Priority 6: Investments in safe heavens. Hedging against inflation - Sumit Khedkar

Priority 6: Investments in safe heavens. Hedging against inflation

 

Each and every person aspires to be an affluent person and has a dream of prosperous life.

One can think that by earning money one can become rich. Of course, earning money is a necessary condition but it is not a sufficient condition. One should acquire wealth from the money earned then only the prosperity will come. The earlier you start acquiring wealth the better will be the affluence.

 

All above mentioned top five priority things help you in fulfilling your financial responsibilities and reducing your financial worries. Point number sixth and seventh will help you in acquiring wealth.

 

It is better to invest in safe heavens first than the high risk instruments. The safe investment options such as bank FDs, national savings certificate, tax free bonds and gold etc keep your investment safe and secure, and give you moderate returns to hedge against inflation. When you acquire sufficient wealth using safe investment options you feel confident and safe and you become ready to take risk on the backup of your safe investments.

 

 

Following is the list of safe investment options.

 

Investment Option	Returns	Remarks
PPF	8.70%	Tax free returns.
Bank Fix Deposits	9-10%	High liquidity.
National Saving Certificate	8.70%	No TDS.
Recurring Deposits	9-10%	No TDS.
Tax Free Bonds	8-9%	Tax free returns.
Gold	12-15%	Good returns in long term.