Best Investment Option for Middle Class.doc
                     Best Investment Option for Middle Class
 
 
 
Having professional people and business people in the middle class Compare Insurance Plans as 
well as their families, the middle class lies between the high class and the working class. 
Investing options available to middle class families are diverse. The most effective way to 
achieve financial goals is to create a good investment plan that is systematically implemented 
during the period of time that one has set for himself or herself.
 
 In India, there are some options available but before investing you should consider a 
few factors that can help you in taking a well-informed decision 
1. Liquidity needs
2. Investment tenure
3. Risk levels
4. Reason of Investment
5. Return on investment
6. Rate of inflation
7. Tax benefits
 
There are two types of investment options available: 
● Low risk investment options
● High risk investment options
 
Low risk investment options
1. Public Provident fund: 
·         One of the highly secured options developed to encourage the culture of 
savings among the citizens of the country.
·          It is a long-term investment plan run by the government of India who invests 
in fixed income securities. 
·         Investing in this type of account allows investors to earn multiple interest 
rates on accumulated funds, and interest earned is tax-free as well.  
·         PPF accounts can also be opened in post offices and banks for as little as 
Rs.1000. 
·         A 15-year lock-in period is included with the PPF. The money can be 
withdrawn after the 6th year, however. Further renewals for five years are 
available to the investor. 
2.            Senior Citizen savings scheme: 
·         The goal is to provide a regular income to the senior citizens of the country 
who are above the age of 60 years. 
·         Also all those who took voluntary retirement between the age of 55-60 years 
are included in this scheme. 
·         This scheme is available all over the country in post offices and certified 
banks. 
·         The key features are:
 
a.            The lock-in period is 5 years. 
b.            The minimum amount to start this scheme is Rs. 1000. 
c.             The maximum investment limit that is permissible is Rs15,00,000. 
d.            The scheme can be further extended by 3 years. 
e.            This is a short term investment as compared to a PPF account. 
 
3. Fixed Deposits: 
·         The simplest and the traditional form of investment among the middle class 
population of our country. 
·         If you are looking for a low risk investment option, then fixed deposits are the 
safest option. 
·         Currently, a rate of interest that is being offered on this scheme is 
approximately 6% per annum. 
·         People prefer to invest in this scheme as the interest rate is higher than that 
of a savings account. 
·         The main attractions are: 
a.            The returns are provided at the time of maturity. 
b.            Fds come with cumulative and non-cumulative investment options. 
c.             The investor can take advantage of this low risk investment option 
quarterly, semi-annually or yearly in the cumulative scheme. 
d.            The exemptions limits are on the higher side for senior citizens. 
e.            The interest rate varies from bank to bank across cities and the tenure is also taken into 
consideration in the interest rate. 
 
        4. National Pension Scheme (NPS)
·         NPS is a retirement plan for Indian citizens between 18-65 years of age. 
·         The attributes of this scheme are: 
a.            The investor is allowed to withdraw 60% of the total invested  
           amount which is a tax-free corpus.
b.            The 40% of the capital is received as regular income from the 
           Pension Fund Regulatory and Development Authority.
                                    c.             This 40% helps in the maintenance of a cash flow throughout the   
                                                 entire post retirement period.                          
d.            This is one of the best long term investment options which helps 
          you in tax-saving. Buy Insurance Policy Online 
 
HIGH RISK INVESTMENT OPTIONS FOR MIDDLE CLASS FAMILY
1. Equity Mutual Fund: 
·         The idealistic market linked investment plan for our aam aadmi. 
·         It is an investment option with high returns which can also overcome 
inflation. 
·         The investor has several options like large, mid, small caps or index 
funds or a combination of funds to invest in. 
·         Each investment option is designed to protect your capital and 
generate a stable return.
·         Mostly there are asset management companies that manage your 
profile. These companies invest in government securities, treasury 
bills, government bonds and other market tools. 
2.            Unit Linked investment plan (ULIP):
·         These plans offer a double benefit which is insurance and investment 
in a single plan. 
·         This is a very good investment option as it offers impressive returns 
on invested amounts but risk is also high. 
·         Each policy or plan is divided into parts
a.            One part is saved for insurance purposes
b.            Second part is used to float in the market as linked instruments. 
·         ULIP plans have a minimum of 3 to 5 years of lock-in period where 
you cannot withdraw any amount. 
·         Further the investors get a tax exemption.
·         You have to take note that ULIP plans have a complicated structure of
expenditure which a middle class person cannot understand easily. 
 
   3. Direct Equity: 
.      If you are looking to invest for a long term then direct equity is the 
perfect option for you. 
·         This type of high risk plan offers good returns if you invest for a longer
time. 
·         With the additional benefit of owning the rights in an organization, the 
investor is entitled to get a share of dividends and bonuses. 
 
4.  Crypto currency investment: 
·         The newest form of digital investment is crypto currency. 
·         Bitcoin and dogecoin are some of the popular types. 
·         These are highly volatile in nature and the value keeps fluctuating 
over a very short period of time. 
·         Before investing, one has to understand all the government-related 
rules and regulations. 
 
Every middle-class person should invest but he/she should be thorough with all the pros and 
cons of every investment option. For more information, you can connect with the well-read team
of okbima.com. Grow your money and cover all your future expenses.