Making A Quick Buck

Most often we let go of a desired holiday or may be a little expensive concert because we are saving for something big, like a house or a retirement plan. However, we fail to realise all of it can be done together with a little bit of systematic planning.

- ​​Sanchari Ghosh

Investments in Banks

Recurring Deposits: Best option for creating a short-term fund. Goals can be set for six-months, one-year or two years and the amount can be as small as 500. The rate of interest is similar to fixed deposits (FD).

Savings Account: These accounts are opened with the bank to handle regular expenses. There is no lock-in period. Though it interest rates are nominal (three-four per cent), unneeded cash can be deposited here.

FD: You can deposit a lumpsum amount as an FD investment ranging from seven days to 10 years. Though it has a lock-in period but gives higher returns than savings account.

Mutual Funds

Systematic Investment Plans: Popularly known as SIPs, it works almost like recurring deposit accounts. A fixed sum of money is deducted from your account every month but unlike recurring accounts, the money is invested in mutual funds.

Fixed Income Funds: Such funds give you more or less a fixed return at regular intervals. Investors who are looking for a steady source of return prefer these funds.

Equity Fund: Though equity funds are high-risk bets, they generate a higher return than debt funds or fixed income funds.