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How To Automate Investments & Savings In India

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People nowadays don’t have enough time to park their money in investment or saving schemes regularly which makes a big part of their money stay idle in their savings bank accounts. Considering this issue, we have listed some ways which can help you automate investments and savings, which will not only help you invest your money but also offer you better returns. Let’s have a look at different ways which can automate your savings and investments.

How To Automate Investments & Savings In India

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What Are Automated Investments & Savings?

An automated investment scheme will automatically deduct a small fixed amount from the investor’s bank account every month and invested in the fund of their choice.

Different Ways To Automate Investments & Savings In India

Here are the different ways using which you can automate your savings and investments.

1. Employee Provident Fund

Employee provident fund (EPF) is one of the best ways to automate your savings for retirement. This scheme is designed for all legally employed private sector employees. Under this scheme, a part of their salary is deducted every month and invested on their behalf. This is a very common style of automating savings where you have to fill a form at the time of joining company and your company will deduct some percentage of your basic monthly salary every month and contribute the similar amount in your EPF account. This way, a part of your salary with equal contribution from employer will automatically be invested and you will get a decent interest on your investment.

2. Recurring Deposit

Recurring deposit account is another way to automate your savings easily. This scheme is introduced by banks where you can open a recurring deposit account and funds will be transferred automatically from your savings bank account to recurring bank. You can specify the amount that should be transferred every month to your RD account and the time up to which the process should continue. This will not only automate your savings but also offer you higher interest rates than savings bank account.

3. Systematic Investment Plan (SIP)

Systematic investment plan (SIP) is another way to automate investments. This is a simple way to invest in mutual funds regularly. It is just like a recurring deposit with the post office or bank where you put in a small amount every month. The difference here is that the amount is invested in a mutual fund (indirectly in stocks etc).

You can start your SIP by defining the amount of investment you want to make every month or quarter and the duration up to which the amount should be invested. The idea is to set apart a sum every month or quarter, and use that to buy units of a particular mutual fund, regardless of its price. People like such a system because it helps them save regularly and build up an investment. Professional or experts manage your funds invested through mutual funds after extensive research on the company, the industry and the economy and then make investments on your behalf.

4. GOLD SIP

Gold SIP is a little new concept but works same as usual SIP. Only difference is that, here you invest in gold instead of mutual funds. Investors can choose any company offering gold funds to invest in gold via SIP. This not only help you invest a part of your monthly income in gold but also offers you good returns.

5. Insurance

This is another investment that you can automate. All you need to do is take any endowment or money back insurance plan that offers survival benefits at the end of the term. With this, you will get benefits of both insurance and investment. For this you can set auto pay in your bank account. It will automatically pay the premium on the date set by you.

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Also Read: Tax Benefits Of Health Insurance

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