Posted On: 2022-05-02 16:12:12
Thinking of the future, what comes first to your mind? Is it something like- "How would I look when I turn 60?" or something related to financial stability? Most people in India think about their retirement and about their families that may or may not be dependent on them. Other things include: a house, car, getting married or even starting up a company.
According to a survey by PGIM India Mutual Fund, 51% of urban Indians have not established retirement plans, while 49% have financial plans in place.
What has this 49% population done in the name of financial planning?
Savings, investments, stock trading, and bond purchases are all possibilities. And the digital era has introduced some new digital ways to aid financial planning.
Let's look at some strategies for saving and investing that will help us secure our future.
1. Mutual Funds
One of the prominent investment options in India, mutual funds are an excellent long-term investment strategy since they provide substantial returns on investment. It is a market-linked investment alternative, which invests money in various financial instruments such as equity, debt, stocks, money market fund, and much more.
Returns are calculated based on the fund's market performance. Even while mutual fund investments have a greater risk profile, they provide much higher returns when compared to other top investing options.
are few of the benefits of the mutual fund.
2. Bank Fixed Deposits (FDs)
Fixed deposits are exceptionally well known fixed-pay venture choices. FDs, as their name suggests, provide fixed returns for the course of the investment. Profits are paid on a monthly, quarterly, or annual basis, depending on the bank's policies.
An FD account allows you to invest a large sum of money for a set length of time at a specified rate of interest. You receive the lump payment, plus interest, at the end of the term, which is a good money-saving strategy. Fixed deposit accounts come with a variety of interest rates.
are some benefits of Fixed Deposits
3. Government Bonds
A government bond is a debt instrument issued by the country's central and state governments to fund their needs while also regulating the money supply. When the government requires funds for infrastructure development and for financing government spending such bonds are often the answer. Thus, the government will sell bonds to the public, inviting investments.
The government will pay back the principal amount and interest as per the clauses mentioned in the bond at the specified maturity date. The government of India issues bonds under the supervision of the Reserve Bank of India (RBI).
The RBI Taxable Bonds have a tenure of 7 years and offer an interest rate of 7.75 per annum. These bonds are furnished in Demat mode only and are accredited to the Bond Ledger Account (BLA) of the investor.
4. Trading in the stock market
A stock market is a place where shares of companies are bought and sold by the participants (buyers and sellers of stocks). The participants can be investors and traders who seek profits over the short time or in the long run.
Once new securities/ have been sold in the primary market (where shares are created), they are traded in the secondary market—where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon.
Some stocks pay regular dividends (a given amount of money per share of stock someone owns). The other way investors can profit from buying stocks is by selling their stock for a profit if the stock price increases from their purchase price.
are some of the benefits of trading in the stock market long with profits.
5. Cryptocurrency
Cryptocurrency has become extremely popular over the past few years. These are digital assets people use as investments and for online purchases. You exchange real currency, like dollars, to buy “coins” or “tokens” of a certain kind of cryptocurrency.
Cryptocurrency is swapping your money in a new country.
It is exchanged person-to-person on the Web without a middleman, like a bank or government. It’s like the Wild West of the digital world but there is no marshal to uphold the law.
Cryptocurrencies are based on something called blockchain technology. A blockchain is like a really long receipt that keeps growing with each exchange of crypto. It’s a public record of all the transactions that have ever happened with a given type of cryptocurrency.
Above are some of the benefits of trading cryptocurrency.
Types of cryptocurrencies in the world market:
Concluding it...
These are a few ways out of many that can be useful for your financial planning and management. With a financially secured future, one can surely focus on other goals in life that need a good amount of funds. Investment and savings help lead a better and smoother way toward those goals.
These methods are majorly for long term investments and financial needs in the long run. Yet when emergencies show up like medical bills, funds for higher education, and the like, one can opt for fundraising their cause. Filaantro is one such trustworthy, online crowdfunding platform that raises funds for all and every cause that one truly believes in.
With a campaign manager supporting you, easy withdrawals and a user-friendly interface, Filaantro is here to help anyone in need.
Author: Anjali Patel
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