Finance

Ideal Investment Options for Salaried Individuals

For optimum financial growth, a salaried individual should invest a portion of the income into profitable options in addition to saving. There are occasional cash inflows such as bonuses and hikes that can add more momentum to the financial growth and help in reaching the goals sooner if invested smartly.

Read on to know about the most promising and profitable investment options those are worth investing in for salaried individuals:

Unit Linked Insurance Plan (ULIP)

Insurance companies offer ULIPs that allocate a portion of the premium towards market-linked investments such as equity or government bonds, while the rest of it goes towards life coverage in the form of insurance. Following completion of the lock-in period of 5 years, the returns are obtained based on their market value.

Fixed Deposits

A FD is deemed as one of the safest investment options that are as secure as a savings account, but are much more lucrative. Banks and Non-Banking Financial Companies (NBFCs) offer varying rates of interest on fixed deposit and tenures on their FDs.

On a generic basis, an investor is more likely to find NBFCs offering a higher rate of interest on their FDs than banks. During the tenure, if there is an urgent requirement of funds, select banks and NBFCs also provide the option of availing a loan against an FD. Therefore, one need not withdraw the invested sum prematurely and lose out on the interest earnings.

Public Provident Fund (PPF)

There are Public Provident Funds as well that have a lock in period of 15 years and are backed by the Government of India.

PPF was started by the government to promote long-term savings and to ensure that you have a regular source of income after you retire. Tax savings also play a large role when it comes to choosing an investment route for your retirement as it protects your hard-earned money. Whether you are salaried or self-employed, you can secure your retirement by starting a PPF account and pay no tax on interest earned.

Mutual Funds

This form of investment involved a pool of money where many investors like you come together to invest in either equity or other funds in the market. Since a qualified fund manager makes the investment on your behalf, you can earn a higher income from this investment. However, it is riskier, as it is linked to the market. However, mutual funds are known as one of the best long term investment plans. While some mutual fund plans require lump sum amounts, you can also invest regularly through SIPs and gain returns on the same. This can also help you inculcate a regular investing habit while giving you the benefit of compounded interest.

Real Estate

This non-financial investment option is amongst the best investments for your future.  Not only can you gain from increase in property prices when you decide to sell, but you can also earn regularly via rent. The location of the property is the most important factor that will determine its value in near future. There are various requirements including approvals and registration required to acquire a land. You may also require government permissions. So, if you are intending to invest in real estate, choose whether you would like to invest in a property from scratch including the purchase of land and construction on the same, or would like to buy a completed property. Remember to take your financial capability and future financial needs into consideration while deciding the same.

Whether you’re in your first job or a business owner, whether you’re newly married or a retiree, having the right investments in place can secure your present and your future. To grow your wealth, start investing in the right instrument at the right time.

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