Smart Investment Choices in 2020
Everyone invests for their secure future. In the future there is not much financial trouble or worry, for this, every person seeks the right investment option. Creating a strong financial portfolio can be very complex and difficult. For good profits, a person should keep in mind several things like financial goals, risks, investment returns and availability of funds. Let us know what options you can choose to invest in 2020.
Equity is one of the most important asset class in your investment portfolio. The reason for this is that you can create wealth by investing in it through SIP. This will help in meeting your future financial goals, which require corpus deposits. If you invest for a long time, then you can expect excellent returns from equity mutual funds. Considering the valuation of the equity market, investors should regularly invest in SIP / STP mode.
Ultra-short term schemes
Some investors do not want to keep their funds for long and want liquidity on investing. SEBI has regulated ultra-short-term and short-term schemes for such investors who are reliable. It gives short term returns and has more liquidity. Choose ultra short term and short term fixed income schemes for your near future goals. These are better than fixed deposits for tax savings. Especially those who are in more tax slabs and if held for more than three years, they have an advantage in tax.
You can invest in gold for personal emergency. It will save you in financial crisis. This is the best asset class to protect you from inflation and market volatility. If individuals do not want to buy gold in physical form, then they can invest in gold through gold funds or gold exchange traded funds.
If you have a demat account, you can invest in gold ETFs, which invest 99.5 percent in pure gold. However, investment in Gold ETFs through SIP is not allowed. If you want to make a periodic investment in gold, you can invest in Gold Funds, which buys units of Gold ETF and allows the person to invest in the Fund at regular intervals.
Gold funds also provide more liquidity and security than physical and other gold-related investments such as ETFs. Try to keep 5 to 15 percent of your portfolio in gold through gold funds.
Small Savings Schemes
The government has regulated many savings schemes such as PPF, Post Office Savings Schemes etc. in which a person can invest according to his financial needs. These schemes cater to the need of money for marriage, education, healthcare etc. and along with this, tax is also saved.
NPS for retirement
The National Pension Scheme is a government pension scheme, but it is linked to the market. In this, investors can prepare funds for retirement with regular contributions. Since it is a market related product, the returns in it are directly related to the performance of the chosen fund. This scheme is suitable for a person who wants deduction within 80CCD (1) and 80CCD. Keep in mind that the maturity of the investment in it will happen only after retiring, hence liquidity can be a matter of concern.
By: Naveen Kukreja , CEO & Co -Founder, Paisa Bazaar.com