Whenever women discuss finances and investments, one fear that grips their mind is the risk and the terror of losing their hard earned or saved money! So, these investment options would take that stress off those beautiful brains to ensure a peaceful sleep and more productive thoughts!
1. Bank Fixed Deposits: The traditional Bank Fixed Deposits offer better returns than normal savings account. They’re risk free and give assured returns. Another feature is the tax rebate as the investors can avail a rebate for up to ₹1,50,000 of deductible income with partial withdrawal and loan against balance.
2. National Pension Scheme: This one’s a government sponsored retirement scheme comprising corpus breakup in a number of instruments like liquid funds, corporate bonds and FDs with the option of choosing the kind of scheme suiting your type and requirements. You can also avail tax deductions of up to ₹2,00,000 a year along with the leeway to choose either active or auto management of portfolio.
3. Public Provident Fund: It comes with a lock in period of 15 years with partial withdrawal option and is backed by the Government of India. Interest is nontaxable and the amount deposited is deductible for income tax rebate for up to ₹1,50,000 a year. The scheme offers consistent returns and capital appreciation without risk and the investors are eligible take a loan against 25% of their fund amount payable within three years.
4. Gold: Gold is the ancestral way to invest and hedge against the inflation and sudden capital requirements. Apart from physical god, investors can also invest in gold ETFs, Sovereign bonds, gold coins and gold bars. Gold also provides capital protection as its prices rise considerably over a time period.
5. Debt Mutual Funds: They are among the class of mutual funds wherein the capital is invested in government and corporate bonds. There are debt funds, which offer negligible or near zero risk like liquid funds. Risk comes with changes in interest rates as the bond prices move in opposite direction. The net earnings and capital appreciation depends on the type of bond chosen. However, the investors are advised to check the credit rating of the fund before investing.
Before planning and initiating any investment, it is of paramount importance to determine the risk profile, time horizon and investment goals. All these factors are the pre requisites to stick to a methodology aligning investments with wealth goals.
