Consumer prices in India increased 5.21 percent for December last year.
It doesn’t matter where you live, you would probably see that Inflation in increasing at such a high pace. If we see on ground basis then inflation is increasing on an average of 2% per month. This means a good you bought today will be 2% more costlier in next month. Inflation rate is making highers high and to maintain the life style you living today will not be that easy in coming 5 to 7 years. To carry the life style in future, it is very important that even with inflation your money should grow.
The best way through which your money can grow is to invest it. Its very important to canalized your money in RIGHT investment plans. The ideal investment which every lay man will think first is the FIXED DEPOSIT. Let me tell you FD’s are the most dead investments. Its like Money invested in FD’s are growing but its not able to beat the inflation rate. If your money is not able to beat the inflation rate then that is almost like of no use.
Every one is not expert in investment planning. Here i am going to give you the basic guide which will help you to invest your money more smartly.
There are soo many mutual funds schemes are available now a days. If you don’t have stock markets knowledge but want to invest in stock market then mutual funds are the best. You can start it from your bank. Mutual funds now a days are growing very good.
Money market funds:
This also a kind of mutual fund. It offers more returns then saving account without compromising on liquidity. This fund invest in stock market but with the primary motive to keep your invested capital safe. They invest in extremely short term fixed income instruments.
All most all of us Know some what about stock market and even know that it gives a very good returns but its not that simple to understand the and analyse the stocks and find out where to invest. All you can do is simply take out the list of blue chip companies or market leader, invest in them and let then grow.
Public Provident Funds:
Its saving cum tax saving instrument. As government is involved so there is almost no risk. You get a good 11% post-tax return and the only catch here is lack of liquidity. If you have ideal fund available which you wont need for 5-7 years the this is the best option.
Post office saving scheme (POSS):
This instrument is popular because it yield more returns then bank FD’s.The monthly income plan is suited for those having regular income needs. In this also there is NO risk it comes under government.