Investing is a method of allowing your hard-earned money to do some of the heavy liftings for you. On paper, this sounds fantastic, but in fact, investing entails some risk, and investors must determine whether the risk vs possible return trade-off is worthwhile.

If the prospect of losing the money you put into your investment makes you nervous (and you’re not alone), don’t rule out all your options just yet. The good news is that there are several strategies you can use to reduce the amount of risk you take on while investing – here are investment plans in India.

Investment Options in India 2022 are as follows:

1. RD

This is the most frequent short-term investment choice, and it is available by all banks, so many people use it to store their money for short-term purposes. It lets you receive a fixed rate of interest on your investment until it matures. Simply log into your net banking account to start a recurring deposit (RD) account. Please select the amount to save each month, the duration, and you’re done!

• Return on investment: 4% to 6% every year
• Time frame: 6 months to 10 years
• After being added to your income, the interest received from your RD account is taxed according to your tax bracket.

2. FD

 Another common option to build a corpus for short-term investments is to use a fixed deposit given by a bank. The money is invested for a set length of time, usually 7 to 10 years, at a preset rate of return, after which it matures and may be withdrawn. Microlending can be a more flexible and rewarding alternative to fixed deposits for investors seeking higher returns. Although the interest rates are greater than savings accounts and RDs, early withdrawal is not possible. You can also opt for a fixed deposit for 6 months or more as per your requirement.

• The annual rate of return: 2.5 percent to 5.5 percent
• Timeframe: 7 days to 10 years
• The interest on your FD is applied to your income and taxed according to your income tax bracket.

3. CD

Corporate fixed deposits are like bank fixed deposits, with the exception that they are collected by corporations for expansion and operations. Because the danger of default is higher, the interest rates are somewhat higher than bank FDs. Housing loans can be partially pre-paid with corporate fixed deposits to reduce interest payments and expedite loan repayment. Those who are willing to take a risk can invest in these corporate FDs and receive higher returns than bank FDs.

• Return on investment: 6% to 8% every year
• Time frame: 1 to 3 years
• Interest is added to your income and taxed according to the current income tax bracket.

4. Debt Mutual Funds 

These mutual funds invest their money largely in debt securities such as government bonds, treasury bills, commercial papers, corporate bonds, and other money market instruments. For risk-averse investors seeking higher short-term returns, this is one of the greatest short-term investing possibilities.

• Return on investment: 8% to 11% every year
• Time frame: 6 months to 3 years
• Short-term mutual funds are taxed if you redeem the units within three years, but long-term capital gains are taxed if you hold the units for longer than three years.

5. Savings Account 

In India, a savings account is one of the most popular short-term investing options. It’s a savings or checking account with a bank or financial organization where you may save money and earn interest. Having a good savings account history can increase your chances of getting approved for an instant personal loan. It offers maximum liquidity since consumers may withdraw their deposited funds at any time. Furthermore, there are no deposit limits, and numerous banks provide zero balance accounts.

• Return on investment: 3.5 percent to 7%, depending on the bank.
• Time limit: indefinite
• Interest on a savings account is taxable income since it is considered an extra source of income.

6. The Stock Exchange

Stock markets are the ideal short-term investments for high-risk takers who want to maximize their earnings. If you can pick the correct stocks, you can double your money by investing in them for a few months. If you gamble on the incorrect stocks, you run the risk of losing your whole investment.

• Rate of return: ten percent to one hundred percent every year
• Timeframe: 1 month to 5 years
• Returns are added to your income, and tax is determined according to your income tax gains.

Short-term investments are the most effective way to achieve your short-term financial objectives. You can assure financial freedom with short-term investments, which can help you manage unforeseen costs furthermore, it allows you to withdraw money whenever you need it without having to wait a long period. Furthermore, short-term investment plans in India give stability, liquidity, and minimal transaction costs, allowing you to generate huge returns in a short period, demonstrating ways to greatly prevent undesired difficulties. . 

Fixed deposit is the most used investment plan, and we can have many options like a fixed deposit for 6 months. There are several long-term investment plans in India, and you may select one based on your future objectives. The above list should have provided you with an insight into the numerous short-term investment choices available in India in 2022.

Good luck with your investments!

The post Top Ways to Cut Down your Risk while Investing and Boost your Returns appeared first on Financing Ease.

