Have you ever thought about planning your retirement? Retirement can be a phase of life, wherein, mostly we end up regretting our mistakes in life. The biggest remorse that you can face during retirement is a shortage of funds. An age where the mind and body are not capable of working and has life dependent on pills, a financial shortage can be an unpleasant and an unwelcome guest. Secure investments can help you out during your old age and keep you well-funded. Hence, it is important that you keep planning your retirement irrespective of your age.
Most of the times, people are rather confused about the source of investment they would want to park their funds in. For an amateur investor, it would be advisable that you choose those sources that offer risk averse returns and investment security. With the fall in the bank’s FD rates, here are the ones that might actually be beneficial for the new and young investors.
- Debt funds: Debt Fund is a type of mutual funds which can be used to invest in sources like bonds and treasury bills. These are high risk involved investment; there are no limits on the maximum or minimum investment. You can liquidate your investments any time you prefer. You need to have the proper market knowledge to invest in Debt funds. Without proper knowledge, the investor might not gain the desired or expected returns and even end up losing your invested capital.
- Post office Schemes: Post office schemes are government curated investments and can be availed from the nearest post office. It is among the safe investment options offered, but they come with a major drawback of lock-in-period which starts from 6 months. During this lock-in-period, you may not be able to withdraw your deposited sum. If you wish to withdraw your invested capital, you will have to go through a long procedure and will receive a deducted amount from your actual investment.
- Corporate Fixed deposits: Fixed deposits are one of the most sought investment solutions in India; but due to the economic conditions of the country, the Reserve Bank of India (RBI) has revised the FD Rates. The low FD Interest rates have made the keen and eager investors reconsider their decision for investment. As the banks follow the rules laid down by the RBI they have lowered their interest rate. As a result, the corporate FDs gained recognition. The corporate FDs are offered by the Non-Banking Financial Companies (NBFCs). The NBFCs are not under the regulation of the RBI, due to which the Interest rates on corporate FDs are much higher than the banks. There are many NBFCs that have high-security ratings, which serve as a proof for the investors that are much concerned about the safety of their investments.
When investing any source of investment, you need to make sure that you check all the terms and conditions related to it. It is important that you consider all the aspects of investments. To save your time and energy, you can take the help of corporate FDs they provide better returns, do not have a lock-in-period and offer security for the invested amount.