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Christmas is right around the corner, and so is the end of the year. There is no better time for you to take stock of your investment portfolio and review your investments to ensure you have a truly jolly year ahead. This is the perfect opportunity for you to adjust, add or renew your fixed deposits, mutual funds, insurance plans, equities or more, and start 2020 with firm financial footing. So, this Christmas, steer your investments towards assured growth and higher returns.
Here is a list of investment options that will help you stay merry not only in 2020, but also in the years beyond.
Secure your post-retirement finances with NPS
The National Pension Scheme is a long-term retirement plan that is handled and managed by the Pension Fund Regulatory and Development Authority and the Centre. This is the perfect option if you are a first-time investor aiming to build a rich post-retirement corpus reliably. Depending on your risk profile, you can allocate up to half of your finances to equity. Moreover, you can claim tax deductions on the contributions made to the NPS under Section 80C of the Income Tax Act.
Get higher returns by investing in mutual funds
If you have a larger risk appetite and long-term financial goals to meet, then invest in mutual funds. Mutual funds can give you returns even upwards of 10%-12%. Also, you do not need to wait to accumulate a large corpus to invest in a mutual fund, as you can start investing via a Systematic Investment Plan. However, though you enjoy higher returns, your investment is not risk-free, and it depends on the market’s performance. Therefore, ensure that you invest in mutual funds wisely and consider the use of a long tenor to balance the effect a volatile market may have on your investment.
Achieve multiple benefits simultaneously with ULIPs
A Unit-Linked Insurance Plan or ULIP is a customised plan that allows you to channelise your finances towards investments such as bonds and equities and an insurance plan at the same time. Similar to NPS, you get to choose the bonds and stocks you wish to invest in. Additionally, you are eligible for tax benefits through Sections 80C and 10(10D) of the IT Act. At a fundamental level, what happens with a ULIP is that small portion of your premium goes towards your life insurance and the rest towards generating wealth.
Obtain assured returns by investing in an FD
If you are looking for an investment option that offers assured returns, and can be aligned to your short- and medium-term plans, look no further than the Bajaj Finance Fixed Deposit. Being the only NBFC to boast of a short-term issuer credit rating of ‘A-3’ and a long-term issuer credit rating of ‘BBB-’, with a stable outlook, by S&P Global Ratings, Bajaj Finance Limited is one of the safest companies to partner with. On investing here, you can grow your investment at FD interest rates running up to 8.35% over a flexible tenor of 12 to 60 months. Further, your returns are backed by CRISIL’s FAAA and ICRA’s MAAA ratings, the highest in their respective categories.
Thanks to this blend of stability and yields, the FD witnessed a YoY growth of 60% and today, the NBFC is the only one to have zero unclaimed deposits. Moreover, here, you can avail other value-added features like FD Auto-Renewal upon maturity and the Multi Deposit facility, which allows you to open several deposits with a single cheque. Bajaj Finance also gives you a loan of up to Rs.4 lakh against your FD, which you can avail in an emergency.
Since your returns are not linked to the market, you can forecast them with the FD calculator. The table below shows how much you will earn if you invest Rs.20 lakh for 36 months in a Bajaj Finserv FD depending on the type of customer.