Where to invest 500 rupees per month in India
India has variety of investment options for all ages. It offers wide range of investing opportunities that start from investing even 500 rupees or less per month. From the ordinary bank savings account to stock market investing, lot of options are available for investors in India. In this article, I give a set of right investment products for those seeking answer to the question, “Where to invest 500 rupees per month in India” OR “Easy ways to start investing with as little as Rs. 500”
Can I invest 500 rupees monthly? and Where to invest 500 rupees per month?
Yes you can. At the very first, refresh your mind by removing the myth that only people having lots of money can only invest. It is absolutely wrong. People can easily invest with little as 100 rupees and systematically in each months. Below are the products that help you to select and invest little by little, regularly and in a disciplined manner to get long term returns.
1. Mutual Funds
Mutual fund allows investors to start investing 500 rupees per month as SIP (Systematic Investment Plan). Almost all the tax savings schemes have the facility of minimum investment of rupees 500 per month. This will help you to grow your money for long time as well as provides tax benefits.
Prefer to invest in best tax saving funds that has good reputation, better management and high ratings.
By investing Rs 500 per month as SIP for 20 years to a mutual fund that giving, 10% annual return, you will then get Rs 3.8 lakh at the end of the term. The total investments during the 20 years will be only Rs 1.2 lakh.
2. PPF or Public Provident Fund
PPF is a guaranteed product and a popular long-term investment option backed by Government of India. It allows Indians to invest minimum of 500 per month or an year. Total investments and interests are totally tax exempted. PPF offers compounding interest and if you invest Rs. 500 in PPF for next 15 years, you will get Rs. 1.7 lakh at the end of the term.
3. Post Office recurring deposit scheme
There are many post office schemes that can start investing small amounts like 500 rupees or less. I prefer the post office RD because it gives 6.9% per annum with quarterly compounded interest
4. Post office time deposit
Post office time deposit is an another option that can open with Rs. 200 and in multiples thereof. This is also a good option for investing money little by little, systematically in each months.
5. National Savings Certificate
An NSC can start with minimum of Rs 100 and thereafter multiples of Rs 100 can be invested. With NSC, Rs 100 grows to Rs 144.23 after 5 years. NSC considered as a small saving scheme and this it has thus the returns are fixed by the government periodically.
6. National Pension Schemes (NPS)
Similar to mutual fund, you can invest minimum Rs. 500 to the Tier 1 NPS and Rs. 1000 for Tier 2 during the registration. Afterwards, an investor can select the amount to invest that starts from Rs. 250 to above as they wish. Investor have options to select the investment frequency too. This investment can be started directly by visiting the NPS site.
Is it good to invest in NPS?
If you are looking for investments that save tax, NPS is a better option. NPS is also a good investment option to grow your wealth slowly and steadily to build a solid retirement corpus .
Conclusion
Investment is not meant for only rich people. In India, a common man can start investing money with even Rs. 10. However, investing systematically to the assets matters. Most of these assets allows you to increase the investment amounts later.
Happy investing !