The Government of India has de-monetised र 500 and र 1000 notes with effect from November 9. According to official records, till March 2016, र 14 trillion of the र 16 trillion currency notes issued by the RBI were in denominations of र 500 and र 1,000. This works out to about 10.5 per cent of the GDP.
We at Advisorkhoj believe that, the Government wants its citizens to move from physical cash to digital cash.
With the currency notes becoming a scarce commodity, many of us realised that digital ways of paying cash are easy to work with, omnipresent and far more suitable for the new 'digital' reality that is facing us.
But the interest rates will fall!
While on one hand, Demonetization will bring in additional liquidity to the banking and formal system and support economic growth in longer term, on the other hand, it will lead to lower inflation and interest rates on bank deposits will fall further. Already some banks have reduced their FD rates post this step.
Then what is the option for a common man in a scenario like this?
It is actually simple! In fact very simple !!
Do not keep cash in hand but instead in digital payment options like Wallets for miscellaneous expenses or put all your savings in your bank account and earn savings bank interest on the money.
However, digital wallets do not pay you any interest and from bank savings accounts you can earn only around 4% interest from your savings bank account. Isn't that too small?
Now the question is can you earn more than your savings bank account with the same convenience of Digital Wallets?
The answer is "YES".
How do you grow your money?
Yes, the answer is Mutual Funds. If you invest in a liquid fund you can earn much more than your savings bank account by parking your money in these funds instead of your bank account. While your savings bank account gets you around 4% interest, you can earn around 7% from these funds with the same convenience as that of a savings bank account. This way you earn much more than your savings bank account.
But the next question that comes to your mind is how do you get you money instantly like a bank account?
What if a Debt Mutual Fund gives you Instant Redemption?
That would be the Perfect Solution! Growth bhi aur Liquidity bhi!
Reliance Mutual Fund has launched an app called Reliance Simply Save app. The Reliance Simply Save app is first of its kind app which is directly linked to your Debt mutual fund folio. With a single click you can invest your desired amount with a single click you can redeem the amount within minutes. It allows you to invest money as low as Rs 100 from your bank savings account with a finger swipe on your smart phone. Similarly, you can withdraw the money and get the proceeds credited in your linked bank savings account, all within a maximum of 30 minutes.
So, the choice seems obvious. Invest money in a Debt Mutual Fund; which is sufficiently safe for all practical purposes. Earn a better return than a typical savings account (or even an FD) and redeem the money instantly when you need it!!!
This is where Reliance Mutual Fund has addressed this problem - Reliance Mutual Fund has launched SIMPLY SAVE App which helps you to invest in Reliance Money Manager Fund (which is equivalent) to keeping your idle money in savings bank account instantly. You may also read Earn much more than your savings bank account with ease
The other convenience is that SIMPLY SAVE App allows you to redeem your investments anytime 24x7x365 and your bank account gets credited in 30 minutes!
Isn't this a great option to the old-fashioned savings account?
Simply speaking, the whole idea is that investors can now earn almost double returns compared to their savings bank account with ease
To know more about SIMPLY SAVE APP Please Click here
Please visit FUTURE IS CASHLESS section to know more about SIMPLY SAVE app or just give a MISSED CALL on 8080 944 787 to download the App
(Mutual Fund investments are subject to market risks, read all scheme related documents carefully.)
Sourced from advisorkhoj