Investment || Investment can be started from any age. Just plan according to the budget and choose the best option.
Be it an employee or a businessman, if you want to increase your income, you need to invest in the right place. If you start investing early in your career, you will have a huge amount of money in your retirement. Apart from that, proper investments help build healthy savings, leading to financial comfort. Investing in the right place can also avoid the loss of inflation. But investing can be started at any age. Just plan according to the budget and choose the best option. Experts recommend investing 20 percent of income. But the question is, where to invest? Where to invest will get maximum profit or return. Answers to these questions are given here.
Equity Linked Savings Scheme (ELSS):
This scheme is also known as ELSS. Investing in it gives maximum income tax benefits. Up to about Rs.1,50,000 per annum. Those with high salary can get good returns along with income tax exemption if they invest in ELSS. But remember, this scheme has a ‘lock in’ period of 3 years. That is, money cannot be withdrawn before that time. Moreover ELSS is market linked, so there is some risk.
It is ideal for job seekers. Employee Provident Fund is not designed to build large capital during retirement. Income tax exemption under section 80C is also available here. Moreover, if certain eligibility criteria are met, the amount received at the end of the term and the interest earned also get tax exemption.
Fixed Deposit (FD):
FD is the safest medium of investment. It has nothing to do with market fluctuations. Hence fixed rate of return is obtained without minimum risk. Fixed deposits can be made at any age. The interest rate is about 7.75 percent per annum. Consequently, FDs are one of the best ways to ensure financial security.
Mutual funds are famous for giving high rate of return. Here the investor’s money is invested in equity or debt funds. However, experts suggest investing in mutual funds for the long term. However, it should be kept in mind that mutual funds are subject to market fluctuations. So there is risk in investing here. But in Debt Fund (Debt Fund) this kind of volatility is less.
Gold is an ancient medium of investment in this country. It is considered as the best investment option. Gold returns are correlated with the market and inversely correlated with the equity market. This means if the equity market goes down, the gold market goes up. Hence investing in gold market is advised to reduce the risk of investing in equity market. Apart from that, the income in gold investment is also high.