49 Tips

Investment Tips

Submitted By: tommy in Finance Tips category

You can find various investment tips are available these days. You have to plan an investment strategy so that you can choose from investment options. You have to take the advice of your investment manager and diversify your investment. Ideally your investment should have the following.

Provide guaranteed returns
High interest rates
Tax saving benefits

Things you should consider before deciding your investment plan:

Decide your requirements. Decide if you want long term or short term option.
Do you want regular saving or a one time lump sum saving?
Decide your risk factor as, how much risk you can take?
Check the benefits and the losses involved before investing.

Different investment options are given below. Take help of your investment manager and decide an investment strategy.

Fixed deposits in Bank :

If you want to invest for a long period and get regular income, this is ideal. Here you invest certain amount for a specific time with fixed rate of interest.

Recurring deposits:

When you invest in recurring deposits, you invest a specific amount for a monthly basis. The deposit has a fixed tenure and you receive your principle and inters at the end.

This option allows you compulsory saving at high interest along with access to liquidity at any given time.

Government tax saving bonds:

There are many tax saving bonds that allow you to save on tax. The interest is compounded half yearly and is a good option. The interest received is free of any tax.

Post office savings:

There are many options available for post office savings. You have to check it at your nearest post office.

Time deposits
Recurring deposits
Monthly income scheme
National saving certificate
Kisan vikas patra
Public provident funds

Infrastructural bonds:

These are available through issues. You can choose from ICICI and IDBI flexi bonds.

Company fixed deposits:

Company fixed deposits are when you deposit a sum in deposits and earn a fixed rate of return over a period of time. Many institutions accept such deposits.

Life insurance:

Life insurance saving schemes for government and private companies are available. Check various schemes and select the best one that suites you.

Specified saving schemes:

Some schemes allow you the benefit of tax rebate. You should check these as an investment option.

Contribution to employees provident fund
Unit linked Insurance plan
Public provident fund
National saving certificates

Investment in mutual funds:

You can take help from an investment manager while investing in mutual funds. They provide liquidity and can be traded in stock market.

Open end mutual funds
Closed ended mutual funds

Exchange traded fund:

These funds are well traded in the US. They have an array of some some blue chip stocks that provide tremendous gains.

Stock market:

You can invest in the stock market and earn handsome returns. Foreign investors have to follow certain rules by Indian banks and other regulatory bodies before investing in stock market. However, many Indian companies have issued ADR and GDR (American/ Global depository receipts) in foreign stock markets.

There are many investment options that give you money growth and financial security. You should choose wisely. You should consider your requirements and see which investment strategy suites you.

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