Outlook Money
The world of investing can be intimidating for many Indians. Terms like 'market volatility' and 'compound interest' are often mentioned, asking a beginner question why they shouldn't avoid it altogether.
Fixed Deposits offer guaranteed returns, making them a reliable investment choice for beginners. Currently, banks like SBI and HDFC provide interest rates ranging from 3.5% to 7.75% annually.
RD offers a comparable sense of security, especially for individuals looking to invest small sums on a regular basis. With RD, one can begin with contributions as low as Rs 500 per month, making it ideal for those with limited disposable income. Over time, this disciplined method helps in accumulating a corpus while earning interest.
SIPs allow individuals to invest small amounts, starting as low as ₹100, at regular intervals (monthly or quarterly) in mutual fund schemes. This approach makes investing accessible for beginners and promotes disciplined saving without the need for a large initial capital outlay.
PPF is a great option for beginners. This government-backed scheme offers an interest rate of 7.1 percent as of November 2024. Additionally, it provides tax benefits under Section 80C of the Income Tax Act.
EPF is a great investment option for salaried individuals. Both employers and employees contribute 12% of the basic salary.