Investment product
Usually a small investor wants to invest his savings money from where he can get more returns. He also assesses the risk. Small investors first assess the risk, then invest. Therefore, bank FD and PPF are still the most preferred investment medium in India. In recent times, investment in equity i.e. share and mutual funds has increased rapidly. The reason for this is more return than FD and PPF. However, after a major decline in the stock market once again, investors have been forced to think where they should invest their hard -earned money, from where they get returns and the money is also safe. Let us know how a small investor should keep their portfolio in this market.
What are equity investment?
Equity investment is the money invested through the purchase of stock of a company. These shares are usually exchanged in the stock exchange. It can increase the value of the invested principal amount, which comes in the form of capital gains and dividends. This offers a diverse investment option for the minimum initial investment amount. Financial experts say that if you are investing money for a long period and can tolerate risk then investing in equity can be beneficial. However, equity investment is not risk -free. It is affected by market fluctuations, economic recession and company-specific.
What is investment in mutual funds?
Small investors invest money in mutual funds by investing SIP or outright. A knowledgeable fund manager manages money in mutual funds. He selects the right company and invests money. Mutual funds have a lower risk than shares. So if you are a long -term investor then you can choose mutual funds. But take care that the market fluctuations will also have an impact on mutual funds. This is not a completely risk -free investment.
What is investment in gold?
Gold has been one of the popular investments in the Indian market for many years. This gives a sense of security among investors. Gold can be easily purchased compared to real estate. It is also an ideal option as it is easy to sell and you can take it with you anywhere. Unlike stock, real estate and other investments, it does not require any special skills. Gold prices may be unstable, but they have maintained their value over time. Apart from physical gold, you can also invest in Sovereign Gold Bond (SGB) scheme, Gold. Experts say that every investor should keep something gold in his portfolio.
What is Public Provident Fund (PPF)?
Public Provident Fund is a government -backed savings scheme that provides tax profit and attractive returns on investment. The scheme provides tax benefits under Section 80C of the Income Tax Act. The scheme requires a minimum of Rs 500 and a maximum annual deposit of Rs 1.5 lakh. The minimum duration of public provident fund is 15 years, which can be extended to 5 years blocks. PPF account can open any Indian citizen, including minors. With a 15-year lock-in period, it is a suitable option for those who want to invest for long periods.
Latest business news
