Various
Available Instruments for Investors
On the
account of festival of light, I wish to all my readers and investors to Happy
Diwali. From Diwali in India it is the beginning of new year called “Samvat
Year”. The businessman makes new accounts book for the year and prayer goddess
Laxami and Subhkarta Sri Ganesh. The new earning or young investor should begin
investment for wealthy and prosperous future.
I have
many times felt that when we discuss about investment with investor they often
feel that they need a big amount of sum for it. It is not true, you can begin
from small amount. There is no need of wait for big amount of money. On this Diwali,
start some investment with financial planning. We will discuss about some
available investment options today.
Fixed Deposit and Post Office Deposit:
It is the
safest option but it is not much effective to counter the inflation. At
present, banks provide 8-9% return for long term fix deposit. There is
possibility of interest rate cut by RBI to the last quarter of this fiscal.
Post
office RD is offering 8.40% return and return is taxable. You can start as
little as Rs 10 in the post office schemes. National Saving Certificate offers
8.80% return
PPF:
It stands
for Public Provident Fund. From this financial year, the investment limit has
been increased till Rs 1.5 lakh from Rs 1 lakh. The return of PPF is 8.7% for
this year. The lock in period of PPF is 15 year and it may be extended in 5
years block by subscriber.
Mutual Fund:
On the
sign of improvement in economy, there is much possibility of great return from
mutual fund in long run. For your records, there are many mutual funds schemes
which have delivered more than 10 times return in the last 10 years. It is less
risky in compare with direct investment in the shares. It is very good option
for small investors as you can begin the investment a little Rs 500 for each
month as SIP (Systematic Investment Plan).
Company bonds and deposit:
There are
various companies which are offering till 12% return comes with various ratings
according to their risk profile. Before investing in this, you should check the
rating and risk profile of the companies.
In the
point of returns, the shares and equity mutual funds have outperformed the all
asset classes. The average return of shares and equity mutual funds has been
more than 15% in the last 15 years.
If you want more information
regarding investment or you need investment services, feel free to ask us. We
also conduct the seminar on investment and financial planning. If you are
interested for seminar in your city just drop the mail.
Warm regards,
Arvind Trivedi
Certified Financial Planner
