The latest in the iPhone series, XR, XS and XS Max were launched on September 12, 2018. The price tag for iPhone XS starts at Rs 99,900, the more ‘affordable’ iPhone XR starts at Rs. 76,900. While you may have the required funds in hand, and it may seem tempting to bag the latest iPhone, weigh it against some financial instruments to make a financially sound move. While a smartphone will last only a few years, these investments have the potential to secure your financial future.
Take a look at some of the investment options you might want to consider over buying a costly smartphone, especially if you have just begun your career:
Mutual funds are a lucrative investment instrument. You can invest in mutual funds with an amount as small as Rs 500. Mutual funds reward you with impressive returns if you remain invested for a longer term. For example, equity mutual funds have provided long-term returns ranging between 10-15 per cent per annum. In fact, some top notch funds have fetched up to 19 per cent return. Since mutual funds are linked to market performance, there is a degree of risk attached to it. However, the returns are extremely rewarding.
If you are in the early stages of your career, your risk appetite is likely to be higher. Instead of putting your money in a smartphone which will depreciate with time, consider investing in mutual funds for a secure future.
This is another investment option which can be explored in various ways. You can buy gold in the form of jewellery, ETFs, mutual funds and schemes, etc. One of the key aspects of investing in gold is that the value is typically on the rise. You can buy and sell gold ETFs online. Gold investment comes with liquidity as you can buy and sell units in a few minutes without any exit load.
A lump sum amount in a fixed deposit can help you fetch high and secure returns. Top company fixed deposits offer interest rates up to 8.70 and 8.75 per cent. You can also choose to ladder your fixed deposits and supplement your income using interest from the fund. Some top lenders offer you additional interest upon renewal of your fixed deposit and allow you to use it as collateral too. These benefits, coupled with the assurance of returns, make fixed deposits a good option if you don’t have a secured investment avenue yet. A fund like this comes handy when you are faced with a financial emergency such as a sudden health hazard or job loss. A sturdy, secure fund like this acts as an alternative source of income when there is a momentary loss of income.
As the name suggests, tax-free bonds are a great tax-saving investment option. Tax-free bonds allow you to lower your taxable income, while multiplying your money. These bonds have a maturity period of 10, 15 or 20 years and provide secure returns. Power Finance Corporation, NHAI, Indian Railway Finance Corporation and other government agencies issue these bonds to undertake development of infrastructure. Tax-free bonds offer interest of around 8 per cent and are 100 per cent tax free.