As a newly salaried person or someone who started saving some money for the future, there are dime-a-dozen investment options available in the country.
Personal finance is a vast subject, and it is great to start somewhere, provided you have the right mindset to learn more about it, gain proper and verifiable knowledge, and have the right professional advice.
Here are five investment methods (among the many) that you can explore in personal finance as you start off, adhering to the latest rules are regulations in place in India.
1. Public Provident Fund (PPF)
PPFs are considered a safe investment in India. It is a government-backed savings option that grows your money over 15 years with tax-free interest. Pair your PF with a PPF for regular and systematic investments.
2. National Pension System (NPS)
The NPS is a retirement plan where you invest regularly, and it grows until you retire, with some tax benefits too. The Finance Ministry keeps updating the benefits for contributions to the NPS scheme. You can also explore other schemes such as the Atal Pension Yojana.
3. Fixed Deposits (FDs)
FDs prioritise safety and security over growth. Here, you put your money in a bank for a fixed time, earn guaranteed interest, and sleep easy knowing it’s secure. Each bank has its own schemes, governed by RBI rates—including tax-saving ones. So, it is best to check with them.
4. Post Office Savings Schemes
Head to your nearest post office to check out their latest savings schemes. These are simple, government-run options like the Monthly Income Scheme or Kisan Vikas Patra, perfect for steady returns. What’s more? They run special schemes for women. Look out for schemes which offer interest income deductions under 80 TTA of the Income Tax Act.
5. Equity Mutual Funds (ETFs)
Simply put, in equity mutual funds, you pool money with others to buy stocks. These funds are managed by experts and are great for long-term growth if you’re open to market-based risk. You can start by earmarking a small amount every month and putting it in mutual funds—this is called a Systematic Investment Plan (SIP).
While these options are all active and compliant with India’s latest regulations, the Centre tweaks rules at times—be it tax benefits or interest rates—so it’s smart to double-check with official sites or a financial advisor before jumping in.
And remember, mutual fund investments are subject to market risks, read all scheme-related documents carefully before investing. “Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme,” according to the Association of Mutual Funds in India (AMFI).
Each of these methods suits different goals, whether you’re playing it safe or aiming for significant growth in your savings and investments!
DISCLAIMER: This article is for information purposes only, as per relevant sources such as RBI, SEBI, and relevant departments under the Ministry of Finance. THE WEEK does not endorse any specific investment method.