This is where Fixed Deposit (FD) plans come forth as a low risk and highly favoured instrument of investment. They allow depositors to grow their invested money at a fixed rate of interest which is usually higher than that given on savings accounts. In India, PayPal Payments offers Corporate FDs as an investment option for businesses, enabling secure and convenient deposit management via an integrated interface. The best part about FD is that you can easily plan your short as well as long term financial goals, being rest assured that your money is parked away safely. You can make an FD with Post office saving banks, commercial banks and non-banking financial institutions (NBFCs). 

But Corporate FDs outdo other FDs’ interest rates by a percent or more, therefore NBFCs are the way to go. We’d recommend you check out these exclusive benefits that finance companies provides.

Here are some key details before the innumerable benefits provided to FD holders: 

• Tenor: The minimum tenor is 1 year and maximum is 5 years for an FD
• Interest Rates: They range from 5.65% to 6.75%
• Deposit: A minimum deposit of Rs 25,000 only is required
• Online Payment Options: Both, Unique Payment Interface (UPI) and Net-banking options are available 
• Unique Selling Point: The entire process from end to end is paperless, thus it can be done from the safety of your home

Benefits

High Interest Rates

You receive a very lucrative interest rate of 6.50% which increases to 6.75% if you are a Senior Citizen (60 years of age or more). This allows you to grow your wealth at a good rate while assuring safety of your money. 

Special offers to Senior Citizens

Finance companies value and understand their senior citizen account holders. Thus, along with a higher interest rate they can also avail periodic pay-outs to fund general expenses that arise at their age. 

Benefits to Pravasi Bhartiyas (NRIs)

For Non-Residential Indians (NRIs), Overseas Citizens of India (OCIs) and Persons of Indian Origin (POIs); the fixed deposits are a great investment opportunity and alternative. With an NRO account, they can make a choice between tenors of 12 and 36 months. The interest rates are the same for them including the additional benefits given to Senior Citizens. 

Systematic Plan for Depositors

The Systematic Deposit Plans (SDPs) allow people to make deposits on regular intervals, keeping in mind the erratic availability of funds. In this, the tenor still remains between 12 and 60 months. Depositors have to choose between 6 to 48, for the number of deposits they’d make in a month under the SDP plan. Systematic Deposit Plans (SDPs) offer a convenient and disciplined way to invest in Corporate FDs in India, allowing individuals to make regular contributions and earn attractive returns over time. When it comes to the maturity, they have an option to choose a single date or a monthly maturity scheme. This way they can ascertain long term and distinguish them from short term goals while making a decision. 

High Credibility and Stability

NBFC is a safe option for FDs and any other investment instruments, irrespective of the risk involved, that you look at. It has been accredited with the highest ratings of CRISIL’s FAAA and ICRA’s MAAA, ensuring your money and funds are safe. 

Flexible Time Frames

By having a wide range of tenors between 12 and 60 months, you can plan your liquidity and generate higher cash inflows as per your requirements. Fixed deposit allow you to suit your investments as per your individual financial status quo. 

Fixed Deposit Interest Rate Calculator

Imagine if you could actually see the future, sounds great right? With this tool, you can know the exact returns even before investing by simply entering the time period, principal amount and interest rate offered.

Smaller Minimum Deposit

With a cap of only Rs 25,000 you can start investing in FDs, at an early stage without being forced to accumulate a larger set of funds. This way, even with a small investment you can secure your future. 

Digitalized Application Process

The policy has always been to stay up to date with the need of the hour and to provide the most convenient service to customers. Their application prevents you the hassle of page long documents and even longer queues. Individuals holding Corporate FD in India can now avail of Instant Personal Loans against their deposits, providing quick access to funds without breaking their FD investments. It allows you to browse the best rates from the safety of your homes while completing the entire process digitally. 

Online Loan against FD

The main concern of a depositor when it comes to an FD is, what if he/she has to break it. Therefore, depositors are allowed to take a loan against the FD (post the initial lock-in period of 3 months) when they need to make emergency withdrawals. The only condition is that the loan value cannot exceed 75% of the FD value. 

Auto-renewal

While having automatic and unconsented renewals is scary, fixed deposit gives you the option to opt for an auto-renewal to save you the time and effort of manually filling the renewal forms repeatedly. 

