Today one can easily invest digitally, with small amounts, and earn good returns. The digitization of the world post the pandemic has accelerated the options to invest digitally. Digital banking has reached over 420 million people in India, and some popular options with today’s working professionals include Mutual Funds, Digital Gold, Fixed Deposits, and so on.
Everyone understands the significance of investing money, some are actively using the options available, while some use a passive approach. Whatever approach you might have, here are five investment avenues you can consider investing in digitally this year.
Mutual Funds, a popular choice amongst millennials, are flexible investment vehicles in which you can begin and stop investing at your convenience. The mutual funds' industry is one of the fastest-growing segments of the financial sector in India. One of the most prominent benefit of this vehicle is diversification as the investment is spread across a variety of assets according to one’s risk appetite. In addition you can get professional management, tax benefits, higher return on investment, and moreover, it’s an easy investment and allows you to invest in small amounts also.
Recurring Deposits is a special fixed tenure investment that allows you to invest a fixed amount every month for a pre-defined time and earn a fixed rate of interest. An advanced version of the fixed deposit, RDs allow you to save money in installments and not in one go. Recurring deposits are best suited for short-term goals as they offer higher interest rate when compared with savings account and one can invest with as small as INR 500 /month.
Digital Gold can be a great option to create a robust long-term investment portfolio. It gold is a virtual commodity and is a good way to invest, without having to physically buy gold and being liable in terms of safekeeping and storage. It can be bought online and is stored in insured vaults by the seller on behalf of the customer. All you require is digital (internet/mobile) banking, and you can invest any time and from anywhere in digital gold. You can invest easily by logging on to the Airtel Payments Bank through the Airtel Thanks app. With digital gold, you can start investing as low as Rupee 1 with an assurance of 24K pure gold, buy and sell according to market dictates, redeem as per your wish, and also start a Gold SIP.
ension Plans help individuals secure their financial future and protect them from any uncertainties that may arise post-retirement. Investing in pension plans guarantees a fixed and steady income after retiring or immediately after investing, along with tax exemption specified under Section 80C.