The Indian investment market has ample options to offer to match the investment capacity to all extents. Do you hold the notion that it is a compulsion to start investing in massive amounts? If so, you will have a sweet surprise to know that you can start investing with the minimum amount.
If you are continuing with a regular investment plan, you can attain financial freedom in the course of time. You need to know the fixed interest rate, the minimum investment amount, and the investment tenure to get start.
Best Investments For Low-Income Earners
Consider getting started with the Recurring deposit scheme.
A recurring deposit scheme is one of the most flexible investment options, especially if you want to get start with the minimum amount. You need to decide the investment tenure and the per-month investment amount, and you can open a recurring deposit account with any bank. It involves a cumulative payout, and you will get back the corpus along with interest earn on a fixed interest rate at the end of the investment tenure. Once you get to proceed on maturity, you may invest it in a fixed deposit or other investment tools as per your choice. It is a good scheme to meet your short-term goals.
You cannot afford to miss the Public Provident Fund.
You can start the PPF investment with as minimum as 500 rupees per year. The best part is that your contribution towards PPF qualifies for 100% tax exemption to the extent of 1.5 Lakhs per annum. It is a complete government-operate scheme; hence, it offers you complete investment safety. In this scheme, the investment tenure is for 15 years, post which you may consider reinvesting the fund. After completing 4 years, you can avail partial loan facility against your deposit.
Unit Link Insurance Policy- get the benefit of two.
You cannot afford to miss this investment tool that gets you life insurance coverage and paves the way for financial endowment. A part of the contribution goes Investment plan towards life insurance premiums, and the remaining portion is put into market-link investment products. It is ideal for investors who are ready for long-term investment options featuring moderate risk factors.
Systematic Investment Plans- structure approach toward a financial endowment
It is another worthy investment option to consider with a minimum investment amount. You can start a SIP investment with as minimum as 500 Rupees per month. Research suggests that over the last few years, SIP investment has produce one of the best returns for Indian investors.
Mutual Fund promises one of the best returns.
If you aspire for your money to grow the fastest, you must invest in mutual funds. It forms a collective corpus that gets invest in the money market, and the contributor gets the return base on their contribution. However, if you aspire to invest in a mutual fund, you should be ready to shoulder a relatively higher investment risk.
Gold ETF- say a no-no to wealth tax.
It is an exchange-trade investment that aims at the price of physical gold in the Indian market. It is one of the most sought-after investment tools for investors looking for a low-range investment option. The best part about investing in Gold ETF is that it is free of wealth tax liability and hence, is a better investment option compare to physical gold. It is one of the least risk-bearing investment options and helps you to include meaningful diversity in your investment portfolio.
From the discussion, it comes out that there is no shortage of investment tools for individuals who want to start investing with the minimum amount. Please select the investment plan considering your investment capacity, tax liability, cash liquidity, Investment plan, and, most importantly, your financial plans. It will help if you remember that you can still manage to produce a meaningful corpus if you are regular with your investment regime, even if going for a small investment amount at a go. It will pave the way to attain financial liberty and stability within a fair time.
