Are you a risk taker? How good are you at taking a risk? How much loss can you bear? Or, do you like to play safe? What is your age? Based on the answers to these questions, we would be able to tell where and how you should invest your money in 2017.
Generally speaking, you can invest your money in the following way:
Invest in savings
The first most thing you should invest your money is in savings. You should atleast have 1.5 lakh in your bank account for any emergency needs.
Invest in land
Investing in land always has given unmatchable profits. Even today, post demonetization, the real estate market is still a gold mine for many investors. The land price has increased at an enormous pace, and it is expected to follow the same trend. Real estate is one such sector that will continue to grow exponentially from here on.
Invest in FD
Want to play safe? Invest in a Fixed deposit. Fixed deposit is the best-assured investment plan. Nothing beats fixed deposits when you want secured interests for longer terms. The best part about FD is that you will never be in loss. However, with the development of the country, the interest rate would keep on decreasing and will be lower than the current rate. You can invest 15 percent of your money in FD.
Also Read: Why you should invest in Fixed Deposit
Have you started investing in SIPs? If not, then start today. Keep long-term view in mind. If you are below 30, you can start 2-3 ELSS. The best thing about ELSS is that you will be able to save tax since it comes under section 80C of income tax act.
This is the best way to earn without paying taxes on the profit. As of now, you need not pay taxes on the profit you are making, provided you sell your shares after one year from the date of purchase. Plus equity market has grown a lot in the last 20 years, as it continuous to do so even today. If you invest in right stocks, there are huge chances of making a good amount of money. But for that, you may need a good knowledge of stock market. Research, learn and invest. Please note, investing in stock market is risky. If you invest in wrong companies, you may end up losing all your money in no time. It is always better to consult a certified investor and take suggestions from him/her before investing.
Invest in Mutual Fund
Don't you understand stock market? Or if you do not have much time to keep track of the market on a regular basis, you may invest in Mutual funds. Mutual funds are taken care of by investment bankers who understand the market; they buy shares of companies after doing comprehensive research. But again, mutual funds are risky too. Chances are there that you may lose your money. So, you must read the scheme related documents carefully before investing.
Also Read: Why you should invest in Mutual Funds
Invest in LIC
Did you invest in LIC? If not, you should invest some part of your earnings. And, investing in LIC falls under section 80C of Tax, so you don't need to pay tax (subjected to terms and conditions). It is one of the mostly used Tax saving schemes in India
Invest in Health Insurance
Get a health insurance today. With mere 10000 INR a year, you can start a health insurance in India. If not used, you may lose the entire money. But if you think in longer perspective, you can save a lot with a proper health insurance policy.
Public Provident Fund
Public Provident Fund is one among the low-risk investment options that ensure excellent returns in the long run. It is completely tax-free and liable to tax deductions under the section 80C of Income Tax Act. The only disadvantage is that in PPF the amount gets locked up to 15 years after which it matures. But from the retirement point of view this will give good annuitized returns. Also since PPF is a government managed scheme the unpredictable trends of market rates post demonetisation are not applicable. Thus this scheme also offers a certain level of stability.