Top Ways to Invest Your Money Now for a Tension Free Life Ahead
You may be leading a happy life now. But do you see yourself happy once you are off the job? The fact is that most of you may not be! By investing wisely you can get the ball in your court. So how can you be a wise investor?
A wise investor is one who puts a share of today’s hard earned money in a money generating or multiplying scheme. Here is the list of most popular money investment schemes in India.
** Infrastructure Bonds
These are bonds issued by public financial institutions like IDBI and ICICI Bank. It can take form of shares, bonds or debentures. Unlike mutual fund bonds, the risk involved is less as the investment made are not market-linked. These are the perfect option for investors looking for to save taxes and invest in a diversified equity scheme.
Here it goes some features of infrastructure bond:
Lock-in period of 3 years
No tax saving in case money is taken back before the lock-in period
Less risk involved
Less dependent on market situation
** Home loans
Mortgages are an attractive way of investing as it gives two visible benefits. You can actually own a home by paying in instalments at the same time it provides huge tax benefits. With the real estate sector booming you can easily fetch double of what you have invested in a while.
Here are some key points why home loans are attractive than the rest:
Easy Availability from banks and other Financial Institutions
Tax concessions
Get tax deduction on repayment of the principal amount of a loan taken
Interest paid on a loan is deductible from income from the property
Interest paid on a new loan taken to repay the original housing loan is also allowed as deduction.
** Equity-Linked Saving Schemes (ELSS)
ELSS is a saving scheme that explores the power of equities. The amount that you invested in the units of the fund is invested in the equity shares of the companies. Of course the risk involved is high, yet it yields highest return closer to 47%. This investment option actually diminishes the chance of possible liquidity.
Here goes more on this high- return investment option:
Max limit is Rs. 1 lakh
Lock-in period of 3 years
Max returns even up to 47%
High risk involved
** Public Provident Fund (PPF)
PPF is an investment option that needs you to set aside some specific amount on a yearly basis. The best part is that you can even open one, even if you are not earning at all. PPF accounts can be opened at Head Post Offices or nationalized banks that handle PPF accounts.
Here goes a briefing of what all PPF has to offer:
Min limit is Rs. 500 and maximum limit is Rs.70,000.
Rate of interest is 8% p.a.
Spans for a min of 15 years
Restricted withdrawals, 50% of the balance standing at the end of the 4th year to be precise.
** National Saving Certificates (NSC)
NSCs are a saving scheme which appears like a lighter form of PPF. These are certificates issued by Postal department and government of India. The beauty of this scheme is that it combines growth in money and tax benefits. It can make Rs. 1000/- grow to Rs. 1601/- in six years.
Here goes more on this smart long term saving option:
Issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000
Duration is 6 years
High interest rate at 8% compounded half yearly
No prescribed upper limit on investment
** Life Insurance
Life Insurance schemes make sure that your loved ones can move forward with the life even when you can’t help them any more. Apart from this benefit that inherits, it offers tax deduction to you. Tax deduction means more money for investing. The life insurance policy is available from LIC and many private insurers.
Here it goes some facts about life insurance:
Maximum Tax deduction limit for each year is Rs. 1 lakh for insurance investments
Tax exemption for direct taxes and not for service taxes payable on insurance maturity
Premium paid in any year should not exceed 20% of the sum incurred
No deduction on any sum paid in excess of 20% of the sum incurred
** Unit-Linked Insurance (ULIP)
ULIP is basically a combination of investment fund and insurance policy which includes UTI & mutual funds. Hence you can enjoy the goodness of investment funds that yields more returns, along with the insurance cover in a single investment option.
Here goes more on ULIP:
Min limit is Rs. 15,000 with annual contribution of Rs. 1,000 and max limit is Rs. 2 lakhs with annual contribution of Rs. 20,000.
Your age should be between 12 and 55 years 6 months.
Exemption from wealth tax
Service tax may be charged since it gives insurance cover.
