Six Smart Things That You Can Do With Rs. 10,000
12 December 2018
- Invest in Equity Mutual Fund: Equity Mutual fund investments are a smart way to deal with spare money. You have the option to either buy with a lump sum or buy funds through SIPs (Systematic Investment Plan). In an SIP, you make monthly or quarterly payments which are directly debited from your bank account and used as an investment in your choice of mutual fund. The profit you earn will be tax-free if you sell off your holdings after a time span of 12-months. Such is the case under long-term capital gains. However, it is advised you select this course of action only if you wish to stay invested for at least 3-5 years to assist in reduction of risks. Investing in mutual funds is profitable if made for the long-term.
- Buy Some Shares: A beginner buying shares might seem like a huge leap for small legs, however, if you do your research properly then you have the perfect investment opportunity considering you have Rs. 10,000 in hand. Invest your money wisely, therefore, indulge in diversification. Creating a diversified portfolio reduces the chances of risk. The only risk you cannot eliminate with diversification is the market risk. To be a true player in the finance market, this is a risk you have to bear. Take the advice from a Technical Analyst as they are certified as well trained with experience, to recommended you the best options where you can put in your money.
- Invest in gold buying options:Investing in gold is always a brilliant idea since the price of gold has been steadily rising over the decade. Even though the return isn’t extremely high, the risk factor is much less compared to other options in the financial markets. You can either purchase gold as biscuits, hallmarked jewelry, and coins, or purchase in the form of a DEMAT through ETFs – a much smarter option.
- Open a bank fixed deposit:If you’re skeptical about losing your money, then opt for the fixed deposit at banks. This investment ensures that your principal amount is kept safely and you earn a moderate interest on the same. Keeping current market conditions in mind, you are likely to get at least 7.5% to 8% as interest rate. This, being a liquid asset, makes it possible for you to get your money out quicker. This is much better action to take with your money rather than having it in your wallet or putting it in a savings account where it earns a much lower rate.
- Buy a life term insurance:If you are a salaried 25-year old individual, this is the perfect time for you to buy a life insurance. You can purchase an insurance plan of approximately Rs. 1Cr. Giving an annual premium of Rs. 10,000. (The thumb rule being your cover can be about 20 times your current salary per annum.) A life insurance protects the finances while safeguarding the future of your dependants without burning a hole in your pocket. Additionally, you get tax deductions under section 80C.
- Purchase health insurance: Purchasing health insurance for family dependants becomes a responsibility of every youth after a point. Therefore, if the individual is around 30-years old, married, has one child, they can purchase a floater policy of Rs. 5 Lakh with an annual premium ranging between Rs. 6,000 and Rs. 10,000 with ease. Such an insurance will serve you during urgent medical situations, will not pinch your deep into your pockets, and will exempt you from paying tax under section 80D.
As you can see, there can be several things that one can with Rs. 10,000, and also with lesser or more. The only struggle for all of us starts when it comes to implementing some good financial management in day to day life. There is a line of options available to manage money. You will see that most of the people are unable to make more money from any amount of money lying with them. There are courses available to learn about the processes of financial markets and get an in depth knowledge of wealth management and also working as an Advisor on a professional level.
GAFA, by NSE Academy, in association with EIDOS, provides finance courses in Kolkata that not only provides students with knowledge about the vast industry but also gives them the chance to gain exposure through placement opportunities. These finance courses in Kolkata can be applied for by students who have successfully completed their 12th. Additionally, these courses can be pursued alongside their graduation degree making it an additional support for the future.
Visit www.gafaglobal.com for further information on program and enrolment details.