While short-term investment focuses on capital preservation, long-term investment focuses on wealth building. It is all about building an investment portfolio that will give you income in the long run, whether for retirement or to satisfy any other long-term financial objective. It is essential to build money to sustain the amount of income you will need in the future. However, a measure of risk is required with investment options to reap profits. It often comprises equity investments, ULIPs, and other similar products. On the other hand, riskier investment options provide a possibility to recoup from market dangers if you remain involved for a more extended period. It may fall by 20% in the next three or five years, but it may finally produce double-digit returns in the following ten or twenty years. There is less risk with assets, but the rewards are either fixed or sluggish. As a result, while considering long-term objectives, you must allow yourself a chance to overcome short-term declines to achieve the required returns. Also Read: Where to Invest for Long Term Investment in 2022
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Financial planning is vital for life. There is no later point in life when an individual cannot do the same. It promotes financial discipline, helps increase hard-earned money, and gives financial stability when necessary. However, financial planning may be complex, frequently dangerous, or unclear for beginners.
In the aftermath of declining interest rates and pandemics, individuals seek secure investment solutions that offer them attractive returns. NPS and FD are two of the most sought-after investment alternatives that suit the demands of the clients. Let us continue reading to comprehend both and determine the essential elements of FD vs NPS. A Fixed Deposit (FD) provides you interest on deposits locked in for a specified amount of time. Fixed deposit begins when you invest a set quantity of money for a limited time. The sum is then frozen, and you get your principal and interest only once the FD matures, i.e. when the investment duration is complete. Read: NATIONAL PENSION SCHEME VS FIXED DEPOSIT: CHOOSE THE RIGHT CHOICE The Public Provident Fund is one of India’s most popular retirement planning plans. When you start contributing to your retirement early, the pension fund constructs a safe golden year financially throughout the years. A well-chosen retirement plan may help you soar above inflation, owing to the power of compounding.
Retirement plans, often known as pension plans, are life insurance policies that guarantee financial stability after your active income quits. These pension fund schemes are insurance-guided investment programs that help develop a significant retirement corpus overtime for a pleasant and stress-free retirement. You invest your earnings throughout the years in them, which is invested on your behalf by the insurer to create income during your post-retirement years. You may withdraw the corpus as a lump sum or set monthly payment as requested. Read: https://siricht.com/how-to-smartly-invest-your-pension-fund-in-india |
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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