If you have recently started your career and have started saving some money from your job then today we are going to tell you 3 schemes through which you can start your investment. These plans will not only help you achieve your financial goals but also you will be able to save a substantial amount with it.
Public Provident Fund (PPF): You can start your investment in Public Provident Fund at the rate of 1000 rupees per month, in this way you will save around 12 thousand rupees per month in a year. The current interest rate on PPF is 7.1 percent. If you invest in PPF, you get an exemption of up to Rs 1.5 lakh under Section 80C of Income Tax. Keep in mind that PPF has a lock-in period of 15 years, but being a government scheme, investing in it is completely safe.
For example, if you invest Rs 12,000 per annum at the rate of Rs 1000 per month for 15 years, your principal amount will be Rs 1.8 lakh. At the same time, if the interest rate of 7.1 percent is evaluated, then during this time you will get an interest of 1.45 thousand on the investment. In this way you can add Rs.3.25 lakhs by investing Rs.1000 per month.
Recurring Deposit (RD): If you are looking for a safe investment option of short duration, then Recurring Deposit (RD) can be a better option for you. In RD you can take it from both bank and post office. But the interest rate is higher in post office as compared to banks. The biggest difference between FD and RD is that in FD you have to deposit the entire amount while in RD you can start with a small amount. The current interest rate on RD at the post office is 5.8%.
Usage : If you add one thousand rupees per month to 12 thousand rupees per year in RD, then 60 thousand rupees will be added in 5 years. If calculated according to the current interest, then your investment of Rs 9,694 on this will become Rs 59,694 in 5 years.
Investing in Mutual Funds: This option is more risky than other options but investors also get more profit in it. Infty Index Fund has given 12 to 15 per cent returns every year for the last 5 years. If you invest one thousand rupees per month in the index fund itself for 5 years, then you will invest 60 thousand rupees. Suppose during this period the Nifty index gives an average return of only 10 percent, then you will make a profit of Rs 78,082 in 5 years on investment.
If you invest 1000 rupees per month in mutual funds continuously for 15 years, then your principal amount of investment will become 1.8 lakhs and on this you will get a return of 4.17 thousand at the rate of 10 percent.