Rekha’s family was in all joy when their little munchkin turned one recently. The birthday celebration was a big pomp and show. Apart from the several birthday gifts the little one received, the birthday baby was gifted with INR 50,000 from her grandparents. Rekha wanted to exclusive save it for the child as a token of remembrance from the grandparents. But she was not sure of where to invest to receive better returns. She looked into many vehicles and tried comparing them.
- Fixed Deposit: The annual interest rate obtained on fixed deposits made in banks is around 6.5%, which may not be exciting compared to other avenues. The returns are generally not enough to beat the rate of inflation.
- Gold Investment: Gold prices tend to either fluctuate or remain the same for years together. It may not be an ideal investment option if one is looking for a much better rate of return on investments.
- ULIPS: Even though ULIPS are traditional options, which most parents have been preferring, the rate of interest obtained on them may not be as excited as other investment avenues.
- Mutual Funds: Mutual fund investments have proven to be the most efficient and convenient sources of investing. With mutual funds, one can diversify the portfolio by investing in securities such as stocks, bonds, money market instruments and similar assets, thereby making the most. Returns from mutual fund investments may vary between 8% to 12% based on the diversification of the portfolio. Moreover, they also offer convenient liquidity and exit options, unlike other investment avenues.
Above all, the soul of any investment is defining the individual’s need or purpose. Make any investment with a purpose, be it kid’s education requirement or something else. Then, invest in the best available investment vehicle that can offer better returns besides satisfying other important criteria. If you feel you need more information on the personal finance and investment vehicles, approach ArthaYantra – World’s only full-service robo-advisory. Our mission to make high quality financial advice affordable to everyone, irrespective of their wealth status