What is the smart investment option after COVID 19?
For investors who are not in favor of taking the risk for them, the FD can appear as a congenial option.
The year 2020 was a roller coaster journey for the investors because of the pandemic impact. Well, there was lots of confusion and dilemma regarding the investment. As you know that Covid 19 invoked recession because of which people were pretty unsure about where to invest. Indeed, the year 2020 was a year of depression and hopelessness, because investors failed to make the right predictions on the return. However today we will guide you on the smart investment alternatives that can benefit you after COVID.
Start with Sovereign Gold Bond
If you enquire about the investment that offers a lucrative hedging option against the inflated market, then gold tops the countdown. But the question is should you invest in the physical form of gold or Gold bonds. Well, then the answer is that you should consider the Gold bonds issued by the Reserve Bank of India. Now here are a couple of reasons that justify your investment.
Firstly, the rate of interest in having the gold bonds count to 2.5 percent along with the appreciation in the gold price.
Secondly, no need to ponder on the tax for redeeming the bond after the completion of its term.
Thirdly, investors don't have to worry about its storage like the physical gold.
Truly, it is going to be lucrative as the rise in gold rate in the future will boost the golds price
Cling to multiple Fixed deposits
For investors who are not in favor of taking the risk for them, the FD can appear as a congenial option. But here investors need to keep in mind that the investment should be in multiple deposits instead of investing in one big FD. It is good because most of the banks as per the RBI regulation offer an interest ranging from 5 to 5.57 percent. Now once the economy faces inflation, the interest rate will experience a boom. The best would be if you distribute your funds in different banks as the different maturity times will let you enjoy multiple interests and good liquidity as well.
National Pension Scheme
You can always look for investing in a National pension scheme as it is managed by PerDa. Certainly, it is easy to maintain because to keep up the account you only need to pay an amount ranging from Rs 1000 to Rs 6000. It is going to be a privilege because it is a mix-match of Fd, equity funds, corporate-type bonds, and liquid money. Note that the NPS scheme is the best for salaried employees. Also, keep in mind that the invested amount will get matured only after retirement.
Short Term Investment
Investors after the pandemic are unwilling to invest in shares for longer terms. Well to meet their goal, the Security Exchange Board of India came up with short-term investment options. And these options frees one from the tax burden. Also, get an opportunity to get liquid money as and when needed.
Small Savings Are Best
As per experts, the central authority proposed several small investment schemes such as the PPF, post office. The sought-after schemes are designed as per the needs of the investors. Well, it can serve a diverse purpose from education to marriage. Those investors who strongly deny the idea of a mutual fund can certainly opt for these small investment options.
If you search for a safe investment scheme that is designed to stand upright amidst inflation, then obviously it is the equity investment. You can make considerable capital but have to follow an organized equity investment approach like investing in SIP. Remember that if you invest for a longer period, then certainly you are going to enjoy a secured future.
Public Provident Fund
For those who think that long-term investment is the real catch then they should plan to invest in PPF. Well once you invest in this, you won't be able to withdraw the amount till the 6th year.
Considering the negative effect of the pandemic, it is always advisable that the investors should refrain from investing in mutual funds. Therefore before saying yes to investment schemes, just consider the financial objective and the risk you are ready to take.
Edited By Team CLIQTAX
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