When it comes to our personal finances, many of us have changed the way we view our money matters. A recent survey done by Scripbox, a digital wealth manager, found that creating an emergency fund has emerged as the top financial goal in the current environment. So what is an emergency fund? It is a contingency fund that not only helps financially during most difficult times but also prevents the derailment of your saving for long term goals.
The primary objective of your emergency fund is to help you when you need it the most without any delay. While some emergencies may give you a few hours or days to prepare, others may require funds immediately. Therefore, your emergency corpus must be easily and quickly accessible in the form of cash or in the savings bank account. A part of the funds can also be invested in liquid mutual funds that invest only in money market securities and therefore carry low risk. FDs or RDs can also be considered. Here are some advisable instruments.
Living in the US on a visa gives you many opportunities. You earn an income in U.S. dollars and you work in the strongest economy in the world. But, do you as a non-resident Indian (NRI) have the right to invest back home in India? What options do you even have to make an NRI investment in India?
Preparing for your old age starts today. Well, it should actually have started yesterday already. You need to put money away in in different forms of investment to ensure a secure retirement plan. The amount of money you save and invest will determine the standard of living you can afford when you retire.
Investing helps to grow your financial wealth and build up financial assets. For instance, buying property means it can be rented out for rental income. It can also be used as security whenever you want to apply for loans. Secured loans get lower interest rates which lead to cheaper loans. The best investment for NRI in India will help to grow your financial assets the fastest.
You can always invest your money into stocks on the National Stock Exchange of India Ltd. (NSE) if you feel you have enough knowledge. You will need to be part of the Portfolio Investment Scheme (PINS) of the Reserve Bank of India (RBI). This will allow you to trade stocks on the NSE.
Investing in a property is one of the favorite NRI investment in India. It serves as a good long term investment with steady growth (provided the property is in the right location). Make sure which type of bank account you use to buy and sell a property (NRO, NRE, or FCNR). The rules applicable to the account will determine how much money you will be allowed to return to dollars in the end.
Certificate of Deposits (CDs) is usually used as a short termed investment. It almost works like a fixed deposit, but the holder of a CD may sell it. You need a dematerialized account to buy and sell CDs. A CD has a maturity date by which it promises to repay a certain amount. Please note, amounts invested into CDs are typically very hard to return to dollars.
There are great investment NRI investment options in India and you might be wondering how you can utilize it. The good news is you can get a personal loan in the U.S. to invest in India. Taking a loan with a low interest rate and investing it into something with a higher interest rate can help to get you positive returns and build your financial wealth by finding the best investment for NRI in India.
Choosing the best investment options for wealth management is an area of concern for people of all income groups. While accumulating money is crucial for a financially secure future, it does not make sense that you rely on savings alone.
Instead, opting for the top investment options in India is one way you can make your money grow over the years. Investments are often seen synonymous with the stock market or equity money. However, it is only partly true. Apart from these, some of the best investment options in India include fixed deposits, Unit Linked Insurance Plan (ULIP), Liquid funds, and government bonds.
There are several long-term and short term investment options which you can opt for, considering your goals and risk appetite. Many top investment options in India offer additional returns in the form of guaranteed additions. At the same time, it is prudent that you consider diversifying your portfolio with good investment options for maximizing returns and minimizing associated risk.
Fixed Deposits (FD) and Recurring Deposits (RD) have continued to be a popular investment among many investors especially those who seek guaranteed returns with minimal risk. FD and RD accounts can be easily opened with leading banks and Non-Banking Financial Companies (NBFCs) as well as the post office. Key features that make FD and RD a popular investment choice for 2022 include:
While FD and RD investments in India offer comparable returns, fixed deposits are better suited to grow a lump sum investment with interest earnings. Recurring deposits, on the other hand, are better suited to inculcate a savings habit and steadily through regular monthly investments into the account along with interest earnings.
While investment in mutual funds is subjected to market risk one should evaluate the risk before investing. If you understand the market and its risks, mutual funds can become your best investment options to grow money multifold. Whether you are going for short term investments or long term, you can create an investment portfolio based on your preferences.
If you have a lower risk appetite and want a fixed income from mutual funds, monthly systematic investment plans, or systematic withdrawal plans can be good investment options. It can also be a favourable choice if you are looking for a high return investment in India.
One of the first things you should figure out is whether you are looking for long term or short term investments. Direct equity investing is one of the best investment options for long term purpose. It is about the equity shares of a company, which binds you in legal terms related to the company ownership.
These are deposit avenues for investors made available by India Post, the body that controls postal chain in the nation. This investment option was once introduced to help people inculcate the habit of disciplined savings in life while also providing investment avenues to aid in financial planning.
Just like individuals, companies and government bodies need fund for infrastructural development and social programs, for which they issue bonds to the public markets. The interested investors then buy the bonds to help these entities raise money.
What makes them one of the best investment plan in India is that the terms for fixed interest payment, loan principal, and tenure are all included in the bond details. Hence, it assures you of the safety of your investment along with an additional return.
NPS investments do not have guaranteed returns as they invest in market-linked instruments. However, considering the unique tax benefits and its potential to generate inflation-beating returns, NPS is still one the best long-term investments in India right now.
Another investment option for individuals who want market linked returns along with insurance is Unit Linked Insurance Plan (ULIP). You can buy a life insurance which helps to invest in different funds and give you life cover option at the same time. ULIP has become one of the best investment plan in India.
This top investment option in India offers dual benefits of insurance and market investments, which helps you systematically grow your money. You can choose the most suitable policy tenure based on whether you prefer long term or short term investment options. Additionally, ULIP also offers tax benefits under section 80C of the Income Tax Act 1961.
Liquid funds are like stock market investments, wherein money is invested in government bonds and securities. Since there is no lock-in period, it allows you to withdraw money as per your requirement; thereby making it one of the best investment options in the market.
When it comes to short term investments, liquid funds are the one of the best investment options in India. You can invest in it for 3-5 years and withdraw money as per your requirement for fulfilling your short term goals. They are less subject to market risks than mutual funds, which also makes it one of the best investment options.
It is one of the best investment options backed by the Government of India and is meant for people above 60 years of age. The amount deposited in this scheme matures after five years from the date on which the account was opened. It can also be extended for once for the next three years.
A. To start your investment journey, you should identify your goals, i.e. whether you prefer long term or short term investment options. Then consider the level of risk you are ready to take with the amount you have.
A. As detailed above, there are various investment options in India that you can choose to build your portfolio. What is most important is that you have a financial goal(s) associated with your investment decisions. A diversified portfolio of long term and short term investments can be favourable. 2b1af7f3a8