Young professionals need to start investing early in order to be better prepared for a rainy day. Here are few options you can opt:
You may either keep a small amount in fairly liquid interest bearing or deposit a certain amount in a public provident fund (PPF) account. Alternately, for those looking at long-term investment, investing in real estate may be a good idea.
During the early stages of your career, it is understandable that you may not have large investible surpluses and hence obtaining real estate may not be possible. However, this is one investment that you should make as soon as you can afford to make the down payment and pay the EMIs.
For investing in equity, you would do well to find a good broker who will not only buy and sell on your behalf but will also be a source of sound advice on where and when to invest.
If you are employed, a certain portion of your salary is probably already being invested in a provident fund account through your employer. Investing in PPF is an excellent way of saving, which also gives a tax deduction. PPF requires one to deposit a sum between Rs 500-1,00,000 every year, for a minimum of fifteen years. The PPF account currently earns an interest rate of 8.8 per cent per annum, compounded annually. The entire interest earned is exempt from income tax under section 10 of the Income Tax Act, without any limits.
Not to forget, the particular fascination Indians have for buying gold. Indians consumes more gold than any other country. Young professional can easily invest in small amount of gold. Indian government has launched new gold investment plans. The Prime minister of India, Narendra Modi launched three gold based financial schemes ahead of the Diwali festival, here in New Delhi today under the banner of “Swarna Bharat” (Golden India) scheme. These schemes aim to monetize the idle gold lying in the vaults of Indians across the country and at the same also issue gold coins and bonds. This scheme also targets to reduce the amount of gold that is imported and smuggled into India every year by recycling the existing gold held by consumers to Jewellers and Mints.
The 3 Gold Schemes that were launched as part of Swarna Bharat are:
- Indian Gold Coins
- Gold Monetization Scheme
- Sovereign Gold Bonds