Investment ideas for ₹1 lakh

October 19, 2019 Finance Talk Valli Sarvani No comments

Fixed deposits in banks yield lower returns. However, certain financial institutions offer a higher interest rate.

You can deposit in them and also in certain funds to yield good returns with an amount of ₹1 lakh.

These are safe investments and yield higher returns over the years.

However, monitor your investments regularly and withdraw funds if you find any risk.

Bajaj Finance fixed deposits offer good returns with attractive interest rates. If you deposit for 36 months, then the interest rate would be 8.35 per cent. These are safe and AAA-rated.

Invest in IDFC Frist capital bank which offers 8 per cent interest rate on the deposits made for one or two years. As most commercial banks in the country are offering in the range 6 to 7 per cent, you can consider depositing in this.

Post Office offers interest of 7.7 per cent on the time deposits for a period of five years. However, if you opt for 3 years, then the interest is 6.9 per cent. Hence go for five years. These deposits are supported by the government; so they are a safe investment.

Coal India shares is another investment idea. Though it involves a slight risk, the shares yield better returns than fixed deposits. Last year, the dividend was ₹13.1 which is around 7 per cent. If the shares rise in the market, you can receive more returns. Since Coal India is a government-owned company, investment in these shares is considered safe.

TN Power Finance is a government of Tamil Nadu enterprise. A cumulative fixed deposit in this company yields an interest rate of 8.25 per cent for a period of 3 years and more. The interest rate is 8.75 per cent for senior citizens. The investment is safe.

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