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Best Ways to Invest Your Hard Earned Increment Money

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People feel very shy about even thinking to invest their increment money, as at times it can be small. But the time has changed and there is no need to be timid about investing your hard-earned increment money, irrespective of the amount.

Investing is always good as you get a reasonable rate of interest. It can help you save taxes, if you invest for a longer time. You can secure your after retirement life and also it can help you meet other financial requirements.

As the time is coming when you would get your hard earned money in terms of increment, you should always make sure that before investing you check on all the terms and conditions as there have been times when people do not read the documents carefully, and they suffer a lot after that. So try and not be the one who invests after looking the interest rate and not evaluating the risks evolved with it.

There are various ways to invest your increment money, but let us discuss the best ones for you -

1) Mutual Funds for Long Term Financial Goals

Be it a beginner or a person with experience, mutual funds are very easy to understand. If you have just started your job a year back and got an excellent increment and thinking of investing. In that case, nothing can be more beneficial for you than investing in mutual funds as they are simple to understand.

You can invest in stocks, assets, cash or bonds- anything in mutual funds. It is a basket of investment and a golden opportunity to secure your future. You can also invest in mutual funds with a minimal amount and for a short duration as per your requirements.

If you compare mutual funds with other types of investments, they comparatively cost less. If you add the transaction costs, the expense for research tools or investment advice and annual fees paid to a brokerage firm, mutual funds are usually less expensive than a typical portfolio of stocks.

So, this year after your increment you should think of investing on mutual funds first as they have less risk, short span investment and better rate of interest. Mutual funds always help in creating wealth by giving you a better return on your investment.

Read Related BlogWhy Mutual Funds are ideal for creating Financial Wealth

2) Bonds for Wealth Creation

They are wealth management products in which you invest for a lump sum in an array of available funds. Few of the investment bonds are for a fixed term, while some of them have no fixed investment term. When you get the investment bonds en-cashed, how much you would get back would depend on how good, or bad the investment has done.

The best part of the investment bonds is that they have very less risk and you can withdraw your money whenever you need with some amount of penalty. You can purchase investment bonds from a financial advisor or straight away from an insurance company.

Wherever you plan, but invest your savings in a sensible manner. But still, if you are confused about where to spend your hard earned money, you can always seek advice from an excellent financial service provider, so that he can give you a good recommendation. It would help you in both earning money by getting a good return on investment and saving money by redeeming your tax. So, do not get much confused the time is here invest in mutual funds and secure your money and future both.

Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.

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