Best Investment Plans for Fixed-Income Earners

Retirement Plans

For every salaried employee, having a retirement plan in place is crucial. The sooner in life you start it, the better for you. A retirement plan can be simply understood as a 2-in-1 plan, offering a blend of insurance and investment. Here, the insured pays a premium to the insurance company for a pre-set period. This ultimately helps a lump sum amount or a corpus, which can then be offered as regular payouts to you. Along with this, the insured is also provided with life cover.

Public Provident Funds

For fixed-income earners or investors looking for something with a comparatively lower risk profile, Public Provident Funds have always been a popular choice. PPFs are long-term investment plans that come with a lock of 15 years. Backed by the government of India, PPF currently offers an interest rate of 7.1%. PPF also offers tax benefits. The deposits allow tax exemptions of up to ₹1.5 lakhs a year, under section 80C of the Income Tax Act, 1961. At the time of withdrawal, the accumulated amount and interest earned are tax-free.

Mutual Funds

Over the last few years, mutual funds have gained a lot of popularity. Depending on your risk appetite, you have the freedom to invest in equity, debt or other securities. However, before you invest in these monthly income plans, it is important to understand that their returns are not fixed and can fluctuate as per the market performance. Before you step in and invest in these plans, make sure to assess your risk profile and choose accordingly. Mutual funds offer flexible investment options, professional fund management, and potential for higher returns. The option of SIP, Systematic Investment Plans, makes them an ideal option. You can start investing with as little as Rs.500, without your monthly budget taking a hit. Remember, these small yet regular amounts make it easier to build wealth over time and achieve financial goals.

Long-Term Government Bonds

Government bonds are raised to help the government secure funds for its spending. However, they also serve as a popular investment opportunity among investors. For someone willing to try something with a low-risk profile, government bonds are quite a preferred choice. Typically, these bonds come with a maturity period, ranging between five to forty years.

Gold

Gold has forever been a go-to investment option for most Indian households. It is not just a form of financial security, but is also a trusted way to invest. The recent price rise may have taken away the opportunity of investing in physical gold, there are many other ways that you can invest in gold. Options like Gold ETFs, Sovereign Gold Bonds and digital gold offer flexibility and pocket-friendly investment. You can start investing with a very modest amount while eliminating the challenges of storage and ensuring purity.

Over to You

Starting investment plans on that strictly fixed income of yours might seem daunting at the start. However, it's not as difficult as it may seem. With a little planning and the right strategy, you will be able to balance your growth with safety and align your income with your future goals. Thankfully, there are various options available in the market today. Just understand each option, weigh its pros and cons and make a decision. Whether you wish to invest aggressively or want to make some safe and low-risk choices, or follow a middle path, you will find something that best suits your needs.

At Jio Insurance Broking, you get to explore a variety of investment plans and choose one that best aligns with your risk appetite, financial goals, and disciplined investing. Remember, small but consistent steps towards your investment plans are taking you closer to a stable financial future.