As a self-employed person, you need to make certain investments. Investments are important because they help you to have a secondary source of income and also to build up your wealth. However, as an entrepreneur, you have to be careful and not take too much risk as an investor. Take a look at this article to know about the best investment options you have and then start locking in your money in safe and effective ways.
- Fixed deposits:
Fixed deposits are excellent investment options for self-employed people. This is mainly because they are a low-risk instrument and offer a steady return. As an entrepreneur, you may be experiencing constant ups and downs in your business, so a little stability in your investments would be nice. Relying on a fixed deposit at such a time proves to be helpful.
- Mutual funds:
Mutual funds are another great investment option for you if you are self-employed. Mutual funds are slightly more risky than a fixed deposit, but they offer higher returns too. This is handy as you get to build up your portfolio in a faster and more effective way. There are many choices available within mutual funds, so you can choose the one that suits you the best and proceed with your investment.
- Post office savings schemes:
There are many savings schemes that are available from the India Post. you can open any of these at any post office, anywhere in the country. They offer safe investment opportunities with fixed returns. Some of the best options include the National Savings Certificate, the Kisan Vikas Patra and the Sukanya Samriddhi Account. These investments can help you and your family. For example, the Sukanya Samriddhi Scheme is an investment you make for the financial wellness of your daughter.
- PPF:
PPF, or the Public Provident Fund, is a very popular and well-performing post office scheme that is excellent for investing in. You need to lock your money in for a minimum of five years. The investment period is 15 years and the rate of interest is around 7% per annum. There is a loan facility in it too to help you meet your sudden and urgent financial needs. The PPF is a long-term investment that helps you to achieve your financial goals in a safe and risk-free manner.
- Retirement plans:
It is common for employers to offer a retirement corpus for their employees. But since you are self-employed and do not have an employer, you need to save up for your own retirement. This is absolutely crucial because if you don’t invest for your retirement from now, you will not be able to remain financially independent till the last day of your life. You can consider the retirement life insurance plans as they help you to keep your life insured while building up a good retirement corpus too.
Conclusion:
All the options listed above are good investment opportunities for self-employed people. Consider any one of them or all of them, and safely lock in your money while earning some handsome returns too.
