Making investments is not only essential for your future financial security but also for achieving your goals.
Even if you have no prior experience, you can dip your toes in the world of investments by taking small steps with scores of safe options. These don’t require ample time or money. Simply diverting a small portion of your monthly salary will do the trick.
Best of all, these instruments are entirely secure, which means that your money will earn you stable returns.
Here are three such investments that you can start with as soon as you receive your paycheque.
Employee provident fund
The Government of India started this scheme was started by the Government of India to help salaried Indians save regularly for retirement. Here, you contribute a portion of your salary towards your EPF account, as does your employer. You can access the amount when you retire or two months after you quit a job. The latter, however, is not advisable as you lose out on returns.
The current EPF interest rate is 8.5%. Since the amount is deducted from your salary before it is paid to you, it’s the simplest investment. While it is mandatory for specific organisations to have EPF for employees, you can request your company to introduce it if it doesn’t already invest in it.
Public provident fund
Another scheme initiated by the government, the Public Provident Fund or PPF, is a long-term investment vehicle with a lock-in period of 15 years. Once your tenor is up, you can continue to renew your PPF every five years. Here, you bear the total contribution, and you can start with as little as Rs. 500 every year. While the lock-in period is significant, you can make partial withdrawals after a few years and get a loan using your PPF investment as collateral.
The third and most beneficial investment of the lot is a fixed deposit. It is offered by post offices, banks and companies, and NBFCs. FDs offered by NBFCs are considered to be most beneficial, as they offer some of the highest interest rates. The Bajaj Finance Fixed Deposit offers one of the highest FD interest rates. You can choose a tenure of your choice, but it’s best to invest for around 36 months as this duration offers you inflation-beating returns.
It’s recommended that you invest in FDs with whatever amount you can spare, and once you claim your PPF or EPF, reinvest the sum in a company FD. The government doesn’t secure these, but a high credit rating by CRISIL and ICRA, such as Bajaj Finance FDs, is a safe choice. By reinvesting, you allow your money to grow further without exposing it to risk.
With an online application, a minimum investment amount of just Rs. 15,000 and the option of receiving periodic payouts to assist with your expenses, the Bajaj Finance Fixed Deposit is worth its weight in gold. Best of all, you can apply and manage your investment online. Use the FD calculator to forecast your returns, choose the right principal amount and tenor, and fill a short online form. Getting started is that easy.
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