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5 Sustainable Investment Options For Building Long Term Wealth

As a woman, it is important for you to achieve financial independence and have the funds to pay for all your expenses such as healthcare, children’s education and household bills. This means that you need to park your funds in the right investment options for women so that you can grow your wealth.

Investing in an FD for women can be the first step to do this. Locking your funds in a Fixed Deposit for Women with a financial institution  offers you guaranteed returns, a good safety rating and an attractive rate of interest. You also get to check the FD interest rates and your maturity amount in advance by using the FD calculator.

It is important to consider various other options to boost the prospects of earning income and building your savings. Continue reading to know about the various options to invest in.

#1. Bonds

Bonds are inflation-indexed investment options. Generally, the government or government assisted concerns such as Indian Railways, National Highways Authority of India (NHAI), Housing and Urban Development Corporation Ltd (HUDCO), and NTPC Ltd release bonds of various amounts.

You can buy these bonds from selected banks and reputed stock exchanges. Even though bonds offer you higher returns regardless of market conditions, but they do come on a longer maturity tenor, of minimum 10-15 years. However, both your investment and return on maturity is tax exempted.

#2. Company FD

You can secure your path of gaining quick returns on your investment with FDs.  Company fixed deposits offer up to 2% higher interest returns on your principal as compared to banks. So, choose Fixed Deposits from issuers like NBFCs and gain high interest rates of up to 8.75% on your investment.

Awarded ICRA’s MAAA (Stable) Rating and CRISIL’s FAAA/Stable Rating alongside the assurance of a high return, his FD also offers you a range of benefits, such as loan against FD, online account management, and minimum deposit requirements of just Rs. 25,000.

#3. Real estate

Owing to the implementation of RERA and the Pradhan Mantri Awas Yojana scheme, you can now easily invest in a property of your choice to get benefits on your purchase. While RERA authorities protect your interest as a homeowner, PMAY allows you to qualify for its sub-scheme basis your household income so that you can enjoy interest subsidies of up to Rs. 2.67 lakh on your home loan. PMAY also gives special preference to women beneficiaries. So, it is now easier for you to carry out your real estate investment in a hassle-free way. Additionally, you can also plan on renting your property after a few years or sell it under favourable market conditions to yield better returns on your investment.

#4. PPF and EPF

  1. PPF
    This is a tax-saving investment option it allows you to invest a minimum of Rs.500 or a maximum of Rs.1.5 lakh during a financial year. You can divide your yearly investment in parts and pay all through the year as per your financial standing or deposit a lump sum once every year. However, you need to continue investing in Public Provident Fund for at least 15 years. After which, you can either withdraw the matured sum or seek an extension of up to five years.
  2. EPF
    Employee Provident Fund or EPF scheme was started by the Indian Government. Vide this scheme your employer deducts a percentage of your salary all along your employment years and deposits it into your EPF account. Here, the added benefit is that basis your monthly deductions, your employer also contributes a part as an addition to your EPF.

Both these schemes help you access a good corpus of funds in the long-term and your interest gain do not attract TDS. You can claim your contributions for both at the end of year as tax exemptions under Section 80 C of the Income Tax Act.

#5. ULIPs

Unit Linked Insurance Plans are unique investment instruments that function by investing a part of your funds in equity and the other part in the debt market. The goal of this scheme is to provide you the perfect safety and at the same time accelerates the growth of your savings.

You can choose from a variety of ULIPs based on your goals and the nature of your investment. However, rest assured that your investment in ULIPs will fetch you 7-8% interest gain year-on-year and will allow you to claim tax exemptions under Section 80 C of the Income Tax Act.

#6. Mutual funds and equity

Park a lump sum amount for a fixed tenor in mutual funds to gain returns directly from the market. Take assistance from a fund manager and allow your funds to grow over time by staying invested in the market across a range of market securities, shares, and government bonds. Choose a longer tenor for your mutual fund investment and gain from a high interest of 10-12% on your invested sum. 

Investing in a mix of these options not only help you preserve your wealth but also help you provide your family a financially secure future.