Just Started Working? What to do with Your Money?

Personal savings in India increased to Rs 22,124.14 billion in 2013 from Rs 20,547.37 billion in 2012, according to data published by Trading Economics. Do you have surplus money lying idle in your savings account? You can invest the same in various investment options available in the market and earn higher returns. Both banks and non-banking finance companies in India offer investment and asset management solutions. Investing your money in avenues offering high return can help create a significant corpus and fulfil your short term and long-term financial goals.

5 Investment Options You Must Consider

Given below are a few investment options that are offered by various finance companies in India.

1. Mutual Funds – It is one of the best solutions for individuals who wish to invest in the stock market but do not have the required time and skill to assess the market. Mutual funds are managed by experienced fund managers. Fund mangers assess your future financial aspirations and current financial condition to create a customised portfolio. This portfolio may include investments in equity, debt market instruments, fixed deposits, gold and more. However, each element differs on the basis of the risk involved, expected return and maturity.
2. Bonds – Bonds are promissory notes that say that the investor would be paid a certain amount of interest for a certain time period and would also receive the principal amount upon maturity. There are various types of bonds, such as government securities, private debt securities, PSU bonds and so on.
3. Life Insurance – Although the primary purpose of life insurance is to cover the insured’s life but it can also be used as a great investment tool. There are various kinds of life insurance policies that offer both savings and investment options. Some of the policies that you can consider are ULIPs, money-back, endowment or whole life. You should look at a term plan if you need a pure protection plan.
4. Fixed Deposits – This is a great option for individuals with a low risk appetite. If you have a significant amount of money that will not be used for a minimum of 12 to 14 months, then you must consider this option. NBFCs offer much higher rates of interest than banks. They may also offer pre-mature withdrawal. You can also get a loan against the fixed deposit. There is flexibility of tenure, so you can opt for the most suitable term.
5. Real Estate – Individuals invest in real estate both for personal use and as an investment. The value of property appreciates overtime and it provides both short-term and long-term gains in the form of rental income and capital gains, respectively. However, finding the right property might become a task in itself. Finance companies in India offer real estate advisory services, which can help you to find a potential property and get a good deal as well. NBFCs can also help you get home loan faster as well as help you with the legal procedures.