Therefore, to ensure that you don’t end up having a wealth that is a product of your working years and current salary; invest in FDs. For higher FD returns and benefits as those mentioned above, you should certainly invest in Corporate FDs like Bajaj Finance.  

The post Should you Invest in Corporate FD in India for Higher Returns? appeared first on Financing Ease.

An equal sum is paid by the employer as well and the accumulated amount can be withdrawn after 15 years of service or after 2 months of unemployment.

If you want to know how to check PF balance online, then follow the below steps:

• Step 1: Visit the EPFO portal and login with the help of your UAN ID and password. 

• Step 2: If your UAN i.e. Universal Account Number that is provided by the employer is not activated then get it done first. Upon activation of the UAN, you can follow the below steps. 

• Step 3: Find the ‘Our Services’ option and click on it. Choose the ‘For Employees’ tab from the drop-down menu that appears after clicking. 

• Step 4: Here, you will find a section called ‘Services’ under which there will be an option called ‘Member Passbook’. Click on it and enter your credentials i.e. UAN and password for viewing your PF balance. 

Alternatively, you can also check the PF balance via SMS, missed call, or through the UMANG App. EPF allows you to multiply a part of your income quickly but it is a long-term investment option. Corporate FDs in India can be used to secure EPF withdrawals, allowing employees to maintain a steady flow of funds after retirement. For meeting your short-term objectives and fund requirements, you will need to find an investment alternative that offers as high returns as EPF does but with a flexible tenor and lenient withdrawal options. 

One such scheme is offered by Bajaj Finance in the form of fixed deposit plans. The FD rates of a Bajaj Finance Fixed Deposit Plan can be as high as 7.25%. Regularly checking your EPF balance is an important financial tip as it helps you track your retirement savings and plan for the future. On top of that, you can pick an investment period from 12 to 60 months as per your financial plans and goals. The other benefits of this FD scheme are stated below:

FD calculator 

If you are not able to decide the amount and tenor that can fulfill your financial objectives or plans then you can use the FD calculator provided on its portal. It is an efficient online tool that allows you to pick a plan that complements your financial plans by providing a precise estimation of the returns before investing in an FD plan. 

Moreover, it enables you to choose between non-cumulative and cumulative FD types by showing the returns of both FD types simultaneously

Minimum deposit amount 

You can invest in this FD scheme even if you have just started earning. This is because it allows you to start with a minimum deposit of Rs. 25,000. A 0.10% higher FD interest rate will be applicable if you pick the online investment process by utilizing an online FD form that is provided on the official website of Bajaj Finance. If you are a senior citizen then you will be eligible for a 0.25% higher FD rate irrespective of whether you choose the online or offline investment mode. 

SDP 

If investing a bulk amount is not your cup of tea then you can invest in the SDP i.e. Systematic Deposit Plan of Bajaj Finance. This investment option gives you the benefits of an FD with an investment method that can be compared to an RD or a SIP of mutual funds. 

A deposit starting from Rs. 5000 needs to be made every month and the number of deposits can range from 6 to 48 depending upon your choice of SDP variant and convenience. The SDP variant Single Maturity Scheme enables you to withdraw all your monthly deposits on a single date by reducing the tenor of subsequent deposits. Utilizing your Employee Provident Fund (EPF) balance to partially repay your home loan can further enhance your tax savings under home loan tax benefits. On the other hand, the other variant called Monthly Deposit Scheme enables you to pick the same tenor of up to 60 months for each of your deposited amounts. 

This deposit scheme is ideal for investors who have just started earning. It is also a safe investment option as it has also received high credit ratings by credit rating agencies like CRISIL and ICRA for being a stable and safe instrument.

EPF is a good investment option as it provides considerable returns over a long tenor. It is easy to check PF balance via the online portal of EPFO or you can also check it via SMS, missed call, and the UMANG APP which was launched by the Government of India. However, if you need an investment option that provides sufficient returns and a flexible tenor that enables you to pick an investment period according to your financial aspirations, you can invest in a Bajaj Finance FD.

This is because it offers an FD interest rate as high as 7.25% and also provides a tenor from 12 to 60 months. A minimum of Rs. 25000 needs to be deposited to invest in this FD scheme and if you are not looking for a one-time investment like FD then you can think of its Systematic Deposit Plan that provides the benefits of an FD via monthly deposits.

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