Investing ideas
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What are the safe ways to invest money with good returns?

Everyone has their own way of investing money. It also depends on the risk taking capacity of the person. But here we will talk in terms of a defense person or a salaried person. How should a salaried person invest?

First of all, it is very important to inculcate the habit of saving. For this, you can invest in any such plan in which some amount has to be deposited every month.

Salary person should save up to 30% – 50%. Now let's talk about where to invest this savings. For example, if someone wants to invest Rs 20000 per month. Should I invest the entire amount in AFPP or PPF? Because it also has fixed returns which are higher than bank FDs and can be withdrawn anytime. Since the returns are fixed, there is no risk.

But investing the entire amount in AFPP fund is not good in terms of returns. The disadvantage in this is that you cannot withdraw the entire amount at once. Only 75% can be withdrawn at a time. The interest also ranges between 8% to 9%. Whereas the inflation rate is only 5%. Due to which the value of money only increases by 3% to 4%.

Salaried person should invest in different places, in which the risk is also average and the profit is also good.

Everyone knows that without taking any risk, you cannot increase your money at high speed. So it is necessary to take a little risk. Here risk means mutual fund, SIP or equity market. In which the share price keeps on going up or down.

You can plan of investing the money in the following way.

  1. Invest around 50% of your savings in tax saving schemes. In which mainly AFPP fund, PPF and Sukanya Samriddhi Yojana are there. This investment will give you 8 to 9% returns with guaranteed. Along with this, it will also help in tax saving.
  2. Divide the remaining 50% into two parts which are 20% and 30%. If your risk taking ability is high, then you can invest 30% in SIP equity in which returns are available in the range of 13% to 15%.
  3. The remaining 20% ??can be invested in debt mutual funds. In which the risk is very less and the returns are 7-10%.
  4. Keep in mind that the money to be invested in SIP should be kept invested for as long as possible. For at least 5 years. Do not withdraw the money invested in SIP in the first 2 years at all. Invest as much money in SIP as you can keep for a long time.

If it is also important to know about the benefits of investing money in this way. If you invest money in this way then the risk of loss is negligible. Because on 50% savings you are getting risk free returns.

Even if you get less returns on the remaining 50%, then AFPP gets covered by the returns from the fund.  For your information, let us tell you that there are chances of loss in SIP and mutual funds only when you invest them for short term. The chances of getting less returns from AFPP in investing for a long time are very less.

On the other hand, if you normally get even 13% returns from Mutual Funds or SIPs, then your savings grow very quickly. Due to which the overall returns also increase. In this way you can invest your savings.

Disclaimer :- This is personal opinion of the writer which may differ from yours. You must do good research before investing your money.

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