As a salaried individual, you have a fixed monthly income within which you have to plan your expenses, short-term goals, long-term needs, and entertainment and travel. Doing this is easier than you may think. All you need to do is save and choose lucrative investment options for salaried persons. Here are 5 such investment plans that can help you earn good returns and build robust wealth, so you can live the life of your dreams!
Having a fixed deposit as a part of your investment portfolio ensures that you have a guaranteed income which is a boon when you are salaried. An FD is the safest form of investment whose returns are guaranteed and higher than a savings bank account. It also helps in hedging the risks posed by your investments, such as equity. Though an FD has a lock-in period, you can effectively use it to fund your cash crunch and emergency needs by availing a loan against it. To ensure that your funds lie in trusted hands, invest with reputed issuers such as Bajaj Finance whose Fixed Deposit is safe and credible, rated FAAA by CRISIL. In addition, you can also enjoy higher interest rates of up to 8.75% on cumulative FDs when you invest for at least 36 months. As a senior citizen, you can earn up to 9.10%! Use FD Interest Rate Calculator in India to calculate the maturity amount and align your financial goals accordingly.
Also, Read This: What are The Different Types of Fixed Deposits?
As a young salaried professional, you may not have many responsibilities to shoulder. Thus, you can afford to start investing in equities to earn higher returns for wealth creation. Generally, equities are risky options owing to their connection to the market. However, studies are proof that these have the potential to yield higher returns in the long term. Your best move is to avoid direct equities and rather invest in equity mutual funds via SIPs to minimize risk and earn optimal returns. In the meantime, you can also study the market to develop the knowledge and skills required to invest in equity via the stock exchange directly.
As a young parent, it is of utmost importance that you start investing for your girl child’s name from the very beginning. The best way is to open an SSY account, which is especially meant for girls. By investing in SSY, you are safely investing a portion of your salary for the benefits of your girl child, be it for her education or wedding expenses. SSY is a government scheme which matures when your girl turns 21. Here, you can invest a minimum of Rs.250 and maximum of Rs.1.5 lakh in a financial year and earn high-interest rates, which is currently 8.5%. To encourage investors, the government has allowed an EEE status to SSY.
A Public Provident Fund is a low-risk long-term investment scheme with a lock-in period of 15 years. Thus, it gives you no access for unimportant, short-term requirements, instead, helping you save for retirement and future goals. The minimum and maximum amount of deposits allowed in a financial year are Rs.500 and Rs.1.5 lakh respectively. PPF earns a good interest rate that is currently at 8%. What’s more, a PPF offers best post-tax returns thanks to its EEE tax status. You can use the maturity proceeds to meet long-term financial goals such as your children’s education, their wedding expenses, down payment for a home, and retirement.
Invest in NPS to start saving for a secured retirement. The National Pension System is a robust scheme that offers investment options in various asset classes to suit your risk tolerance and expectation of returns. The minimum investment amount in a financial year is fixed at Rs.6,000. On maturity or when you turn 60, you can withdraw 60% of the corpus as a lump sum or in installments till you turn 70. You have to use the remaining 40% to purchase an immediate annuity plan. You can also check PF Account Balance Online.
The above list contains both fixed-income and market-linked investment plans, so as to help you build a dynamic investment portfolio. Start investing in a mix of these options after chalking out a sound financial plan while factoring in your financial goals, risk tolerance, and investment horizon.