What is the significance of investment?

significance of investment
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All of us need to invest our hard-earned money. If we do not invest then we will face problems in the future. So, investment is one of the necessary things just like eating and sleeping. If you invest your money properly then in the future you can purchase a house or car.

What are the popular investment options in India?

In India, there are several investment options. One should know all the details. We are going to discuss the 6 top investment options in India.

Direct Equity:

We all have heard about this term but are not much acquainted with it. We refer to Direct Equity as an investment in stocks. Direct Equity is a potent investment vehicle. It means when you are purchasing stock of the company, you are purchasing partial ownership of that company. One can invest directly in the growth and development of a company. However, you should have enough time and knowledge regarding this. If you don’t have much knowledge then at any moment you can lose all your money.

Mutual Fund:

In the recent decade, there is a growth of mutual funds. Mutual funds are vastly divided into equity, debt, and hybrid funds. Mutual funds are uncertain in investment vehicles. Here you can start up and stop investing at your convenience. Any individual may contemplate investing in mutual funds. However, you should invest in only those funds whose risk categories and goals match yours.

Fixed Deposits:

Fixed Deposits are an investment option. We see FDs in banks and any other financial institute. In the post office also there is a special scheme of FD. Here, you have to invest a certain sum of money for a certain year. The money will remain fixed to the financial institute. After the completion of that particular year, you can withdraw the entire sum of money with a large interest.

Recurring deposits:

Recurring deposit is another way of investment. You can get the benefit of RD in banks and post offices. For example, you are investing 1000 rupees regularly in the bank. The bank or post office will offer you an interest. After the completion of the tenure, you can get the entire amount.

Public provident fund:

Public Provident Fund is also known as PPF. It is a long-term tax-saving investment vehicle. It comes with a lock-in period of at least 15 years. The Government of India offers this special scheme of PPF. Moreover, the sovereign guarantees back the investments of the customers. The Indian government calculates the interest rate of PPF quarterly. It means that after every 4 months the amount will increase.

Employee Provident Fund:

Employee Provident Fund is also known as EPF. It is another retirement-oriented investment vehicle. PPF helps salaried individuals get a tax break under the provisions of Section 80C of the Income Tax Act. EPF deducts are a percentage of an employee’s monthly salary. However, the same amount is again matched by the employer as well.

Conclusion

We have given you some important ideas regarding the types of investment. You should follow the article and start to invest money. Investment is very important in today’s life.

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