{"id":90,"date":"2020-01-07T12:22:18","date_gmt":"2020-01-07T12:22:18","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=90"},"modified":"2020-01-08T06:18:29","modified_gmt":"2020-01-08T06:18:29","slug":"best-investment-option-for-salaried-person-in-india","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/best-investment-option-for-salaried-person-in-india\/","title":{"rendered":"Best Investment Option for Salaried Person in India"},"content":{"rendered":"
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Salaried individuals are quite different\nfrom self-employed or professional ones. They tend to have a fixed monthly cash\nflow where they need to meet their expenses and save for various short term and\nlong term goals. Most of the salaried person in India is often guided by the\npaycheck-to-paycheck living where they live through the amount that they pocket.\nIt\u2019s not as if the salaried person is averse to investment, in fact, it\u2019s the other\nway round. They equally want to participate in the investment and let their\nwealth grow but cannot do so because of limitations and binding. <\/p>\n\n\n\n

We here look at the struggles and\npresent-day situation of a salaried person in India and look forth to find the\nbest investment option for them. Read along.<\/p>\n\n\n\n

Salaried person and their limitations <\/h3>\n\n\n\n

Often times when it comes to investment\nsalaried person are limited by the boundary and the limited supply of money\nthat they yield. A salaried person receives a paycheck in regards to their work\nwhich often times are bifurcated to meet the expenses like food, lodging,\ntravel, health needs, EMI\u2019s and much more. A salaried middle-class person often\nlives throughout the month with the hope of seeing the salary credited to the\naccount in order to fulfil those responsibilities.<\/p>\n\n\n\n

Add that to the other family-related\nneeds and care that they need to oblige too, they are hardly left with anything\nto venture into the investment scene. But many salaried people still find\nenough to venture into investment options in the market. The only major\ndrawback even though they are investing, the options that they go for are not\nthe optimum ones. <\/p>\n\n\n\n

Present-day Investment scene for\nSalaried person and its struggles <\/h3>\n\n\n\n

Traditionally, India has had a strong\ndesire for fixed deposit, gold, and real estate investment. It\u2019s no surprise\nthat salaried person also thinks of these ones as the prominent options to go\nfor. But thinking of it practically, a salaried person has a limited supply of\nmoney and with the same, they can venture into fixed deposits or in Recurring\nDeposits. Some of them also opt for equity-based investment while those with\nlarge savings go for something like gold and real estate. <\/p>\n\n\n\n

The major investment options regarding the\nsalaried person in India are Equity investment, Public Provident Fund, National\nPension Scheme, Bank Fixed Deposit and Unit Linked Insurance Plan. These\ninvestment options are one of the practical options around yet they also tend\nto go through some tough struggles. For say investment options like Public\nprovident fund and National pension scheme, these require you to lock-in your\namount for a large period of time and the return is pretty low at around 8%. As\nfor the fixed deposit, the returns are around 7% in the market. If you take\ninto consideration the aspect of inflation, then the net returns for the same\nwould amount to a mere 3%-4% after inflation and taxation. This is a very poor\nreturn on your invested money. <\/p>\n\n\n\n

Meanwhile, the equity market suffers\nfrom the inbuilt fear and myth among people that equity investment is a risk\nand requires a large pool of money to invest in what has limited the investment\nin this field. There are still fractions of people who deem equity as a risky\nventure and term it in accordance with gambling which in itself is a myth. Equity\ninvestment hasn\u2019t had the facility to upscale majorly due to the ongoing fear\nand myth about it. <\/p>\n\n\n\n

But it\u2019s not all dull and gloom as there\nis an investment option that befits the salaried person. We\u2019ll talk about it\ndown below here. <\/p>\n\n\n\n

What is the best investment option for a\nsalaried person in India?<\/h3>\n\n\n\n

Although equity in itself has suffered\nfrom the misconception of risky and a gamble, it is still the best investment\nplan for wealth generation in India. Historically equity has offered better\nreturns at 15%-20% in comparison to other investment options. Equity is a great\ninvestment plan and you don\u2019t even need a large pool of money to start with. <\/p>\n\n\n\n

You can opt for Equity Systematic\nInvestment Plan where you can start slow and low without the fear of losing out\nyour money. Equity Systematic Investment Plan works in a way where you can\ninvest either a specific amount of money or buy a fixed number of shares on the\ntrigger date. <\/p>\n\n\n\n

What is Equity Systematic Investment\nPlan?<\/h3>\n\n\n\n

Equity SIP is an investment plan where\nan interested investor can purchase the shares periodically in a systematic\nmanner. This allows the user to purchase the shares by investing small amounts\nwithout having the need for a lump sum payment straightaway. <\/p>\n\n\n\n

There are two different ways you can opt\nfor equity SIP in the form of amount based SIP where you divide the SIP by the\nmarket price per share. Herein you have to invest a fixed amount for a period\nof time as decided by the intended investor. Another option is the quantity\nbased SIP wherein you have to purchase a fixed amount of share for a specified\nperiod of time.  <\/p>\n\n\n\n

Benefits of investing in Equity SIP for\na salaried person><\/h3>\n\n\n\n

Here are the benefits of Equity SIP for\na salaried person. Read along.<\/p>\n\n\n\n