Saturday, April 20, 2024

    5 Low-Risk Investments You Can Make Before You Turn 30!

    I started saving at the age of, oh, I can’t even remember when I started saving. 

    You do recognize me, right? I am Indi’s Papa. The sole reason why he is alive today and in the midst of you all. Do you want to know how I did it? No, not about how I made Indi who he is but how I invested and became successful. Okay, so, let’s start.

    First of all, draft what you want to invest for. Is it a long term goal or a short term one? Is it going to be for yourself or for your kids? Where do you see yourself after 25 years? 

    Secondly, think whether you want to invest directly or through a broker? Investing through a broker means giving them a small portion of your investment money. Read, ask questions from the expert, and learn how to invest directly. Also, do not invest your money directly in equity.

    Third, try to invest in government schemes and government banks to keep your money safe. There is a high risk of investing in private banks.

    So, let’s take a look at the Investments that you can make, for your better future.

    1. Public Provident Fund
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    Commonly known as its abbreviation, PPF is a tax-free savings scheme offered by the Government of India. The interest is set every quarter and is paid by the government. Remember to make the deposits between 1st and 5th day of every month to maximize the interest. Anyone can open their account, if you are a parent or guardian, then do go ahead and open an account for your child. You can deposit 12 times a year. The deposits can range between ₹500 to ₹1.5 lakhs.  You can open an account at post offices, nationalized banks, or major private banks such as ICICI and Axis Bank. The maturity period of the PPF account is 15 years. 

    1. Systematic Investment Plan
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    Better known as SIP, it allows you to invest regularly a fixed sum in your favorite mutual fund scheme/s. A fixed sum is deducted monthly from your savings account and invested in mutual funds. You can start investing with only ₹500. There is an additional benefit of compound interest and rupee cost averaging which means you don’t have to keep the market in check. Also, you can withdraw anytime.

    1. Fixed Deposit
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    Offered by banking and non-banking services in India, FDs as the name suggests are done for a fixed period of time. You cannot withdraw money in the tenure period without paying penalties. The interest rate of FDs differs bank-to-bank. Moreover, the interest rate is more for senior citizens. Don’t get disheartened, because FDs guarantee the lowest risk for you. Also, you can take loans against it. 

    1. Monthly Income Scheme
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    A debt-oriented scheme, it will provide a steady income on a monthly basis. But, it does not offer a fixed revenue, rather the return is profit-based. There is no lock-in period, thus helping you out in meeting the unforeseen expenditures. Also, there is no limit to investing in MIS.

    1. Post Office Recurring Deposit 
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    If you have a regular monthly income and wish to increase your savings without much loss, then PORD should be your go-to option. A 5-year scheme which is available in the remote regions of India as well as in cities earns interest as per applicable rate compounded on a quarterly basis. The average interest rate is around 6%. You can start investing with just ₹10 or in multiples of ₹5, with no maximum deposit limit. You can also open a joint account with your minor. Plus point, you can withdraw 50% of your profit once a year without incurring any loss.


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