It is the tax saving time. The time has come when people are locking their investments to save tax. Sachin Karpe, who used to be a financial advisor once, will give enlighten on some investment tools.
PPF or Public Provident fund: This is one of the most secured forms of investment tools. With an annual interest of 8.7% which in non-taxable, the money saving caliber increases. Qualified for tax saving under section 80c, this tool is safe and popular. One could save upto 1 lakh in a year. One can withdraw money from it only after 15 years.
FD or fixed deposits: Lot of banks now offers fixed deposits at attractive rates. To be able to avail tax benefits, one needs to save for atleast 60 months or five years. Although the interest is taxable, it is healthy tool to meet your short term financial goals. It can also be extended further, observes Sachin Karpe.
Life Insurance: Your and your family’s security is also very important. Life insurance policies not only cover you for life but also offer attractive returns. While buying it, however, the focus must remain on the insurance part and less on investment par, tells Sachin Karpe.
The first step to successful investing is figuring out your goals and risk tolerance – either on your own or with the help of a financial professional. There is no guarantee that you’ll make money from your investments. But if you get the facts about saving and investing and follow through with an intelligent plan, you should be able to gain financial security over the years and enjoy the benefits of managing your money.
Secondly, All investments involve some degree of risk. If you intend to purchase securities – such as stocks, bonds, or mutual funds -it’s important that you understand before you invest that you could lose some or all of your money.
Last but not the least, Scam artists read the headlines, too. Often, they’ll use a highly publicized news item to lure potential investors and make their “opportunity” sound more legitimate. Always take your time and talk to trusted friends and family members before investing says Sachin Karpe
Markets sputter to a weak start, in the absence of any key triggers in the week to come, except for the flagging off of the earnings season, beginning 10th Jan when INFY and INDUSINDBK come up with how they have fared in the quarter ended Dec’13. The weekend too has had no surprises from the overseas (more…)