Read: Why you should invest in Fixed Deposit

Start SIP

Have you started investing in SIPs? If not, then start today. Keep long-term view in mind. If you are below 30, you can start 2-3 ELSS. The best thing about ELSS is that you will be able to save tax since it comes under section 80C of income tax act.

Also Read: Avoid these 5 mistakes when investing in ELSS

Invest in Share Market

This is the best way to earn without paying taxes on the profit. As of now, you need not pay taxes on the profit you are making, provided you sell your shares after one year from the date of purchase. Plus equity market has grown a lot in the last 20 years, as it continuous to do so even today. If you invest in right stocks, there are huge chances of making a good amount of money. But for that, you may need a good knowledge of stock market. Research, learn and invest. Please note, investing in stock market is risky. If you invest in wrong companies, you may end up losing all your money in no time. It is always better to consult a certified investor and take suggestions from him/her before investing.

Invest in Mutual Fund

Don’t you understand stock market? Or if you do not have much time to keep track of the market on a regular basis, you may invest in Mutual funds. Mutual funds are taken care of by investment bankers who understand the market; they buy shares of companies after doing comprehensive research. But again, mutual funds are risky too. Chances are there that you may lose your money. So, you must read the scheme related documents carefully before investing.

Also Read: Why you should invest in Mutual Funds

Invest in LIC

Did you invest in LIC? If not, you should invest some part of your earnings. And, investing in LIC falls under section 80C of Tax, so you don’t need to pay tax (subjected to terms and conditions). It is one of the mostly used Tax saving schemes in India

Invest in Health Insurance

Get a health insurance today. With mere 10000 INR a year, you can start a health insurance in India. If not used, you may lose the entire money. But if you think in longer perspective, you can save a lot with a proper health insurance policy.

Public Provident Fund

Public Provident Fund is one among the low-risk investment options that ensure excellent returns in the long run. It is completely tax-free and liable to tax deductions under the section 80C of Income Tax Act. The only disadvantage is that in PPF the amount gets locked up to 15 years after which it matures. But from the retirement point of view this will give good annuitized returns. Also since PPF is a government managed scheme the unpredictable trends of market rates post demonetisation are not applicable. Thus this scheme also offers a certain level of stability.