Global financial turmoil but you still need to make an investment to save on the tax . relax....investment is for one's good . What is more important is how you plan for your investments .Often one does not think of investment till the end of January and blindly decide on making an investment in february to produce the investment proofs to the finance department which is wrong , you should know where to invest your hard earned money , you have worked overtime through out the year and heard everything what your boss has to say .. is'nt it foolish to invest this money to some financial product blindly ....while all financial products fetches some return what is more important is to asses your financial health and make a right investment that suits you.
Following are some of the options available to save tax .
1.Life Insurance Premium (Annual premium paid)
ICICI one of the top private insurers.
You can apply for a loan after three years .Lot of housing finance companies are ready to accept this as a lien.
2.PPF (Investment for 15 years)
Anybody can open a PPF , being a part of Employee PF cannot disqualify you from opening a PPF .You can open a PPF account in the name of your spouse or kid also and create tax free funds.
There is a lack of liquidity and lenghty lock in period in this product.
PPF returns are very high ,if you invest 8000 this year , you will earn 8% of 8000 which is
640 , you will earn interest on(8000+640+ additional deposits) the following year - interest compounded annually.
3.Unit linked insurance plan UTI/LIC-MF
Stock market showing signs of volatility ,this plan is best to generate wealth over period not less than 10 years.
Part of the premium you pay goes towards the sum assured (amount you get in a life insurance policy) and the balance will be invested in whichever investments you desire - equity, fixed-return or a mixture of both.
Suitable for upper class i would say .... i mean thats my opinion.
4.NSC 8th issue ( 6.5 Years in lock in period)
If you are a middle class IT guy and not sure if you would lose you job this year and if you have a mother at home who falls sick often , if marriage is on cards this year , go ahead and invest in NSC. You can pledge NSC the very next day after you make an investment .Returns are low and the lock in period is high , but liquidity is very high , these certificates are as good as cash . High liquidity factor is tempting most of the middle class men to invest in this product .This is one of the financial product of my portfolio.
5.Housing loan principle amount repaid and
Interest paid on housing loan upto 1.5 lakh .
Property is a safe and secure investment.
Best for the people of 30 -35 agegroup .
6.Equity Linked Mutual Fund (Lock-in period is 3 years )
Liquidity is low , while the risks involved in these bonds are high (but not very high)
Unlike NSC , these bonds cannot be pledged for any loan.Money can be withdrawn only after the lock in period .
7.Rent paid to the owner of the house.
Any investement depends on the present financial health of an individual .
How to analyse your current financial health.
1.You age.
Lower age people can consider high risk investment options like Equity linked investment options.
2.Are you self dependent , how many dependents you have
Single : Mutual Fund
Married : Insurance (Liquidity factor is more important , invest in low risk options which has high liquidity)
3.What are your current financial needs ?
Housing , children's education , daughter's marriage ?
4.Current savings are not sufficient to keep up the pace with inflation, you might need more money soon (Liquidity is important while considering any investment option)
Asses your current salary and predict the hike which you might expect , if you are not expecting a hike at the same time inflation is expected to increase ..concenterate more on your savings . Low risk and high liquidity investment options should be considered
So all the best for your investment plans ,and invest smart!
Following are some of the options available to save tax .
1.Life Insurance Premium (Annual premium paid)
ICICI one of the top private insurers.
You can apply for a loan after three years .Lot of housing finance companies are ready to accept this as a lien.
2.PPF (Investment for 15 years)
Anybody can open a PPF , being a part of Employee PF cannot disqualify you from opening a PPF .You can open a PPF account in the name of your spouse or kid also and create tax free funds.
There is a lack of liquidity and lenghty lock in period in this product.
PPF returns are very high ,if you invest 8000 this year , you will earn 8% of 8000 which is
640 , you will earn interest on(8000+640+ additional deposits) the following year - interest compounded annually.
3.Unit linked insurance plan UTI/LIC-MF
Stock market showing signs of volatility ,this plan is best to generate wealth over period not less than 10 years.
Part of the premium you pay goes towards the sum assured (amount you get in a life insurance policy) and the balance will be invested in whichever investments you desire - equity, fixed-return or a mixture of both.
Suitable for upper class i would say .... i mean thats my opinion.
4.NSC 8th issue ( 6.5 Years in lock in period)
If you are a middle class IT guy and not sure if you would lose you job this year and if you have a mother at home who falls sick often , if marriage is on cards this year , go ahead and invest in NSC. You can pledge NSC the very next day after you make an investment .Returns are low and the lock in period is high , but liquidity is very high , these certificates are as good as cash . High liquidity factor is tempting most of the middle class men to invest in this product .This is one of the financial product of my portfolio.
5.Housing loan principle amount repaid and
Interest paid on housing loan upto 1.5 lakh .
Property is a safe and secure investment.
Best for the people of 30 -35 agegroup .
6.Equity Linked Mutual Fund (Lock-in period is 3 years )
Liquidity is low , while the risks involved in these bonds are high (but not very high)
Unlike NSC , these bonds cannot be pledged for any loan.Money can be withdrawn only after the lock in period .
7.Rent paid to the owner of the house.
Any investement depends on the present financial health of an individual .
How to analyse your current financial health.
1.You age.
Lower age people can consider high risk investment options like Equity linked investment options.
2.Are you self dependent , how many dependents you have
Single : Mutual Fund
Married : Insurance (Liquidity factor is more important , invest in low risk options which has high liquidity)
3.What are your current financial needs ?
Housing , children's education , daughter's marriage ?
4.Current savings are not sufficient to keep up the pace with inflation, you might need more money soon (Liquidity is important while considering any investment option)
Asses your current salary and predict the hike which you might expect , if you are not expecting a hike at the same time inflation is expected to increase ..concenterate more on your savings . Low risk and high liquidity investment options should be considered
So all the best for your investment plans ,and invest smart!
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