Best Investment Options 2024 in India: Most investors think that investing in the stock market and equity is the job of youth. Elderly and youth above 50 years of age feel that they should withdraw money only in traditional options like FD, Recurring, and NSC. We talked about investing principles and he shared some important insights. This makes it clear that even the old and customer-oriented domestic entrepreneurs should. turn to the stock market and enterprises.
Talking about issues related to investment and tax, Balwant Jain says that old investors should move ahead from this notion. According to him, there is also a chance to earn better returns from his fund. I believe that equity is the only option that can help in achieving a peaceful retirement. In options like FD, the return after deducting tax can be negative. Its returns remain around the inflation rate.
Best Investment Options 2024; Go for the equity
According to Balwant Jain, for people who are above 50 years of age and have not yet created any fund for retirement, the only option for them is equity, which can help in raising funds faster. After a journey of 50 years, you become free from responsibilities to a great extent, and perhaps by then you have also got rid of things like debt.
During this time, you can adopt an aggressive investment strategy take some risk on your money, and get tremendous returns. Yes, keep in mind that instead of investing directly in the market, investing every month through SIP can also be a good option, because if you get a salary every month then it can be easier.
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Why investment is not a risk?
Even those who have completed 50 years have 10 years to struggle till retirement, and if they have invested more than 7 years in equities, their money will never sink. This poses no threat to them nor does it cause any harm. Equity is the only means by which a person can accumulate money as he approaches retirement. Not only this, one can also get returns of more than 12 percent in more than 10 years.
Best Retirement Plan 2024: You can get double benefits
Balwant Jain says that investing money in mutual fund equity instead of options like FD gives double benefits. First of all, here you will get at least a 12 percent return in the long term. Other taxes will also be saved. While the tax has to be paid on FD as per the slab, returns on equity are free up to Rs 1 lakh. On the amount above, income tax has to be paid at the rate of only 10 percent in the long run.
What is equity?
Equity shares are a source of long-term finance for any company. These shares are issued to the general public and do not have a redemption plan. Individuals investing in these types of shares have the right to vote, share profits, and claim the assets of the company. The valuation of equity shares can be expressed in different terms, such as par value, face value, book value, etc.
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Benefits and the features of the equity
Investors in most types of equity shares have voting rights, giving them the right to choose the individuals responsible for business management. By choosing conservative management, the company can increase its annual total income, which also increases the average dividend income of investors.
Equity shareholders have the right to receive the additional profits generated by the company in a financial year. This increases the personal investment of individuals having large investments in equity shares of any company. Although equity shares are not redeemed until the close of trading, equity shares already issued can be traded in the secondary capital market. As a result, investors can withdraw money from any company as per their wish. This ensures huge wealth creation through the capitalist value of such shares.
Why we should invest in equity shares?
Equity investment can give you various benefits some of which are given below:
High income: The equity stock market is an ideal segment of the capital market responsible for the unique income of investors. Wealth creation works not only through the capitalist value of these types of securities but also in the form of higher dividend income received by individuals.
Protection against inflation: Investing in profitable equity shares enhances the life course of individuals and liberates them through appreciation of property value. Investing in equity shares yields multiple returns on money, which more than offset the loss of one’s purchasing power due to inflation. Thus, the real value of investments grows over time.
In conclusion, we can say that, for better retirement planning you can invest in share market and equity because traditional methods cannot provide you a handsome amount of benefits, which will cause you tension in your retirement age.