Saving and investing your money is the quickest way to build long-term wealth. The most successful investors today didn’t achieve their impressive returns by hitting high numbers alone. They did so, by starting early and remaining consistent in their investments for over 30 to 40 years.
You can do this too. Sounds unreal, right? But guess what, it is not as difficult as it seems. All you need to do is stay consistent with your savings and investments. This can help you achieve significant returns just by investing from your salary.
In this guide, we will suggest the top 5 investment options where you can invest monthly from your salary and make substantial gains in the long run.
Fixed Deposits
Fixed Deposits (FDs) have long been a preferred investment for those seeking security and predictability. Recent adjustments to the Reserve Bank of India’s repo rate have made FDs more attractive by offering improved interest rates. A lower repo rate leads to lower interest rates on loans and higher interest rates on deposits.
Mutual Funds
Mutual Funds create a pool of money and invest in equity, fixed-income, and money market securities. Each fund is further categorised based on different parameters like market cap, growth, and value.
You can choose the categorisation based on your risk appetite. Starting a SIP in one of the mutual funds will help you embrace the habit of saving and build financial discipline. You can do this by providing a standing instruction to your bank.
Equity
You can choose to invest directly in the stock market. Equity, as an asset class, is one of the most popular market segments. With aproper fundamental and technical strategy, you can invest in the equity markets regularly. It is one of the best investment options that exist and can lead you to amass great wealth over time just by investing in NIFTY 50 or SENSEX regularly.
National Pension System
The National Pension System (NPS) is an excellent choice for retirement planning. It offers a balanced mix of equity, fixed income, and government securities tailored to individual risk preferences. The NPS also provides tax benefits under Section 80C and 80CCD, making it a tax efficient investment. Depending on their risk tolerance, you can choose from a variety of asset classes within the NPS.
Since it’s a retirement scheme, you can redeem 60% of your funds when you are 60 and get the remaining 40% as annuities.
