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5. Invest in a PPF
A PPF or a Public Provident Fund is a long-term investment plan backed by the government of India. It’s pretty cool because not only are the interest rates great comparatively, but you’re also fully exempted from paying tax on it. One can invest anywhere between Rs 500 to Rs 1,50,000 per year and interest is compounded annually. This is a long-term saving.
6. Open a Demat account or invest in mutual funds.
A Demat or a dematerialized account is a trading account which allows you to buy and sell shares on a daily basis. It can reap you some great dividends if done properly or make you lose a lot of money. Either way, it is very addictive so beware. If no Demat, you could also look to invest in one of the many mutual fund schemes out there but make sure you are advised by a professional or a friend who knows the market through and through before you spend any money. This is a short term saving. If you haven’t heard it already, mutual fund investment is subject to market risk. Please read the offer document carefully before investing. Say it as fast as possibly. Repeat.
