Savings & Investment options available in India

Many of us are living for a longer period than our ancestors and forefathers. It’s definitely important to have enough money for later years. Because of increase in the price of heath care treatment and long life – you may need additional money for long-term than in short term. When you’re young you may have lower income and smaller savings. Once you reach mid-life- you may have increased income and bigger savings. As you grow older, you may have probably no income and only your financial savings saved all over your earning period will come to your relief.

There are actually several investment choices offered, with their specific benefits and risks included. The following table presents us with a broad analysis about the same.

[table td1=”#” td2=”Title” td3=”Value”]

[td1] 1 [/td1][td2] Cash Investments [/td2] [td3] 1. You get a low rate of interest, but they may be risky during times of inflation

2. Examples: Bank fixed deposits, saving certificate of deposits [/td3]

[td1] 2 [/td1][td2] Debt Securities [/td2] [td3]1. It gives earnings in the form of fixed regular payments and possible increase in the value of your investment at the time of maturity
2. It is more secure and more risk-free investment choice than equity. On the other hand, the earnings are also usually lower than securities
3. Examples: Bonds, National Savings Certificate, etc. [/td3]

[td1] 3 [/td1][td2] Stocks [/td2] [td3]1. Buying stocks and shares enables you to be a part owner of the company and allows you to a share in the business profits
2. Even so they are more unstable and more risky than bonds [/td3]

[td1] 4 [/td1][td2] Mutual Funds [/td2] [td3]1. Mutual Funds are a bunch of shares and securities and involves paying a expert to choose the right investments for you.
2.The best benefit is that you don’t need to make an effort with monitoring the investments.
3.They can be bonds, stock or index-based mutual funds. [/td3]

[td1] 5 [/td1][td2] Insurance [/td2] [td3]1. It is mainly used as a financial security against possible upcoming losses or damages caused by unforeseen events.
2. One can buy security, savings / investments, health and pension plans from a life insurance company.

[td1] 5 [/td1][td2] Real Estate[/td2] [td3]1. They require long-term investment of funds
2. Benefits are generally earned through renting or lease income and also capital appreciation
3. Involves investment in residential and commercial project.[/td3]



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