The unpredictability and turbulence we have seen in recent times has upped the need for safe, flexible, and low-risk forms of investments. The pandemic brought home the fact that livelihoods can be snatched in the blink of an eye, and that it is up to us to safeguard our financial interests. Then, just as the world began recovering from the after-effects of covid, came the war in Europe, driving inflation through the roof. Here we bring you five investment products that are perfect for small to medium-income earners and will help them feel more secure in this economically insecure world!
This futuristic and flexible investment product has been especially tailored for young, tech-savvy investors at the start of their career. With a zero lock-in period, interest credited daily at 12% per annum, and a minimum deposit of just INR 1000; Xtra is a fresh take on investments designed to suit the needs of millennials and gen Z. Available on the user-friendly MobiKwik mobile app, it enables users to invest and earn for short bursts or extended time periods according to their convenience. For instance, if you invest some money at the beginning of the month, that money earns a daily interest till the time it is withdrawn. If the withdrawal is made on the 16th of the month, your deposit has earned an income of 0.5% in those 15 days, thus maximizing your savings. So basically, this product works by not letting your money sit idle without earning an interest for even a few days, a rarity in the finance world!
Siply Gold Savings Scheme
Gold continues to be one of the safest instruments of investment. It is not subject to major price fluctuations and is unlikely to ever fall to nil. Besides, it can be easily converted to cash. However, the critical thing is to invest in 99.9% pure gold coins and bars that bear the BIS Hallmark. Siply recently launched a scheme that makes gold accessible to all. Depending on your individual financial situation, you can choose to buy a gold coin that weighs either 0.5gm or 1 gm. Instalments start at just Rs 450 per month for a 1gm gold coin and Rs 250 for a 0.5 gold coin. These instalments need to be paid over a period of 10 months, but the monthly amount can be broken up into smaller parts to suit your convenience. This lucrative rate makes Siply a platform where you can buy top-quality gold at the lowest price.
Systematic Investment Plan
This mutual fund-based scheme has become rather popular in recent years as a low to medium-risk long-term plan to create a corpus. A SIP is a scheme offered by mutual funds that allows you to invest in a regular and disciplined manner. You can begin with a fixed amount as low as Rs 500, which you need to advance at pre-determined intervals to the mutual fund scheme of your choice. All of this can be decided at the time of investment. A SIP works exceedingly well in the long term because the benefits are amplified by the compounding effect. You don’t just earn interest on the actual investment but also on the interest, which keeps getting re-invested! Be sure to consult an expert and understand all details to identify a SIP that suits your need.
Unit Linked Insurance Plan
Here’s a financial product that allows you to enjoy the benefits of insurance while being a savvy investment too. A part of the premium – that you pay at a pre-determined time – is used for insurance coverage, while the rest is invested in market-linked offerings such as stocks and bonds. Depending on the plan you choose, the minimum premium you will need to pay on a monthly basis is Rs1,500. Though most ULIPs come with a lock-in period of 3-5 years, they allow tax-free maturity. In short, ULIPs promise security for the family as well as an opportunity to create wealth in the long term.
National Savings Certificate
The government-backed National Savings Certificate has stood the test of time as a reliable and secure means of savings and investment. It can easily be bought at a public bank or your nearest post office. You can begin with a minimum investment of Rs 1,000 with no maximum limit. The current compound interest rate is 6.8% but it is revised every quarter by the Ministry of Finance. The NSC comes with a five-year lock-in period – the capital and interest are paid out at maturity!