MLC

Experts recommend starting your investments as early as possible, but it is never too late to begin. Here are five investment plans* if you are in your ’40s and are looking to build your financial portfolio. Make sure you do your share of market research and reach out to experts to ensure that you have maximum gains.

Systematic Investment Plan (SIP)

SIP allows you to invest a fixed amount of money at pre-defined intervals in mutual funds. You can start your investment with Rs 500 and set up a weekly, monthly, quarterly, semi-annually or annual investment plan. SIPs allow you to have a long-term investment vehicle without worrying about market dynamics and benefits, thanks to the power of compounding.

Market Risk: Pure Equity Mutual Funds SIPs are risky, and Debt Funds are safe
Minimum Investment: Rs 500 monthly
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Government Bonds

Government bonds are another safe investment option with fixed and floating interest rates and a fixed tenure. You can opt for a bond for as long as ten years. The interest gets paid semi-annual or annually, and you receive the face value of the investment at the end of the term. You can buy the bonds through designated banks like HDFC Bank, Axis Bank, SBI and ICICI Bank.

Market Risk: Safe
Minimum Investment: Rs 1000 monthly
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Gold

You can invest in gold either through sovereign gold bonds and ETFs or by buying physical pieces of gold. It’s a good idea to have gold as two to five per cent of your financial portfolio for emergencies and long-term saving plans.

Market Risk: Reasonably safe
Minimum Investment: One gram in gold bonds and Rs 1000 in ETFs
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Pension Plan

The National Pension Scheme (NPS) launched by the Indian Government allows you to make a minimum investment of Rs 6000 per year, and you can withdraw up to 25% of the money after three years of opening the account for specific needs like purchasing a home, sponsoring a child’s education or medical emergencies. The scheme matures at the age of 60 years and can be extended up to 70 years. This is perfect if you wish to accumulate funds and secure your post-retirement life. You also get tax exemption on the amount invested.

Market Risk: Safe
Minimum Investment: Rs 500 monthly
Click here to know more and start investing.

Company Deposits

Like a bank fixed deposit, a company fixed deposit is a deposit with a company at a fixed rate of return over a pre-decided tenure. The interest rate depends on the maturity of the term. Company Deposits have a higher risk factor as there is no capital or inflation protection, but you can earn a higher interest rate than a bank fixed deposit.

Market Risk: High
Minimum Investment: Depends on the company
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Stocks

Investing in stocks means buying shares of ownership in the company. The shares are known as company stocks. Stock market investment is a long-term plan and needs a lot of research and understanding of the market. Make sure you have a diversified portfolio to gain maximum benefits.

Market Risk: High
Minimum Investment: Depends on the company
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Lead image by Liza Summer via Pexels

*Do your own research before investing in these vehicles.