Investing is a great way to ensure a financially secure future and to build wealth over time. But if you only have a limited amount ₹1 lakh, then worry not! You still have various investment options to grow your money, from traditional options like savings accounts to more advanced choices like stocks, mutual funds, P2P lending, etc.
So, let’s understand where to invest 1 lakh rupees and enjoy great returns.
Where to Invest 1 Lakh Rupees
Savings accounts are often considered the simplest form of investment as they offer safety as well as liquidity. When you deposit money into a savings account, the bank pays you interest on your balance. While the returns are mostly average, savings accounts provide easy access to your funds whenever needed. With interest rates ranging from 2.5% to 6%, you could earn around ₹2,500 to ₹6,000 annually on your deposit of ₹1 lakh.
One of the best investments with good returns, fixed deposits are a popular choice for traditional investors who are looking for stable returns. When you invest in an FD, you agree to lock in your money for a specified period at a fixed interest rate. Fixed deposits offer higher returns compared to savings accounts. Investing ₹1 lakh in an FD could earn you approximately 5% to 9% interest annually, translating to ₹5,000 to ₹9,000.
Recurring deposits allow you to invest a fixed amount regularly over a predetermined period. RDs offer disciplined savings and earn interest similar to FDs. They are ideal for investors with regular income. However, like FDs, premature withdrawal from RDs may result in penalties.
Gold is another safe option for investors of all types. Gold has been a traditional investment avenue in India for centuries. It acts as a hedge against inflation and economic fall. You can invest in gold in various forms like physical gold, gold ETFs (Exchange-Traded Funds), etc. Gold investment returns can vary but on average it provides returns of up to 6% to 8% annually.
Risky but worth the returns you may get! Stocks represent ownership in a company and offer significant returns over the long term. However, investing in stocks requires thorough research and an understanding of the company’s fundamentals and market dynamics. With stocks, returns are unpredictable but have a historical average of 12% to 15% annually over the long term.
One of the safe investments with high returns in India, mutual funds involve pooling money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. Investing ₹1 lakh in mutual funds can help you yield returns depending on the fund type and market performance. Equity funds may offer higher returns but come with higher risk, averaging to 10% to 12% annually. On the other hand, debt funds provide stability with returns of around 6% to 8% annually.
Also Read: P2P vs Mutual Funds – Which One Is Right For You?
Another best investment plan for you! With P2P investing, lend your money to borrowers without the involvement of traditional banks and financial institutions. It is one of the most popular ways to grow your wealth within a minimal timeframe. With 13Karat, you can invest your 1 lakh rupees in our 6-month investment plan and 3-month investment plan to earn great returns of up to 13% and 12% respectively.
Also Read: Benefits of P2P Lending For Investors and Borrowers
You can also invest your ₹1 lakh in government savings schemes like the Public Provident Fund (PPF), National Savings Certificate (NSC), and Sukanya Samriddhi Yojana (SSY) to get attractive interest rates. These schemes provide tax benefits and hence, are often suitable for conservative investors. However, they have lock-in periods and require long-term commitments.
Conclusion
This is how you can invest your 1 lakh rupees and enjoy great returns over time. Also, keep in mind that before investing you should always figure out your risk tolerance. This way you would be avoiding heavy losses. Regardless, if you are all in to earn interest up to 13% per annum in a brief period on your investment, then sign up with 13Karat.
Invest smarter and earn better!
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