Happy Investing! :)
You may be leading a happy life now. But do you see yourself happy once you are off the job? The fact is that most of you may not be! By investing wisely you can get the ball in your court. So how can you be a wise investor?
A wise investor is one who puts a share of today’s hard earned money in a money generating or multiplying scheme. Here is the list of most popular money investment schemes in India.
** Infrastructure Bonds
These are bonds issued by public financial institutions like IDBI and ICICI Bank. It can take form of shares, bonds or debentures. Unlike mutual fund bonds, the risk involved is less as the investment made are not market-linked. These are the perfect option for investors looking for to save taxes and invest in a diversified equity scheme.
Here it goes some features of infrastructure bond:
Lock-in period of 3 years
No tax saving in case money is taken back before the lock-in period
Less risk involved
Less dependent on market situation
** Home loans
Mortgages are an attractive way of investing as it gives two visible benefits. You can actually own a home by paying in instalments at the same time it provides huge tax benefits. With the real estate sector booming you can easily fetch double of what you have invested in a while.
Here are some key points why home loans are attractive than the rest:
Easy Availability from banks and other Financial Institutions
Tax concessions
Get tax deduction on repayment of the principal amount of a loan taken
Interest paid on a loan is deductible from income from the property
Interest paid on a new loan taken to repay the original housing loan is also allowed as deduction.
** Equity-Linked Saving Schemes (ELSS)
ELSS is a saving scheme that explores the power of equities. The amount that you invested in the units of the fund is invested in the equity shares of the companies. Of course the risk involved is high, yet it yields highest return closer to 47%. This investment option actually diminishes the chance of possible liquidity.
Here goes more on this high- return investment option:
Max limit is Rs. 1 lakh
Lock-in period of 3 years
Max returns even up to 47%
High risk involved
** Public Provident Fund (PPF)
PPF is an investment option that needs you to set aside some specific amount on a yearly basis. The best part is that you can even open one, even if you are not earning at all. PPF accounts can be opened at Head Post Offices or nationalized banks that handle PPF accounts.
Here goes a briefing of what all PPF has to offer:
Min limit is Rs. 500 and maximum limit is Rs.70,000.
Rate of interest is 8% p.a.
Spans for a min of 15 years
Restricted withdrawals, 50% of the balance standing at the end of the 4th year to be precise.
** National Saving Certificates (NSC)
NSCs are a saving scheme which appears like a lighter form of PPF. These are certificates issued by Postal department and government of India. The beauty of this scheme is that it combines growth in money and tax benefits. It can make Rs. 1000/- grow to Rs. 1601/- in six years.
Here goes more on this smart long term saving option:
Issued in denominations of Rs 100, Rs 500, Rs 1,000, Rs 5,000 and Rs 10,000
Duration is 6 years
High interest rate at 8% compounded half yearly
No prescribed upper limit on investment
** Life Insurance
Life Insurance schemes make sure that your loved ones can move forward with the life even when you can’t help them any more. Apart from this benefit that inherits, it offers tax deduction to you. Tax deduction means more money for investing. The life insurance policy is available from LIC and many private insurers.
Here it goes some facts about life insurance:
Maximum Tax deduction limit for each year is Rs. 1 lakh for insurance investments
Tax exemption for direct taxes and not for service taxes payable on insurance maturity
Premium paid in any year should not exceed 20% of the sum incurred
No deduction on any sum paid in excess of 20% of the sum incurred
** Unit-Linked Insurance (ULIP)
ULIP is basically a combination of investment fund and insurance policy which includes UTI & mutual funds. Hence you can enjoy the goodness of investment funds that yields more returns, along with the insurance cover in a single investment option.
Here goes more on ULIP:
Min limit is Rs. 15,000 with annual contribution of Rs. 1,000 and max limit is Rs. 2 lakhs with annual contribution of Rs. 20,000.
Your age should be between 12 and 55 years 6 months.
Exemption from wealth tax
Service tax may be charged since it gives insurance cover.
Happy Investing! :)
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