For people who wish to diversify beyond stocks and mutual funds there are options in alternative asset which can provide high returns with less correlation to market such as international real estate, Invoice discounting, Crypto Interest account etc.
@pranali-yadav said in Child Plans: How to plan for your Child's Education:
Most of the people think insurance as the investment plan. But, it is risk coverage. It will be totally wrong to mix both of them.
Very right! It is better to start investing rather than thinking. Insurance & investment are two different things. Both of these need to be done keeping in mind different objectives.
Planning for your child's education well in advance through proper investment strategy ca really prove helpful. So, we need to work out the best options to get good returns from our investments.
Zero brokerage model is quite popular these days which was commenced to increase the contribution of traders in Indian stock market. In recent time, the discount brokers have outperformed traditional brokers with little or no brokerage charges at all. Though still, they do not offer the investment and trading ideas that any entry-level investor or trader would require to begin investing or stock trading in capital markets.
Fear of losing the principal is much worse than paying some brokerage charges. In this regard, Invest19 is the only platform that defines zero brokerage in its true sense. With its emerging stock investment and wealth management platform Invest19 App gives the opportunity to traders to open a free Demat account with any of their registered brokers and allow stock trading with zero brokerage. Not just that it also offers them to benefit from the stock research and investment ideas that are available on this platform to make smart stock trading decisions and better returns.
I was quite new to investing in early 2017. Its because I started working at that time. Before taking any decision I started reading investment blogs and guides. In my case, I mostly followed Investopedia, Elearnmarkets and The balance.
With lot of thoughts about mutual funds, recurring deposits, PPF and even stocks, I came to the final decision of investing Equity Linked savings scheme.
Here is why?
It saves my tax
It is having low lock-in period
Even you can try out as well.
Hi I was thinking to invest some amount in an FD with monthly or quarterly payouts and funding a PPF account using that payout+ some of my own money. Is that plan viable at all considering taxes and inflation?
Is there any other way can I invest that money? (except mutual funds as I don't trust them at all)
Salaried individuals have a fixed monthly cash flow to meet their expenses and save for various life goals. They can save money for their retirement through the Employee Provident Fund.
However, savings in today’s time cannot be sufficient enough to take care of major expenses like child education, purchase of a house, or critical illness. Hence, one has to be in search of options that can transform his/her savings into wealth.
There are plenty of investment options like mutual funds, stock market, public provident fund, fixed deposits, national pension scheme, and ELSS funds. Therefore, depending on your target corpus and investment goals, you can select the avenue and invest the required money.
However, before investing money in the following assets I would suggest you get life insurance. The only thing predictable in life is its sheer uncertainty.
Regardless of how much you earn, no one knows what the future holds. Your family is dependent on you for all the basic needs, hence it is your responsibility to secure their future even in your absence. Hence, you can buy insurance and safeguard your family’s future. These days process of buying insurance is paperless, hassle-free and fast.
Let's learn few small tips as to How to become a successful trader.
To become a successful trader, you need a clear system that helps you to stay consistent and handle negative market movements. You must also guard against becoming over-emotional.
So, there is no magic formula to becoming a successful trader.
Stock Trading Basics:
Here are a few steps you can take to make sure you’re mastering both the basics and complexities of trading:
Do your own research.
Create a trading plan.
Practise your trades.
When you’re ready to take on the markets, you can open a live trading account.
Let's discuss these points in detail...
1. Do your own research
Improving your knowledge of financial markets is the first step to becoming a successful trader. Start by researching the different markets available to trade and to build your trading skills. Remember that you can never know too much; if you want to be a successful trader, you must always aim to improve your knowledge.
2. Create a Trading plan
A trading plan is a blueprint for how you are going to trade. It is driven by your trading strategy, helping you to quantify your goals and motivation. Your trading plan also covers your risk management strategy and preferred analysis method.
Learn how to create a successful trading plan.
3. Practise your Trades
If you want to put your trading plan into practice, you can start trialling your trades on demo account. With a demo account, you can develop your skills without risking your capital right away. Practising your trades will also help you to refine your trading strategy and learn from any mistakes.
These are my useful tips. If you have any other, do share here.
For people nearing their 40s, it is the right time to consider an investment plan. It is important to have a retirement availing one. When investing, you need to make sure that the retirement plan fits in your budget while offering maximum benefits. You can also take the help of an online retirement calculator with pension indicators.
@Sandra Although PL India is quite old platform. But, with new and emerging brokers offering low cost models, the competition is tough. The investors and traders get more inclined towards discount brokers also as compared to full service brokers in India these days. Isn't it true? What do you say?
Fixed deposits are very popular fixed return-low risk investment schemes wherein an investor fixes an amount for a said period of time. No doubt, Fixed deposit or FD has been a highly preferred choice amongst people of India. And, this trend is being followed since decades. Do you agree to it?
Each one of us or our parents or grandparents might be having an FD for sure. Since this has been regarded as a safe investing option giving fixed returns over the years.
Now, depending on the bank policy, a fixed deposit can be opened as:
Cumulative Fixed Deposit (Paid at maturity)
Non-Cumulative Fixed Deposit (interest paid on regular intervals)
Interest rate for fixed deposits depends on RBI policy and bank notification. It usually ranges from 6-8% p.a. (pre-tax return). This may be slightly higher for senior citizens.
Tax Saving Fixed deposit: In case the investment under this scheme for a period of 5 years and more, then the individual can claim tax exemption benefit under Section 80C up to Rs.1.5 Lac of Income Tax Act.
Recurring deposits are again fixed return-low risk investment schemes wherein an investor agrees to deposit decided sum of money on a monthly basis. This is very popular scheme in India wherein Indian families save some amount on monthly basis.
@Ishu I always get this question: when should I start investing? And I always answer the same as Warren Buffet says "Start investing as early as possible to start reaping the benefits at the right time”.
The decision to create your investment portfolio is based on permutation and combination in between risk and returns. There is always a set of mixed options to choose to create your own investment portfolio.
And, the one that fulfils your goals is the "best investment" for you.
@surendranathm Liquid funds is a good option for short term investment in India. Just that, you need to put money in the right kind of mutual funds so as to get good returns. Liquid funds are easily converted to cash whenever required. But, not to forget, these carry some amount of risk. So, be very careful while investing.
Getting 15% annual return seems a bit unrealistic that too in a very short period. I think stock market may give that much return but that's very very risky. And, there's no guarantee to earn profits only in stocks unless you are a stock market expert.
"Mutual funds" might be a better way, but that too may not given you the desired return of 15% p.a in a short span of time.
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