Investments

    As a usual routine of any article / blog / essay let's see a description about the topic. Once you utter this word (investment) first thing that crosses the mind is tax exemption. What is investment and how frequently we do that? On day-to-day basis we do lot of investments! A smile at your Friend, a tip to the security, a gift to your spouse.... etc., 

   Though there are N number of investments, here I am going to discuss only about investments that'll fetch you monetary returns. I can hear the question why should I invest. If you want learn it the hard way wait for comb from the nature (you'll get it once you are bald). There is another way - borrow the comb i.e. learn from other's. 

   Let me share my experience: I never had any plan for doing investments and had a big wish list - a bigger car / SUV, a bigger TV / Projector etc., until that day when I gave my car for service. My car is in good shape and it was just a regular service. Hence, i was prepared for a small bill. When the bill came I was shocked to see a bigger figure in it. Though I managed to pay it a thought crossed my mind "post retirement will I be able pay such bills?" 
     Okay got a reason to do investments how much should I invest and in what? This is a very common question of every salaried person. We have a limited scope for this after meeting our expenses. A small investments will fetch small returns - insufficient to meet the post retirement expenses! And we cannot allocate a big amount from our salary for investments.  That's precisely why we have to be choosy. 

   Unlike old days we don't have a common lifestyle, requirements / commitments. Hence, never go for a common idea for investments. The other common mistake is clubbing Insurance with investment. If you ask me insurance should be your first priority when compared to investments. When you go for a combo, you'll get insurance of lower value and a small return. Never investment all you have in single option. Gold & real estate which had consistent rise had a sudden fall in the last financial year. Similarly all the investment options will be in the cycle.  Investing in multiple options will help you to keep a tab on the losses.

   A non risky option would be do invest in RD's but don't expect huge returns as the mantra of investment is "low  risk low returns, high risk high returns".  If you are ready to take risks share market is the best option. What if you want to enjoy both? Systematic Investment Plans (SIP) is the solution for the same.  Companies allow you to invest as small as Rs. 500 a month. A long term investments in SIP will fetch you better returns. If you are planning to invest multiples of thousands do that in multiple companies.

   Other best options are the PPF schemes offered by banks, also offers tax exemptions. The new Scheme launched by our PM - Sukanya Samriddhi Account is also a good option but is available only  for female child.
Once make up your mind towards this you will find the best options to make a good future.
All The Best!!!