Hyderabad: Many, who have a good income, aspire to double their money, but are in a dilemma where to invest to get good returns. Apart from that Indians are fond of gold and they are always searching for a good investment in gold. Furthermore, everybody wants to get a higher return on their investments, but a few can reach those goals while others wanted to know what kind of schemes can they invest in to earn more income? Is this possible with risky investments? With such doubts, let’s see what the expert says to clarify your doubts.
I am planning to invest up to Rs 10,000 per month. What schemes should be chosen if the minimum annual return is to exceed 14 per cent? How long should I invest? asks Arun
"Higher returns are possible only with risky investments. See how much risk you can bear. With equity-based investments, in some cases the return is more than 14 per cent. However, this is only possible when the investment continues for at least 7-10 years. Do not forget that in the short term fluctuations are high. If you continue to invest periodically .. you can expect a return of 12-15 per cent in the long run. For this you should look at the best performing diversified equity mutual funds," advises Tumma Balraj.
Also read: Gold price falling: Is this the right time to invest?
"I want to deposit Rs 5 lakhs in the Senior Citizen Savings Account in the name of my mother. Is this more profitable? Would it be better to invest in debt mutual funds and take a certain amount per month?" Swapna seeks advice.
By investing in the Senior Citizen Savings Scheme you can get 7.4 per cent annual interest. Interest is paid every three months. Under the present circumstances, fixed deposits and debt funds are not likely to yield higher returns. So, deposit it in the Senior Citizen Account. The scheme should continue for five years. The investment is tax deductible under Section 80C. The interest earned is shown together with the total income and is taxable based on the applicable slabs.
"I am 43-year-old. I want to take a term policy of Rs 75 lakh. Can it be taken from the same insurance company? What is the benefit of taking from two companies?" urges Srikanth
Life insurance policy value should always be around 10-12 times the annual income. Your personal, health and financial details should be clearly stated at the time of taking insurance. Only companies with a good claim payment history should be selected for insurance. If the insurance is taken by a single company and if the company rejects the insurance claim due to any problem we will face difficulties. Therefore, it is better to take policies from two insurance companies if one rejects we can rely upon the other one.
Now many companies are offering the opportunity to invest in gold in the name of digital 'gold'! Is it better to choose these? Is there a risk? Venkat wanted to know.
There are now many ways to invest in gold. Digital Gold is one of them. It looks attractive as you can invest in it for as little as Rs 100. It is possible to make a profit or a loss depending on the gold price as it fluctuates every now and then. It is advisable to opt for Gold ETFs or Gold Funds when you want to invest in long-term, opined Tumma Balraj.
Also read: Gold ETFs: Why you should look beyond physical gold for investments
