What are best investment options for salaried person in India?
Guest last edited by
@prateek I too have heard that mutual funds give good returns, if we invest for longer duration. Sometimes there are too much fluctuations in market. But, one needs to be patient enough to get desired returns.
On the other hand, Stocks seem too risky. For salaried person, I feel firstly go for safe investments like PPF and FD. Then if you have excess you may try mutual funds according to risk taking capability. Avoid making too many risks initially.
Mohit Chauhan last edited by
ULIP's are Unit Linked Insurance Plans which are publicized as combo offer of insurance and investments.
Ideally, the two goals i.e. insurance and investments should be separated from each other. Insurance is risk coverage of mis-happening and investment is wealth creation. The two should be treated differently.
If you are looking for insurance, Its better to get a term insurance and invest rest of the amount in Mutual Funds or any other saving instrument which you are comfortable with.
Also Post Office Savings Schemes are good, they offer higher rate or return, but problem is accessing their services, which are not completely online.
Yes, I agree. These are great ways of investing while you're earning. I would like to add that the stock market is also another great way to invest. All you need to do is open a demat account and a trading account with a registered broker and you are good to go.
ftForumMod last edited by
@mohit-chauhan mutual fund investments are a way of investing into the stock markets only
prateek last edited by
Seems you are trying to make big money in quick time. Hope this happens for you.
As for most of us i.e. people I know, trading in stocks is more like playing with fire.
Its better to stay away from it if you are investing for short term.
Ishu last edited by
@mohit-chauhan @prateek Yes, Stock market seems to be a lucrative option. But, that's actually very risky.
So, I also won't probably add direct stock investing as the best option for salaried individuals. Being a salaried person, one can try out other available investment options. Why take too much risk initially?
If you have started a new job then go for safer options. Once you have a fairly good earning & can afford bigger risks then only try riskier options. If you still feel like exploring stock market, investing in mutual funds still seems to be a less riskier way. Mutual funds also have risks attached. But, if you plan and invest smaller amounts like SIP or Systematic Investment Plan, then you may place yourself in a much better position.
Anamika last edited by
@ishu Hey, What about investing in a house? This can also be considered as one of the best investment option. All persons whether salaried or others wish to have a house of their own. So, if we can start saving and put some amount in home investment, that can be a good idea. You can also get home loans to support it further. What do you think about it? Am I correct in saying so? Any views on it.
Anubhav Sharma last edited by
Hey, investing in house requires a big lump sum amount. A salaried person having a small basic salary can't afford it. We have to rely on home loans for that. Then we have to pay EMIs including interest.
So, I don't feel this is the best investment. On personal level, having a house feels good. But, we should go for it once we have extra savings. Don't you think so? Before that, we must keep some money as emergency fund and in other investments.
LandPel last edited by
Most of the salaried persons in India are confused about 'Where to invest?'. The option provided in the article by the writer are good and very safe but investment can also depend upon the interest of the person. Long term investment can certainly help the person in future and the amount of risk involved is also low.
Rishabh last edited by
@landpel Hey, its not confused rather you can say most people are actually unaware of the different investing options. This unawareness leads to confusions. So, there needs to be more awareness on financial planning.
Ishu last edited by
@prateek Hi, I too agree to your point that in mutual funds: the more time you stay invested, the probability of good returns increases. In fact, I believe that one has to stay calm, not to panic on market lows and wait to cash in better results. Its normal human tendency that once market is low, we start withdrawing our investments.
But, I think a bit differently, one should wait a bit, analyse the market trends and try to lower losses.
For a salaried person, I think starting a SIP in mutual funds with a small amount can be a great idea. That doesn't burden his pocket plus he doesn't need to dive directly in stock market. So, dual purpose is solved. What do you think?