Our earliest memory of savings is that the time we used to save money in our piggy bank. That was our first of our saving habits. Habits inculcated then, still exists – only responsibilities are mountainous and so is our savings. However, the big catch is how to go about planning the same is an important question. Because without planning, probably we’ll evaporate our funds, in one way or the other.
Why having a Savings Plan is necessary?
Having a savings plan is of utmost importance, and not just because of few facts mentioned of. Following is the list stating why you should save, and make it your priority:
- You can’t predict the future! Hence, assuming worst case scenarios and planning for them accordingly, at the same time balancing the current needs is the need of the hour.
- Rising Costs. Inflation is an unavoidable woe and worst is education inflation which is approximately 11-12% on year on year basis. Hence if the inflation is 6%, your savings should at least grow by at least that much %, so as to have a decent return.
- Money works for you! When you save your money in the right ‘piggy bank’ you make sure that you get not only inflation adjusted returns, but also extra. That extra is your gain, for which you can applaud yourself for.
- Peace of Mind. The best way to allocate and invest money is to allocate as per goals. When you know, you have an investment plan ready and have appropriate investments, or will be doing so in the continuous basis, you have your peace of mind.
Options for Investment for your ‘Savings Plan’
Saving options are plenty. You an choose the apt combination for your goal, depending upon the time horizon and the product in which you are comfortable investing, of course!
Consider the following products:
Corporate Fixed Deposits
Bank Fixed Deposits are perhaps age-old investment options and still favourite products of investment. However, there is a slightly different versions available – corporate fixed deposits (<link corporate FD>). They offer better interest rate
National Pension Scheme
Government sponsored pension scheme, it was opened to all sections. The scheme allows subscribers to contribute regularly in a pension account during their working life. On retirement, subscribers can withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.
RBI Taxable Bond
It is launched by RBI in 2003. The 7.75% RBI Bonds offers 7.75 percent taxable rate of interest over a tenure of seven years from the date of issue. There is minimum investment limit of Rs. 1000 and there is no maximum limit on investment in these bonds. Any resident individual & HUF can invest in these bonds (except NRI). Investing in these bonds is an attractive proposition for individuals who has the point of view of lock in interest payments likewise wants to ensures safety of principal. At the times when interest rates are declining, it is suitable time to consider this option as they are of highest safety and also provides higher interest to investors. To know more visit <link>
Public Provident Fund
PPF is introduced in India in 1968 by the Government with the objective to provide financial security to the salaried individuals who are working in the unorganized sector or self-employed individual. There are several significant reasons to invests in the Public Provident Fund, the major being is its EEE status. The former EEE status stands for Exempt-Exempt-Exempt, which signifies that deposits, returns and the maturity amount are tax-free. To know more, visit
Post Office Monthly Income Scheme
Most favoured invest option, post office monthly income scheme offers 7.6% yearly interest rate. You can invest in multiples of 1000, maximum being 4.5 lakh in single account and 9 lakhs in joint account holding. Nomination facility is also available. To know more contact us. (link)
National Savings Certificate
National Savings Certificate are an age-old investment option. Interest rate offered is 7.6%, compounded annually, however is payable at maturity. Minimum amount of investment is Rs. 1000, and thereafter in multiples of Rs. 100. Maturity is 5 years.
SIP Mutual Funds
Systematic Investment Plans or SIPs are modes of investment in a mutual fund scheme, where in you can purchase mutual fund units of the fixed price in regular intervals. This fixed amount gets deducted from your bank account at regular periods, which you decide beforehand.
It’s the best way of starting investing in equity market, and is one of the smart and easiest ways as well.
Further, with mutual fund SIPs, you can choose to pause or stop the SIP whenever and wherever you feel the need to do so.
To know more, kindly visit (link), to invest kindly ping us at 9582012572 (whatsappapi)
Peer to Peer Lending
One of the emerging ways of investing, in this form of investment, one person lends money to another person, thus cutting out the third party (bank) in between. One can invest via RBI registered platforms. One can choose to give loan depending upon the risk one can afford. For example, lending someone money who has low credit score will fetch higher interest rate but low security and vice versa. Contact us, if interested in investing in this product.
There are lot more products, other than the mentioned ones. This was a concise list. To know about more products, kindly get in touch with us for more details.
Apart from the investment products, one shout always go for health insurance, for medical emergencies.
How to Create your Savings plan?
It is very difficult to create a saving s plan all by yourself. An expert help is suggested and perhaps its must. Look for Certified Financial Planners (link), which can help you out in the process.
Start with writing down your goal, and then state how much amount you’ll needing in how much years for each goal. Then, how much you can afford to invest today. Choose high interest high risk funds for goals that are at least 10 years away. For goals which are nearer, choose debt options.
Wealthcare Securities have been advising about financial plan and mutual funds since the last 25 years. We can help you achieve your dreams and accomplish goals by not only designing a financial plan, but also will guide you as in how and where to invest as per your risk profile.
Modes of investment for your savings plan
We can choose to invest either in one go or as and when amount is available or choose to invest periodically, i.e., you can choose to invest lumpsum or via SIP.
Based upon your investment plan, Wealthcare Securities can guide you regarding the products, whether you should be investing lumpsum or via SIP.
Visit us at our office or drop a mail at firstname.lastname@example.org or Whatsapp at 9582012572.