Got a salary hike? Congratulations! Getting an increment is definitely a cause for celebration. The additional income doesn’t just make you feel valued and acknowledged, but also goes a long way towards boosting your financial standing. Investing that increment smartly can help you reach your financial goals much faster. Here’s how you can make the best investment out of that salary increment.
1. PPF (Public Provident Fund):
Investing in a PPF is a great way to use the additional salary amount. The interest you earn on your PPF investment is tax free and you can claim tax benefits under Section 80C of the Income Tax Act, 1961. Investing in a PPF can also help you get started on your retirement fund.
SIPs or Systematic Investment Plans are one of the most popular ways to invest money and grow your wealth over a period of time. Start investing early to make the most of this scheme. You may invest small amounts in the beginning and increase the amount as and when your earnings increase.
3. Stocks and Shares:
If you’re willing to try something different, giving the stock market a try could be a great idea. Invest that additional income in stocks and trade them when you see the potential for maximum profit. However, before you decide on this, it is best to read up and understand how the stock market works and what are the risks you will be taking by investing your money in shares. Informed decisions are the only way to make your stock market investments work.
4. Fixed Deposits:
Fixed Deposits are one of the most secure and trusted ways to grow your wealth. By investing in FDs, you can maximise your savings and ensure guaranteed returns on your money at competitive interest rates. Fixed Deposits ensure high returns on your investments and you can invest the increment amount as a lump-sum for the duration of your choosing. To know more, please click here.
5. NPS National Pension System:
The National Pension System (NPS) is an investment instrument that helps you plan for your retirement. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA) and is one of the most sought-after investment options in India. This scheme involves investing in various instruments like equity, fixed deposits, corporate bonds, liquid funds, and government funds. You can choose where you want to invest and how much of your investment should go into that asset. To know more, please click here.
Now you know the best ways to make the most of that salary increment. Investing it wisely is the first step. The more you keep adding to your investments, the better will be your financial standing. Make an informed decision depending on the options that fit your goals and suit your needs. Happy investing!