Due to the spread of the pandemic, the last couple of years have been tumultuous in and invest money and terms of investments. With the beginning of this new year, there are hopes for better investment options and opportunities. There are multiple investment options available in the market depending upon the needs and the requirements of the investors. With the invention of the repository KYC records. The investment process has become much easier.
You can even check your CKYC number by visiting the online portal of the different financial institutions which offer the check facility. To get higher returns in the year, 2022 here are some lucrative investment options.
Investing in stocks
The stock market looked promising in the year 2021 and is most likely to do well this new year. It is on the course of a post-double digit increase for the second year in a row. In the coming year, a good number of big bull IPOs will be hitting the market. This gives an idea of a good return on investment in this coming period. To make the most of your investment stocks look like a good investment opportunity for your investments.
Mutual Funds SIPs
To meet your long-term financial goals and get strong returns on your investments then mutual funds SIP might be the exact investment option that you might need for the year 2022. These SIPs can be bought with a minimum investment of five to seven years of tenor. You can opt for the most suitable SIP based on the performance of the mutual funds over the years. There are other important things to keep in mind as well before going for a SIP. Thus, you should make a well-researched decision before going for one.
Some mutual funds are suitable for conservative investors and they might help in building wealth over a period. However, it is important to know that there is risk involved and exposure to volatility. One Must consider before investing. Stocks SIPs are also gaining popularity over the years for their good returns on investments. Due to various factors projected in the current stock market the Stock sips in 2022 looks like a healthy investment option.
In this new year investing in pre-IPO shares can be a great option to get great returns and create wealth to achieve your financial objectives. If made a smart move and you invest money at the right place then you will get an opportunity to get excellent returns. IPO investing just other investment options carry risks along with it. However, with great risk comes great returns.
Initial Public Offering
The year 2021 turned out to be an excellent year for the returns in terms of more initiation. 60 IPOs made an entry into the Indian stock market. the word is around that this year the growth of the market will be great with enormous returns. However, it is always advised to do well research and invest money only if it suits your financial plan. The IPOs do involve a certain level of risk and you should ensure your risk-taking ability before investing in them. The IPOs are great investment tools that offer great returns on investments.
This is one of the best investment options for the coming year. If you are looking for a long-term investment option. Even though they involve a high level of risk but they do offer great returns, it is prudent to choose the right stock wisely and make the most of this investment opportunity.
In conclusion, we can say that there are many investment options available which might suit your needs and financial goals. You can also check your KYC number online and make the most of your investments.
There are multiple investment options available in the market. In the past couple of years, the Indian market has suffered a lot due to the pandemic. However, the look of it will change hopefully this new year. There are many new investment options available for better returns on investment and higher returns in the years 2022. These options are investing in stocks, direct equity, Initial public offerings, pre-IPO investments, Mutual Funds SIPs, stocks, etc.
However, these options have their level of risks involved. Investors should go through there’s options beforehand and make an informed decision regarding what should be part of their investment plan. These options give higher returns than might help you in building your wealth.
In India, fixed deposit is one of the popular investment choices of risk-averse investors. The safety of invested capital that is offered by FDs holds much value in the current scenario as the economy is going through a low-phase.
The economic turbulence has also affected the bank FDs and they now range from 3.5 to 5.5% depending upon your choice of lender and tenor. Postal FD rates are up to 6.7% but they are not as flexible when it comes to tenor and early withdrawal options. Corporate FDs are offering a higher interest rate than bank FDs but financial advisors recommend only those company FDs that have a higher credit rating.
For example, Bajaj Finance is offering an interest rate of up to 6.85% on its FD plans. Also, it has received FAAA/stable rating from CRISIL and MAAA/stable rating from ICRA. ICRA and CRISIL are highly reputed credit rating organizations and an ‘AAA’ rating signifies that your investments are safe with them.
Before investing in a corporate FD you should compare with the features of FDs that are given below:
Some corporate FDs are slightly stricter when it comes to premature withdrawals as you might have to pay a heavy penalty if you withdraw your deposits before completion of the initial 3 months from the investment date.
However, some NBFCs provide the option of availing a loan against your FD without pledging any collateral. This means that you no longer have to break your investment in case of a financial emergency.
Also, you can use the tenor range offered by the finance companies to invest money in multiple FDs of varying tenors. This will provide better liquidity and in emergencies you can withdraw from one or more FDs instead of withdrawing your entire investment.
As the FD interest rate applicable on a corporate FD is much better than bank FD rates, it will provide better returns at maturity.
Let’s say that you want to invest Rs. 10,00,000 for 5 years in an FD. If you invest money the same amount in a bank FD you will get up to a 5.5% interest rate at the most whereas a corporate FD like Bajaj Finance will grow your investment at 6.85%. The returns provided by both bank FD and Bajaj Finance FD are given in the below table:
|FD scheme||Amount||Tenor||FD Rate||Interest||Maturity Amount|
|Bank FD||Rs. 10,00,000||5||5.5%||Rs. 3,14,066||Rs. 13,14,066|
|Bajaj Finance FD||Rs. 10,00,000||5||7.35%||Rs. 4,04,386||Rs. 14,04,386|
You can see here that the bank FD rate is good enough to grow your investment by 31.4% in 5 years whereas with the same amount and tenor Bajaj Finance FD will increase your savings by 40.43%.
Tenor flexibility & investment options
Bank FDs also provide a flexible tenor like corporate FDs but they lack when it comes to providing modern-day investment options. For example, Bajaj Finance FD gives you the option of investing in multiple FDs with a single cheque which you won’t find anywhere else.
Also, an additional 0.25% senior citizen scheme interest rate, the option of investing in cumulative and non-cumulative FD plans at once, and choosing tenor between 12 and 60 months make Bajaj Finance FD one of the best FD schemes in the market.
Investors have always seen fixed deposits as a safe option to grow their investments quickly. However, the recent bank FD rates might worry you as they have been reduced quite a bit due to the economic condition and repo rate cut done by RBI. You can think of investing in Bajaj Finance FD that is offering a high FD rate up to 6.85% and the safety of the investment amount. Also, modern-day investment options like an additional 0.10% on using an online FD form to open an FD account and multi-deposit facility that enables you to invest money in different FD types make it one of the best FD schemes.