Investment Tips: It is not necessary for investment that it should be started with big capital. If you want, you can create a big capital by investing only 1 thousand rupees every month. For this, you can choose the options according to your need and convenience and then by investing in it regularly, you can prepare the best portfolio. If an investor keeps investing money in some options continuously for a long time and never withdraws, then he can create huge capital for himself. However, it is necessary to do some necessary homework before investing so that it can be decided in advance in which options to invest your money. Here below are some such options in which you can build your best portfolio in the long run by starting with just Rs 1 thousand.
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Mutual funds are one of the most preferred options for investment. Through this, you can invest in the capital market with very little money and an expert fund manager looks after your money. Under this option, one can invest a fixed amount (Systematic Investment Plan-SIP) in a lump sum or at regular intervals on a fixed date. Your fund manager will monitor the portfolio and take necessary decisions to maximize returns. How big the investment of even a small amount can become in this, can be estimated from this that even if you invest 1000 rupees every month continuously for 30 years, then if you get a return at the rate of 14 percent, then at the end of 30 years you will have 55,57,056 will become capital of Rs.
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Public Provident Fund (PPF)
Investing in PPF is the traditional way i.e. it has been the preferred investment medium among the people for a long time. Investing in PPF has triple benefits i.e. saving for retirement, guaranteed returns and investment security. In this, there is a government guarantee on investment, due to which it is considered safe. At present, the return on PPF is given at an annual rate of 7.1 percent. If you invest only 1 thousand rupees every month under this scheme, then at the end of 30 years you will have a huge capital of Rs 12,51,680.
If you do not have much cash but still you want to invest in stocks then stock SIP is a better option. You choose a few stocks and then keep investing some money in it every month. This will create a better portfolio for you. The best stocks like ITC, SBI, Bharti Airtel, Sun Pharma and Wipro have prices less than Rs 1,000.
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ETF (Exchange Traded Fund)
ETF is a collection of many securities like bonds, stocks, money market instruments. To put it in simple language, many investment options have been included in ETF i.e. the capital invested in it is invested in many options. Investors can take investment decision according to their needs.
Recurring Term Deposits
Most of the banks offer the facility of depositing a fixed amount every month on which interest is earned on the deposit accounts. Investors can open recurring term deposits in banks and earn an interest of 3-6 per cent per annum on the money deposited in it. It is a good way to build the habit of saving and invest without any risk.
National Savings Certificate (NSC)
NSC is a government savings scheme and under this not only you get guaranteed security of capital but also you get fixed interest. At present, interest is being given on NSC for 5 years at the rate of 6.80 percent. You can buy NSC in any Sarkari Bank or ICICI Bank, HDFC Bank and Axis Bank.
(Article: Deepak Singh, Chief Business Officer, Reliance Securities)
(The advice given here is that of the author and Financial Express Online does not assume any responsibility. This is for informational purposes only. Before taking any investment decision, please consult your advisor.)