Investment-Options |
Investment options-Attractive and safe?
Here are some more investment options we are going to discuss along with their pros and cons and most important is their risk profile. We all belong to different ages, occupation and have different investment goals and cash requirements. Accordingly only we have to plan how much amount we should invest and where.https://bijimoney.blogspot.com/2020/06/confuse-between-investment-tools.html
Direct Equity
Investment in direct equity means that we are investing the money in companies stocks directly and we are getting the voting right into that company. We have heard from many people even from the elder ones of our family that this is gambling but is it actually? How many of us have the same perception let me know in the comment section? Investing in the stock market means that you are buying the stock of that company so the risk is also yours like the owners of the company, if you will enjoy the gains then you have to bear the losses also if any. Investing in shares is accumulating and multiplying wealth, buy low sell high is the crux. Capital gains is another form of the equity market, if you hold your investment till one year then it is long term capital gains which will not fall under any tax bracket.Pros of investing in direct equity :
Higher returnLiquidity Right to vote
Capability to beat the inflation rate
Dividend benefits
Tax benefit: No tax bracket for long term capital gains
Mutual funds
A mutual fund is formed when an asset management company (AMC) pools investments from people and institutional investors with common investment objectives. a mutual fund is managed by a fund manager who is experienced and expertise. They have in-depth. understanding of markets.The fund houses the charge expense ratio, which is the annual maintenance fee to manage investments of individuals. There are exit and entry loads also which depends upon the type of funds and there are two ways through which we can invest in mutual funds one is SIP(systematic investment planning) and other is lum-sum. The only key is choosing the right kind of fund as per your investment objectives.
Tax Benefit :
Section 80C provides tax deductions on the mutual fund . Equity-linked saving schemes (ELSS) has become a popular tax-saving option.
Real Estate
Real estate is a very common form of investment and very prominent for 50 years of time. Investing in real estate is a good decision or bad depends upon the cash flow you have and how much liquidity you want to keep with yourself. If invested properly, real estate investment can provide maximum returns with minimum risk. Real estate investment can beat the inflation rate best among all the investment with lesser risk. This option can be proven good to diversify your investment. This investment option is most illiquid in nature and has so many hidden drawbacks. Real estate markets in most countries are not well organized, it requires a huge amount of money and mostly this is a very long process. Further dealing with rental and tenant issues along with maintenance is also very frustrating and time-consuming.Tax Benefit: Section 24 allows you to claim exemptions on the interest you pay on home loans
In section 80 C you can claim tax benefits on the repayment of the principal amount with subject to Rs 1.5 lakh
Gold Investment
Gold investment is very dominant in India due to our culture and tradition of wearing gold. It can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond schemes, nowadays digital gold also very prominent. If you are buying physical gold then it always has a risk of theft while other forms of investing golds are required paperwork and some people face many hassles in that.Tax benefit: Short-term capital gains on the sale of gold are added to your gross total income so it is taxed. As per norms If you earn more than ₹50 lakh from any source of income, you need to show your gold holding including jewelry while filing your ITR.
Bonds Investment
Bonds are issued by governments and companies when they want to raise funds. By buying a bond, you're giving the issuer a loan, and they agree to pay you back the principal amount on a specific date and to pay you interest in return with that. Bond pay interest regularly, so they can help you to generate a steady and predictable stream of income from your investment. Investing in bonds may face loss if you sell it before its maturity date or if the issuer defaults on their payments. There are thousands of bonds available in the market either government or private but you have to choose among them as per your requirement.Tax benefit: Non-taxable bonds, or municipal bonds, are issued by state and local governments. Bonds issued in your state are also exempt from state income tax.
So we all done nearly all the basic models of investment options, their draw backs, and benefits while we will take them individually in elaboration as required further.
https://bijimoney.blogspot.com/2020/06/confuse-between-investment-tools.html
https://bijimoney.blogspot.com/2020/06/confuse-between-investment-tools.html
Nice
ReplyDeleteFinally other investment in the blog
ReplyDeleteThere are many type of investments and tax benifits the detailed knowledge
ReplyDeleteThere are many type of investments & tax benifits described well.
ReplyDeleteThanks
DeleteNice.. obviously it is beneficial to gather knowledge about various ways of investment..
ReplyDeleteVery nice .
ReplyDeleteFantastic stuff, Shivangi.
ReplyDelete