• Home
  • National News
  • How to become rich: 5 products you can start investing with just Rs 500 a month
How to become rich: 5 products you can start investing with just Rs 500 a month
National  
Financialexpress

Don't have enough money to invest? Don't worry. There are different investment options in the market today which require less than Rs 500 a month to start investing.

 

Spending Rs 500 a month is a much easier decision for most people. So, congratulations to you for deciding to save the money and invest it. It takes a lot to commit to a regular and disciplined investing scheme, at a time when the propensity and ability to spend is so high. Many people do not realize that Rs 500 a month is actually Rs 6000 a year and Rs 1.2 lakh over 20 years. If you can regularly invest even such a small sum, the rewards can be far greater. Since investors have different risk profiles, investment horizons, and investment choices, let us take you through 5 interesting avenues where you can start investing with just Rs 500 a month. Read on to know more.
 
1. Mutual Funds
 
Mutual funds (MFs) allow you to do systematic investment plans, popularly known as SIPs. Through this innovative way, you can invest as low as Rs 100 a month in some schemes and Rs 500 a month in other schemes. You can invest in an equity fund, a debt fund, a hybrid fund and a gold scheme. The investment returns are linked to the performance of the underlying assets. By investing Rs 500 a month for 20 years in an investment giving, say, 10% annual return, you can get Rs 3.8 lakh at the end of the term.
 
 
This is a universal social security scheme. Under the APY, the subscribers would receive the fixed minimum pension of Rs 1000 per month, Rs 2000 per month, Rs 3000 per month, Rs 4000 per month, Rs 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. The scheme allows you to invest little amounts monthly. For instance, a person between the age of 25-30 can pay about Rs 300-500 a month to get a Rs 5000 guaranteed pension after turning 60 years of age. In case of death of the subscriber, the pension amount will be given to the spouse, and on the death of both (subscriber and spouse), the accumulated pension corpus would be returned to the subscriber’s nominee.
 
3. PPF
 
The returns in Public Provident Fund are guaranteed, and they are changed periodically by the government. The scheme is a popular long-term investment option backed by Government of India, which offers safety with attractive interest rate and returns that are fully exempted from tax. Investors can invest minimum Rs 500 in one financial year and can get the facilities such as loan, withdrawal, and extension of account. By investing Rs 500 a month (Rs 500 X 12 = Rs 6000 a year), at the end of 15 years you can get Rs 1.7 lakh as the maturity amount.
 
4. FD, RD
 
Fixed deposits and recurring deposits are traditional investment favorites. Many top banks offer regular FDs with a minimum amount for deposit at Rs 100 and some offer at Rs 500. Bank FD interest rates hover between 6.5% and 7.25% for most old commercial banks. Recurring deposits allow you to invest every month for the tenure you have chosen. Apart from PSU banks, many private sector banks allow you to deposit a minimum of Rs 500 per month and thereafter, deposit in multiples of Rs 100. RDs may be used for a loan against the deposit. The rates of interest on RDs are identical to the fixed deposit rates.
 
5. Post Office Schemes
 
There are many special Post Office schemes that allow you to invest in small amounts. A Post Office Savings Account (4.0% per annum interest) can be opened with minimum Rs 20 and minimum balance to be maintained in a non-cheque facility account is Rs 50. Next, a 5-Year Post Office Recurring Deposit Account (giving 6.9% per annum quarterly compounded interest) can be opened with Rs 10 per month. A Post Office Time Deposit Account (TD) can be opened with minimum Rs 200 and in multiples thereof. A National Savings Certificates (NSC) can be opened with a minimum of Rs 100 and in multiples of Rs 100. In case of NSC, Rs 100 grows to Rs 144.23 after 5 years. Most of the small-savings scheme returns are fixed by the government periodically.
 
Conclusion
 
As you can see, there are different investment options for Indian investors even if they want to invest as low as Rs 500 a month. So, do not wait and invest to grow your hard-earned savings in top-quality options today so that you can secure your family’s future going ahead. Every Rs 500 invested today can be worth thousands tomorrow if you give it enough time.
 

 
 


 
 


 
More in National
Auction of Liquor Shop in Rajasthan Village Starts at Rs 72 Lakh, Bidd...

The news of the liquor shop in Rajasthan shooting up auction price of Rs 510 crore left many flabbergasted, including the officials from the Excise department who h...

Recently posted . 16 views

Gurugram Inc won’t expand in Haryana anymore, eyeing hubs like Noida n...

There was a palpable change in the direction India was taking in the last six months. Haryana government has put fears in the industry.

Recently posted . 20 views

Moving away from CBSE, Delhi to have its own education board from this...

Chief Minister Arvind Kejriwal announced on Saturday that a set of Delhi government schools will be de-affiliated from the Central Board of Secondary Education (CBS...

Recently posted . 114 views

Gurugram's Loss Noida's Gain? Haryana's New Quota Law Could Be an Adva...

The BJP-led Haryana government’s decision to reserve 75% jobs in the private sector for locals has worried companies in the state.

Recently posted . 14 views

No more RTO visits: You can renew your driving licence through Aadhaar...

Transport ministry launches contactless services. Which means you don't have to visit the RTO office to renew driving licence, get a duplicate licence and for o...

Recently posted . 38 views

 
 
 

Prashnavali

Thought of the day

“Act as though it is impossible to fail.”
Dorothea Brande