Different Investment Option and Why you should do Investing???

According to Warren Buffett,

The about statement of World's 3rd Richest Person and Investor said we should Invest more in our knowledge to increase our earning and so now let's begin in Investment Journey.

Different Investment options:
1. Fixed Deposits From Bank and Company:
You can invest in fixed deposit in Bank. You will earn interest rate of 5.75-7.55% depends on the bank to bank. Ex: Jana bank give interest of 9.75% because of Micro bank you can invest in such bank to earn higher interest and beat inflation.

What is Inflation???
According to Investopedia,"Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over a period of time. Inflation indicates a decrease in the purchasing power of a nation's currency." for more information visit this https://www.investopedia.com/terms/i/inflation.asp
Lets take example: Suppose in 2018 you purchased 1kg of Potato at 100 Rs and inflation rate say increases every year at 4% and in the next year the price of Potato will be at Rs.150. This means increase in price of goods and decreased the purchasing of power of your currency.
So, those who keeps their money at home will not beat the inflation. Those who keep their money in saving account is a loser and those who invest in fixed interest will be at advantage. Bank is low risk low return. It will keep your money safe but you will not get high returns.

2. Company Fixed Deposit: 

What are Company fixed deposits:
The deposits made by investors in companies that earn a fixed rate of return over a period of time are called Company Fixed Deposits.

Benefits of Company Fixed Deposits:

Higher Interest rate: 2-4 percent high compared to Bank Fixed Interest rate.

Regular Income: In this case Investor have advantage that is  depending upon the scheme, investors have the option to receive interest at monthly/quarterly/half-yearly/yearly intervals.

Lock-in period: It has minimum lock-in period and you can withdraw after maturity.

TDS: is not applicable if interest earned is equals to or less than 5,000 for a year in a single company.   

Bonus tip: High Risk involved so analyse the Company before Investing in Company Fixed Deposits.

For more information visit this link: https://www.bajajcapital.com/fixed-deposits

Bonus tip: Before Investing in any financial Instrument do your own analysis.

In next post we will talk about Other Investment options such as Stocks and Bonds.