As a new employee, you are keen to both grow in your chosen career and increase your wealth for future security. While striving at your workplace can help you get a higher income, just saving money is not enough to beat inflation and provide for your immediate and future expenses. Additionally, you may also be starting a family or getting carried. So, look for investment options for couples or growing families and lead a financially healthy life. Here are 5 top investment options for you to choose from.
Save while getting guaranteed returns with this investment scheme, which is a must-have for any new employee. Get started by deciding whether you want to park your money for a longer tenor in a non-cumulative fixed deposit so that you earn regular interest payouts or if you want to access your fixed deposit on maturity via a cumulative FD that comes with a higher interest. In order to decide better, you can check the maturity amount for both using the FD calculator before investing.
Choosing to invest with an NBFC can give you higher FD interest rates than banks. For instance, Bajaj Finance offers Fixed Deposits with interest rates of up to 8.40%. You can also gain from an increase of 0.25% in the interest rate upon renewal of your fixed deposit here. Additionally, as an existing customer or a Bajaj Finance group employee you earn an additional 0.25% on your FD. This is just one way how Bajaj Finance maximises your returns on Fixed Deposits. The other benefits of this fixed deposit include online account management and easy investment, which you can start with amounts as low as Rs. 25,000.
When you are starting off on the employment ladder, you can still earn back lost funds and take a risk. So choose mutual funds for higher interest gains, which are linked to the market. You can also choose to invest in mutual funds through an SIP if you do not have a lump sum amount as you are a new employee. Top funds have generated 20% CAGR over 10 years making an investment of Rs.1 lakh worth Rs.6 lakh upon maturity. You can also acquire the help of a market expert who will assist you find the best mutual funds based on your risk appetite.
The National Pension System is a government-sponsored investment that will help you gain guaranteed returns in the form of pension. Additionally, you can claim contributions made to this scheme as tax deductions. There are also extra provisions that add to the existing limit of Rs.1.5 lakh under Section 80C of the Income Tax Act. This allows you to claim an additional amount of Rs. 50,000 as tax deductions under Section 80 CCD (1B). You can also ask your employer to contribute 10% of your salary towards this scheme each month by altering your existing salary structure.
You can also invest in another risk-free investment such as the Public Provident Fund. You can avail this investment via a bank or post office. Enrol for a PPF account for a minimum tenor of 15 years. Here, you can deposit funds into your PPF account monthly or as a lump sum once every financial year.
You can also avail a loan against your PPF investment in case of emergency or withdraw from the funds you save in your account to fund urgent needs from the 7th year of your investment. Additionally, the interest earned and the amount you save in one financial year towards your PPF investment is tax-free. Also, you can claim tax deductions for your contributions of up to Rs.1.5 lakh made towards PPF during one financial year, under Section 80 C of the Income Tax Act.
As someone who is just starting out on your career path, ensure you plan by keeping real estate investment in mind. Since the price of property is ever increasing, this can be a lucrative investment for you. Not only can you earn from a property’s resale value, but you can also earn regular income by leasing out the property for rent.
Investing in real estate in urban areas and metro cities can help you gain both a higher resale value and a higher rent from your tenants. However, it is essential to ensure you have enough funds for such a purchase. Even if you take a home loan, you will need to ensure that the loan is successfully paid off for the property to be a real investment and not burden your finances or damage your credit score.
Use these investment options to invest in a better tomorrow for your loved ones and yourself. Remember to carefully plan your financial strategy in advance right in the beginning of your career for the best gains.