Saving money and generating wealth are two crucial aspects of investments. Making smart investment choices that would accrue over time and generate higher investment returns is vital to creating great wealth.
While making investments, considering factors such as flexibility, rate of interest, risk tolerance, and liquidity is important. Those investors who have a high-risk appetite can make growth-oriented investments such as stocks and equities. And, those investors that have a low-risk appetite can consider making fixed income investments like fixed deposits, as they would offer high-interest rates, periodic interest payouts, and increased flexibility.
Top 5 Smart Investment Choices For 2022
ULIPs - Unit Linked Insurance Plans
ULIP or Unit Linked Insurance Plan is a kind of insurance that combines life insurance and investment for safeguarding the finances of a family during uncertain events. The ULIP premium cost is split into two portions. One portion goes for life insurance, and the other for funding investment of your choice. Depending on an individual's objectives and risk tolerance, one can invest in debt, equities, and even a combination of these two. Thus, making it a great long-term investment option for most families and individuals.
Mutual Funds
A mutual fund is a kind of investment that pools money from several individuals for investing in bonds, money market instruments, stocks, and other prominent assets. The management, allocation of assets, and an attempt to the generation of capital gains and income for investors of the fund are done by professional managers. A mutual fund portfolio is built and managed to meet the objective of investment that has been mentioned in the prospectus.
Sukanya Samridhi Account
A popular savings program sponsored by the government for girls' parents called Sukanya Samridhi Account encourages parents of a girl to plan for their future education by setting up money for them.
Public Provident Fund (PPF)
Established in 1968 in India, the Public Provident Fund or PPF aids in the mobilization of small deposits by making an investment and then earning a return. A PPF allows an individual to save on annual taxes and build a fund for retirement. This is one of the major reasons why a PPF is also called savings-cumulative tax savings investment. An individual can earn assured profits and save on taxes by choosing this smart investment choice.
Fixed Deposit
An FD or a Fixed Deposit by banks and non-banking financial institutions to help their customers save money. Having an FD account allows individuals to make large sum investments for long periods at a rate of interest that has already been specified.
The Takeaway:
Due to the present-day market volatility, having a diverse portfolio will be the smartest investment choice. You could always have a combination of high-risk options and some safe investment options such as fixed deposits or get help from financial experts at Andromeda Loans. To help customers find the best financial products that meet their needs, Andromeda Loans, India's largest loan distributor, combines its financial expertise with the latest trends and developments in digital technology. You can learn more about them.
This article is generated and published by FPJ focus team. You can get in touch with them on fpjfocus@fpj.co.in
