An investor succeeds only when he spreads his wealth & diversifies his investment in different options available in market. But, he should research several investment tools and apply his wisdom before making any investment. He should be very clear regarding his requirement & investment goal.
Examples of few investment options which are popular in Indian market are illustrated below.......
1) Savings account:
- Low-interest investment plan, roughly 4%
- Good option regarding easy & instant withdrawal
- Annul interest up to Rs.10000/- is tax-free
2) Fixed Deposit:
- Medium-interest investment plan with various slabs of interest
- Investment is locked for fixed term
- Any interest is taxable
3) Sovereign Gold Bond:
- Paper gold investment launched by RBI without transaction of physical gold
- Investment is locked for long term
- Return is tax-free
- Additional 2.75% of interest provided annually, which is taxable.
4) Public Provident fund:
- 7.6% annual Interest
- Investment is locked for 15 years
- Return from investment is tax-free
5) Equity / Share:
- Sound knowledge, huge market research & good luck are involved.
- No lock-in period.
- Return after one year is termed as " Long Term Capital Gain" which is tax-free upto gain of Rs.1 lakh in any financial year.
- Return before one year is termed as " Short Term Capital Gain" which is taxable.
6) Mutual Fund:
- Best Plan in Indian market.
- Wise selection of fund after market survey is required.
- One/ three year lock-in period.
- Return after one year is termed as " Long Term Capital Gain" which is tax-free in case of equity-oriented Mutual Fund upto gain of Rs.1 lakh in any financial year.
- Return before one year is termed as " Short Term Capital Gain" which is taxable.
Only some of the popular options are discussed. Hope this will stand you in good stead.
Happy investing !!!
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