Options and Tips on Financial Investment
The investment term starts from the day we are born. First, we invest our time in family, education, love, and business, etc. Thus this term is not specific to a particular area but has wider coverage.
Now, we will discuss this article on investment related to Finance. The most important objective in terms of finance starts with the return. Thus, whenever we think about investment our sole objective is to earn calculate ROI (Return on Investment)
Following are Options and tips on Financial Investment:-
1. Share/Debentures:- Investment can be in Share/Debentures through Stock Exchange (NSE/BSE). Building Portfolio after proper research/analysis on shares and debentures will provide benefits to individuals in long term aspects. Patience is the prime objective in any research hence, individuals should always keep patience while building a portfolio.
2. Mutual Fund:- Is an investment option whereby individuals instead of building a portfolio himself but will invest in mutual fund companies who will ultimately invest in share/debentures of companies for return. Before investing in mutual fund proper analysis is important for anybody.
3. Fixed Deposit:- This is the most secure and safest form of Investment in which return is not high but fixed with no risk. Thus this LOW-RISK LOW RETURN option available with individuals.
4. Recurring Deposit:- Individual who is in the Salary category can opt for this because in this option fixed amount will get diverted automatically from the individual's bank account to RDs offered by Bank or Post Office.
5. Employee Provident Fund (PPF):- This is a statutory requirement that corporate need to comply with. Employee Contribution towards Provident Fund is deducted from their salary and the equivalently same amount is deposited by an employer as their contribution against the Employee UAN No. The direct benefit available with Employee in regards to PPF is Taxation. No tax is applicable to PF and employees can withdraw this amount in the form of Loan totally tax-free. They also earn interest on this amount deposited with Government.
6. National Pension Scheme:- This investment is long term option in which individuals first need to obtain PRAN no and once PRAN is generated then a certain amount will be deposited against PRAN which is completely Tax-free. The amount deposited in that PRAN No can be withdrawn in the form of Pension after the age of 60 years.
7. Public Provident Fund:- Employer contribution and employee 12% of basic salary which is diverted from the salary of an employee to PF Account.
Thus above were few investment categories used as investment tools.