Always we get this question from retailers that what is the best investment plan for 1 lakh rupees? . When we check with them they are more concerned about safety than returns. So if you are one among them, then this blog is for you.
Here we gave important to liquidity of investment and also risk involved, which means how easily one can get back money, how can they keep an eye on investment . As people are more concerned about safety, here we come up with best and simple plan , so that people get maximum benefit with minimal risk.This you can apply to any higher or lower range amount as well as per your budget.
Importance of Emergency fund:
Assuming that you are already having Emergency fund for your accidental use, then only we can go further. Reason, this is hard earned money and it should be of your use when you are in need of it. So at least 6 month of monthly expenditure should be kept aside.Key factors which we include in this article Investment plan-Best and Safe options for 1 lakh rupees are mentioned below.
Our plan of action goes this way. Fixed Deposit or Recurring Deposit( RD), Gold, Mutual fund. Interesting? Or Boring?
Boring is the way to create wealth! 40, 30, 30 is the rule.( Out of 100)
Diversification:
This makes things interesting and also keep your investment balanced. Since we are dividing amount in to 3 main parts and maximum of amount is non risky part, it will be less risky.
Risk-Tolerance:
For retail investors this is always on lower end so we are going ahead with very low risk.
As part of this article Investment plan-Best and Safe options for 1 lakh rupees , We would let you know why out 3 options are good for retailers with 1 lakh rupees.
Best investment plan for 1 lakh rupees:
First Option: Fixed Deposit
One of the efficient and old way of saving money for future.
Reason why we need is , our main objective is safe and risk free. Here if you invest 100 Rs you will definitely get percentage mentioned. That may be 6 % or 7%. ( Depending on current rate across banks).
And even if you try to invest under more rural bank you will get till 8 to 8.5 %.
Make sure you are investing less than 5 lakh as there is no insurance from govt for more than 5 lakh if you invest in any banks. Remember this.
People say it will give very less returns, remember none other will give guaranteed return. 100 Rs invested in any stock or Mutual fund can be +200 or -200 (Based on market price). But here its for sure 106 or 107 at any cost.
So our first investment will go to FD by investing 40 thousand out of 1lakh.
Second Option: GOLD( Not ornaments)
Here don’t make mistake of buying ornaments as a investment . This comes with making charge , GST. So go for God coin/Bar or God bees or SGB.
Gold coin
If you go to any jewellery shop near by, if you ask them gold for investment purpose they will provide this gold coin or Bar. Since this won’t have much of making charges this can be good investment and more Important here is this can be liquified immediately when you are in need.
Liquidity is biggest problem retailer will face . Like whenever retailer are in need of urgent money, they cant get immediate money from FD or any other source as there might be bank holidays, or stock market holidays. So this Gold becomes good option.
Gold Bees
If you are related to stock market, you may be knowing this. Otherwise let me explain.
Same way people buy stock, or stock market allows people to buy Gold as a entity through any broker account for one who is having DMAT account.
Here user can login and Buy x number of quantity of gold bees, as and when value of gold increases, this value also increases. This is is directly proportional.
SGB ( Sovereign Gold Bond – Not suggested due to Lock In)
SGBs are government securities denominated in grams of gold. They are substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The Bond is issued by Reserve Bank on behalf of Government of India.
Only hick up in this is lock period. It has got 5 year lock in .
Good thing is they give you interest as well.
Please try to go for any one of this depending on your budget as per our initial amount we are buying 40 thousand amount of gold coin or gold bees.
Third Option: Mutual Fund ( Index fund)
This is one instrument where we have to take some risk. . Will explain you in simple term about Mutual Funds.
You may have heard of advertisement showing Mutual fund are subjected to market risk. So this is related to stock market.
And now a days we have mutual fund which works with property and also different assets allocation as well.
So anybody having very less knowledge about stock market , can go for Mutual fund.
How do mutual funds work for beginners?
There are many mutual fund companies out there. So first step for beginner here is always to go for reputed company mutual fund, like TATA, SBI etc ( not recommendation).
Then again safe is to go for Large cap mutual fund or Index fund.
This means company will add your money to nation’s very large company , or only which are part of Index( Like Nifty 50 , Nifty100) related , so less chance of complete loss.
So what they do, mutual fund company is investing behalf of us to purchase some good stock and invest to this for longer term.
We can see guaranteed profit in mutual fund when we hold on to it to longer duration.
Since this is bit of risk which we need to take to get some returns we are investing less amount of our total.
With this we can take less risk so we will deploy 20 thousand out of 1lakh. So this completes our 1 lakh.
Note: There are other Article about fundamental and technical of stock market which you can read through from here (Read More..)
Conclusion:
If you observe from all 3 options , we can have investment in front of our eye. That means, FD will have certificate of deposit, Gold will be in physical form, so you will have it. Or even if you buy Gold bees and also Mutual fund now a days we can see that in our mobile apps, after login to brokerage account (Like Zerodha, Grow etc). So you will be able to check whenever you need to.
There are many other option present but we decided mainly because of liquidity ,lock in also risk involved with this. So Check these parameters before investment on any items.
Note: We are not SEBI registered, kindly check with your financial advisor before making any investment.
Note: There are other Article about fundamental and technical of stock market which you can read through from here (
FAQ:
1)What investment option has the lowest risk?
Fixed Deposit has the lowest risk .
2)What are the advantages of investing in a fixed deposit?
Principal amount which you have invested cannot become zero. So you will always get guaranteed amount. This is the biggest advantage.
3)How many goldbees is 1 gram?
1 single gold bees=0.01grams of gold.