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The past few years have been rife with significant financial changes such as RBI's consecutive rate changes, and introduction of PMAY. And while we haven't yet recovered from these transitions, the country is preparing for another big event - the Lok Sabha Election. Ahead of these elections, stock markets are likely to be more volatile, which may impact your investment plans and returns.
Investing in the right investment instruments can help your investment portfolio sail smoothly through the waves of transitions. Here are some of the best investment instruments to help you harvest great returns this year.
Reap Higher Yields From Fixed Deposits
Owing to the MCLR rate alterations put forth by the RBI in 2018, financial institutions have revised the FD interest rates as well. However, experts believe that there won't be any further increase in FD interest rates in 2019, owing to the introduction of the external benchmark system in April 2019. Through this move, borrowers are set to benefit more, as compared to investors.
Hence, now is your chance to make the most of high FD rates. Compare issuer offerings based on interest rate, to multiply your money successfully. In this regard, invest in Bajaj Finance Fixed Deposit, where you can benefit from an attractive interest of 8.75%, which can go up to 9.10% for senior citizens.
You can gain a higher interest rate by renewing your FD.
Curtail The Impact Of Volatility With Sips
With 2019 being an election year, share prices and the stock market are bound to fluctuate greatly. However, as an investor you can gain from these fluctuating markets while taking on minimal risk through SIPs.
Experts are predicting that investing in SIPs will help you gain more, owing to the rupee-cost averaging system, as this year you will have more chances to buy units at a lower cost that are likely to fetch you higher NAVs over the years.
So, whether you began your SIP a few years back or are planning to start now, this year is vital and staying invested will help you build wealth in due course of time.
Gain More Returns From Equity Mutual Funds
As a small investor choosing to invest in the range of Rs. 5,000 to Rs. 10,000 in mutual funds, you do not have to worry about incurring capital gains higher than Rs. 1 lakh in a year. This will, in turn, save you from paying 10% of the return proceeds as tax, as per the revised Income Tax deduction rules.
So, utilise this benefit to the maximum in 2019, and invest a smaller amount in equity mutual funds. Moreover, monitor your units from time to time and regulate or reinvest them in such a way that you stay well within the Rs. 1 lakh threshold, this year.
Consider Investing In Nps For Better Security
Unlike an EPF, you can invest in the National Pension Scheme independently. NPS is a tax-efficient, flexible pension scheme that is backed by the Government of India. This means that high gains from your investment are a sure thing.
Unlike before, 60% of your NPS maturity withdrawal is exempted from tax. The Pension Fund Regulatory and Development Authority also allows you to allocate up to 75% of your NPS funds in equities under the active choice option.
When it comes to multiplying your savings, it is important to invest smartly. Use the FD calculator to know your maturity amount in advance, so you can make an informed decision.
While there may be an inherent risk in most investment avenues, you can look for options offering guaranteed returns, especially during times of increasing market volatilities.