You had
investible money, deposited it in a fixed deposit scheme, and have the lump sum
maturity proceeds, now what? A lot of people in their early twenties or
thirties plan on getting in on a fixed deposit scheme for a good return after a couple of years.
Once you
have the maturity proceeds with you, is it best to simply add it to your
savings, go on an expensive vacation or put the money forward in another
scheme? Let’s find out more.
Getting Another FD Scheme?
It is
likely that the FD schemes which you invested in and got your proceeds from,
now offer a higher return scheme from other financial institutions, after a
period of 10 or 20 years. The simplest way to get thehighest
return on FDpossible is to look for a short-term
plan now.
For
example, if you have a maturity proceed of up to Rs 30 lakh, try to invest in
two different schemes for the next five years. Look for the highest safety assurance,
premature withdrawal of after three months of deposit made, and you are good to
go.
A Post-Office Scheme
A post
office scheme can get you an excellent deal. A post office monthly income
scheme gets you around 7.7% of interest annually. If you qualify for the Senior
Citizens Scheme, you can make use of the quarterly annual interest payouts, as
well. This scheme can get you around 8.7% of interest annually, which is at par
with the highest returns on FD you can get your hands on.
Income Schemes In Mutual Funds
If you are
more on the conservative side of things and still hoping for a monthly income
from your investment, a low-risk profile, stable returns scheme would be the
way to go. Many financial institutions offer professionally managed funds.
Accrual
funds with a short-term scheme are the best place to start with when investing
money for the first time in a mutual fund. With such funds, you can get around
7% returns annually.
SIPs
Systematic
Investment Plans are also a great way to boost your FD maturity proceeds. These
are very popular Indian mutual fund schemes. With this, you can keep a low-risk
profile, as such schemes allow you to invest in a small amount multiple time
periodically.
The
investment procedure can be carried out weekly, monthly, or quarterly. When you
go for a SIP, you can start with a quarterly or monthly to see how it goes, and
then you can go ahead and start investing lump-sum amounts.
Risk
takers can go for schemes that have higher capital appreciation with high-risk
profile schemes and higher interest rates. It is better to play safe with low
investment schemes when you have your FD maturity proceeds. But, if monthly
income is a priority instead of long-term returns, its best to go with
financial institutions that have lakhs of SIP accounts and are doing well.
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