Investment Plans In India
Investment should be a necessary habit of earning individuals. Small
savings if not invested properly loose value due to inflation and falling
purchasing power of money. In order to meet future financial needs and long
term financial goals, it is desirable that money should be invested in sound
financial products. Usually savings are invested in different products without
checking the risk-return ratio. Risk
profile of different Financial Instruments and Investment options can be
assessed by the following table in order to make an informed decision:-
| INVESTMENT OPTIONS | RETURN | RISK | TENURE OF INVESTMENT | MINIMUM INVESTMENT REQUIRED | TAX BENEFIT | LIQUIDITY |
|---|---|---|---|---|---|---|
| Public Provident Fund | Low | Low | Long Term | Small | Yes | Low |
| Post Office Savings Scheme | Low | Low | Long Term | Small | Yes | Low |
| Certificate of Deposits | Low | Low | Short and Medium Term | Small | No | High |
| Corporate Fixed Deposits | Moderate | Moderate | Short and Medium Term | Small | No | Low |
| Corporate Bonds & Debentures | Moderate | Moderate | Medium and Long Term | Small | No | Low |
| Government Bonds | Low | Low | Long Term | Small | In some schemes | Low |
| Equity | High | High | Short, Medium and Long Term | Small | No | High |
| Mutual Funds | Moderate | Moderate | Short, Medium and Long Term | Small | In some schemes | Moderate |
| Gold and Silver | Moderate | Moderate | Short, Medium and Long Term | Small | No | High |
| Real Estate | High | High | Medium and Long Term | High | For long term | Low |
Keeping in view the distinct risk profile of investment, choose your options wisely and stay wealthy....
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