Unused savings don’t help much in the long run because inflation easily eats away at savings over time. To beat inflation and build a corpus, you need to invest in the right financial tools. Investing can seem daunting, but when done correctly with the right tools, you can grow your savings exponentially. There are a few essential tips to keep in mind before investing.
Here’s a guide to choosing the best investment tools and growing your savings. Read on to find out more.
Set financial goals and estimate cash needs
It should always be step 1 in planning your investments. Having a budget helps plan finances in advance and makes the process transparent. It would be best if you had an idea of your income after tax deductions, i.e. your take-home meals. After which, you should estimate your expenses and your IMEs. Knowing your cash flow needs gives you an estimate of how much income you can plan to save and invest. Once you’ve decided to invest some of your income and the goal is clear, you can move on to step 2.
Assess risk appetite
With the plethora of investment options available in the market, choosing the right one can seem impossible. However, you should not get overwhelmed as you can quickly eliminate 90% of investment options depending on your risk appetite. If you are a young person looking to grow your wealth, you can choose a medium to high risk option because you can recover and compensate. But, if you are considering investing in your retirement fund, you may want to choose fixed income instruments that offer assured returns, such as a FD with high rates. FD interest rate.
Select an investment tool based on risk appetite
After analyzing your risk-taking abilities, you can choose from a few of these investment options.
High risk investments
Tools based on market movements and dynamics. When market performance is excellent, you can generate generous returns, but you face the risk of capital loss when the market crashes.
For example, stocks, crypto assets, currencies, etc.
Medium risk investments
These tools are less dependent on market performance. This makes these tools safer. You can choose these types of tools to balance your portfolio, make sure you earn well, and keep funds safe.
For example, mutual funds, real estate, low risk investments
These instruments are the best if you want to save for your retirement, finance an important monetary goal like buying a house, etc. You can earn generous sums at maturity when you invest a large sum of money in a stable financial tool over a longer period. These tools are stable because they do not affect volatile market uncertainties.
For example, Old Age Savings Plan, PPF and Term Deposits
Fixed deposits are fixed-income instruments that provide capital security and allow for excellent returns with FD rate. When investing in instruments like FD, there is a fear of not being able to earn more, but with financiers like Bajaj Finance Fixed Deposit, you can enjoy the dual benefits of high FD rates and security. With FD rates of up to 7.60% per annum, you can quickly grow your savings with Bajaj Finance. Apart from lucrative FD rates, they also offer a suite of other benefits such as loans against FD facility up to 75% of FD amount, online application and monitoring infrastructure, flexible terms, etc. . You can also easily calculate your returns using the online DF calculator before investing. This helps to align his investments with his goals.
Here are some highlights of the Bajaj Finance FD plan listed below.
Features and Benefits:
- Low initial deposit amount of Rs. 15,000
- High FD rates up to 7.60% per year
- Flexible terms ranging from 1 year to 5 years
- Cumulative and non-cumulative payments
- Online FD Calculator
- Easy loan against FD facility
- Small monthly investments with a systematic deposit plan
- Convenient online FD application process
- Best credit ratings – CRISIL AAA/STABLE and [ICRA]AAA(Stable)
Another essential post-investment activity is monitoring the performance of the investment. It is much more critical for market-related instruments. Other than that, regular consultation with people experienced in investing can help you avoid the mistakes they learned from.
All income groups are keen to select the best investment solutions for wealth management. Although saving money is essential for a strong financial future, you shouldn’t rely solely on your savings. Instead, choosing from the best investment opportunities in India is one approach to ensuring that your money grows over time. Invest online and diversify your portfolio with good investment options to maximize returns and minimize associated risks.
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The reader is also advised that Crypto products and NFTs are unregulated and can be very risky. There may be no regulatory recourse for any loss arising from such transactions.
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