Achieving one’s financial goals is no easy task as it requires consistent investment strategies and a disciplined investment approach in the long and short terms. Many people find it difficult to identify their goals and adjust their investments based on that. One of the most important things is to know your financial goals and requirements of funds for each of them. It is also important to understand your income and expenses and existing debt and liabilities.
It may appear like an impossible task in the beginning to build a decent corpus, but it is very much possible to achieve it through consistent efforts. Investing wisely is a crucial step towards securing your financial future and achieving your life goals. Here are seven smart investment options to invest your money and pave the way towards achieving your financial aspirations and becoming rich:
Investing in the stock market can offer significant returns over time. Consider diverse portfolios or mutual funds to mitigate risks. Research and consult experts to identify promising stocks aligned with your risk tolerance and financial goals. However, this is advisable to go for the stock market investment with at least the basic knowledge of the stock market and how trading is carried out in the short and long terms. It involves risks and you must know the pros and cons of it before investing.
Mutual funds pool money from various investors to invest in stocks, bonds, or other assets. They offer diversification and professional management, making them a suitable option for both the beginners and experienced investors.
SIPs in mutual funds allow investors to contribute fixed amounts regularly. It helps in rupee-cost averaging and reduces the impact of market volatility. Start small and increase investments gradually to benefit from the power of compounding.
Property investment has long been a favoured choice for investment in India. It provides the dual benefits of capital appreciation and rental income. However, conduct thorough research on locations, market trends, and legalities before investing in real estate.
National Pension System (NPS)
NPS is a government-backed retirement savings scheme that offers tax benefits. It allows investment in various asset classes and provides a regular pension after retirement. It’s a prudent way to plan for a secure post-retirement life.
Public Provident Fund (PPF)
PPF is a popular long-term investment scheme, backed by the government and designed to help individuals build a retirement corpus while offering attractive tax benefits. It allows investors to deposit a fixed amount annually, with a minimum of Rs 500 and a maximum of Rs 1.5 lakh per financial year.
Adhil Shetty, CEO, Bankbazaar.com, says, “The PPF has a tenure of 15 years, providing compounded tax-free interest, currently set at a rate determined by the government. One of its key advantages is the EEE (Exempt-Exempt-Exempt) status—contributions, interest earned, and maturity proceeds are all tax-exempt, making it a tax-efficient investment avenue.”
“Additionally, PPF accounts can be opened at designated banks or post offices across India, ensuring accessibility for investors. The scheme also allows for partial withdrawals after the completion of five years, providing liquidity in times of need,” adds Shetty.
Upon maturity of the 15-year term, investors can choose to withdraw the entire corpus or extend the account in blocks of five years. The PPF is an excellent choice for risk-averse investors seeking stable returns, tax benefits, and a disciplined approach toward long-term wealth creation and retirement planning.
Fixed Deposits (FDs) and Bonds
FDs and government or corporate bonds offer stable returns over a fixed period. While FDs offer guaranteed returns, bonds provide higher returns with some level of risk. They are ideal for conservative investors seeking steady income. If you are a risk averse investor or wish to park a percentage of your money into safe investment options, these two can help you achieve that goal.
Gold has historically been a hedge against inflation and a safe haven during economic uncertainties. Consider investing in gold ETFs (Exchange-Traded Funds) or sovereign gold bonds for exposure to this asset class.
Shetty explains, “Digital gold offers several advantages over physical gold purchases. It offers convenience, allowing you to buy and sell gold in small increments online, eliminating the need for storage and security concerns. Moreover, digital platforms provide transparency, enabling real-time tracking of gold prices and seamless transactions.”
It is advisable to understand that every investment option carries some level of risk or lock-in period, so it’s crucial to make informed decisions based on your financial situation and goals. With prudent investments, you can pave the way towards achieving your bigger financial goals.
Source : FinancialExpress