Got Diwali Bonus? Use Sukanya Samriddhi Yojana, Fixed Deposit, Mutual Fund options to grow wealth
Got Diwali bonus? The amount of Rs 50,000 or Rs 1 lakh may appear too small, or you may even end up looking to splurge it all on festivities. However, if you think sincerely, you can turn the bonus into a financial boon, even as you use a part of it for celebrations. All you need is to do a bit of planning. You can invest 70-80 per cent amount of your Diwali bonus in a savings schemes. Here are a few suggestions where you can invest the bonus money and get the real and lasting joy of seeing it grow.
For 1-3 years: You can opt for short-term trade fund, arbitrage fund or invest in bank Fixed Deposits that are offering up to 8.5% interest these days.
For 3-5 years, or more: If your annual salary doesn’t come under the taxable bracket, you can opt for FD, National Savings Certificates. If your earnings falls in the 5% income tax slab then opt for tax-saving instruments like 5-year tax saving FD, open a PPF account, or a Sukanya Samriddhi Account in the name of your girl child. At the current 8.1% interest rate under PPF, your yearly investment of say, Rs 6000, can turn into a Rs 1,87,036 fund after 15 years. Alternatively, you can buy Kisan Vikas Patra from a post office near you. This investment will double in around 10 years.
For long-term investment: You can explore share market option. You can invest in a large-cap mutual fund, multi-cap equity fund or balanced fund. However, consult experts before investing as these come with risks.
If you don’t want to take on risk, you can opt for FD, PPF or Systematic Investment Plan that can result in 7-9% interest. If you are up for risks, invest in equity mutual fund schemes. In the long run, MFs have given 11-18% return.
In case you want have to to buy something, then go for gold. Gold price is expected to go up in the wake of the twin phenomenon of falling sharemarket and rupee. However, rather than plumping for jewellery, buy gold ETF.