Best investment plans for lazy investors
Recently I met an interesting person. He works in an MNC company and earns good money. However he says I do not know “how to grow” money nor I am interested in spending time to know how can I grow money. I am writing the discussion I had with him as an article as there might be several people like him who want to know the best plans for investment who is lazy in investment planning and cannot spend time and do research.
Question-1: I work in an MNC company and earn good amount of money every month and accumulated Rs 10 lacs now. Where should I invest? I am looking for best plans for investment which are safe and do not like to trade in stock markets.
Suggestions: Investment option would depend on the investment objective. Since you would like to go for best and safe investment options, you can try for Bank fixed deposits. Currently a few banks like Indian bank etc. are offering 9.25% per annum.
Question-2: I save some money every month. Currently they are kept in my savings bank account where my salary gets credited. I do not want to spend time every month in choosing best investment plans. Suggest me options where I need not spend time or where I need to spend only few minutes in a month.
- Open a variable deposit scheme (VRD) in banks like Indian Bank. Variable deposit is one where you need to choose a minimum recurring deposit to be done every month and you can deposit beyond that limit at any time thereby enjoying the interest rates which are applicable at the time of opening a variance deposit scheme. E.g. I opened VRD in Indian bank 2 years back where interest rate was 9.75%. Minimum amount I have chosen was Rs 5,000. Now every month I would ensure I would transfer Rs 5000 through online (in 5 minutes). Now when I got my variable pay 6 months back, I deposited this surplus money in this VRD. But the deposit rates 6 months back was only 9.25%, but I am still enjoying 9.75% as I opened VRD 2 years back. I felt this is one of the best plans for investment where I need not worry about where to invest my surplus money.
- Start a Systematic investment plan (SIP) in debt mutual funds. There are good debt mutual funds which you can start investing. You can choose 2-3 debt mutual funds for SIP. You need to spend 5 minutes every month to transfer the money to your account where you operate mutual funds account. I feel this one of the best plan for investment.
Question-3: I have a daughter and want to accumulative some gold. What is your opinion about this ?
Suggestions: You should first decide whether you want to buy physical gold or Gold ETF’s. Your objective should be accumulating gold which would be useful for your daughter’s marriage. You can invest monthly, through SIP route in Gold ETF’s. Like it is mentioned in one of my friend’s blogging article, Gold prices are going to increase in 2013. Hence this would be one of the best plans for investment which everyone needs to look into irrespective of the investment objective.
Question-4: I am so lazy that I am not able to plan for my tax savings and I am ending up in paying higher taxes. How I can spend less than 5 minutes a month and plan for my tax savings. Don’t suggest me to do tax savings during Jan/Feb which I cannot afford to have big investment.
Suggestions: There are various best tax saving options, but since you have become too lazy and do not want spend time, I suggest two best plans for investment in tax saving schemes. You can look at opening a PPF account in SBI and opening a tax saver fixed deposit in any of the banks.
- PPF: You can deposit as low as Rs 500 in PPF and maximum of Rs 60,000 per annum. You can spend 5 minutes in a month and transfer Rs 6,000 /month for 10 months (Apr to Jan) and do your tax planning
- Bank tax saver deposits: There are good bank tax saver deposits. You can open an online tax saver deposit and deposit at one time. Pls refer best tax planning options for more details on this.
- Though there are other tax saving options, but since there is time constraint, I felt these are the best investment plans for tax saving purpose.
Question-5: I want to go little moderate way and start investing. I do not like investing in direct stock market. But I want to benefit from investing in capital markets. Though you said debt mutual funds would provide good returns, I felt the returns are limited. Assuming that I do not need my money for next 5 years, suggest me where I need to invest to get higher returns.
Suggestions: Start a Systematic investment plan (SIP) in diversified mutual funds. There are top diversified mutual funds you can invest through SIP which you can start investing as low as Rs 500 per month. You can choose upto 5 mutual funds for SIP and start investing. Again, you may need few minutes to transfer the money to your bank account where you have mutual funds account.
Conclusion: There are best plans for investment for lazy investors too. Spending few minutes a month can help them in earning better returns.
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