Small Investment, Big Returns: Top 5 Investment Options for Beginners to Build a Strong Future..

People often think that you need a lot of money to invest, and that small savings won't make a difference. Because of this thinking, they don't invest their money anywhere. This is the biggest mistake. A small salary will become larger in the future, but the time you've lost by not saving will cause you a significant loss. Therefore, whether your income is low or high, it's essential to start investing. A truly smart investor is someone who starts with a small amount and gradually increases their wealth. If you've recently started a new job and your income is low, don't worry. Here are 5 smart options that will give you significant benefits in the future.

1. Mutual Fund SIP – Start with ₹500

SIP, or Systematic Investment Plan, is the easiest and lowest-risk way to build wealth. You can start investing with as little as ₹500. In some places, you can even invest with an amount less than ₹500.  SIPs are used to invest in mutual funds. The average return in the long term is considered to be around 12%. Therefore, this investment can give you a very good return in the long run. To create wealth, start with ₹500 and as your income increases, keep increasing your SIP amount through a step-up plan. This will benefit you greatly. The best part is that market knowledge is not necessary.

2. Public Provident Fund (PPF) – Guaranteed Returns
PPF is a scheme where you can start investing with as little as ₹500 annually, and the maximum investment is ₹1.5 lakh per year. PPF is perfect for those who want long-term and secure investments. A substantial fund can be built in the long term through this. However, if you invest only ₹500 a year, you won't even notice the returns. Therefore, it's better to decide on an amount that is feasible for you – ₹500, ₹1000, ₹2000, or whatever is possible – and invest that amount every month. The interest rate of this scheme is reviewed every quarter. It has remained at 7.1% for a long time, which is better than many other schemes. Falling under the EEE (Exempt-Exempt-Exempt) category, this scheme will save you taxes in three ways. You can start this scheme by visiting a bank or post office.

3. NPS (National Pension System) – Future Security
NPS is designed for your retirement. It is a market-linked government scheme. This scheme is considered quite good for long-term investment and tax savings. Through this scheme, you can arrange for both a retirement fund and a pension. If you are in your 20s and start NPS at this age, you can build a very large fund by the time you are 60.

4. Recurring Deposit (RD) – Guaranteed Return
Some investments should be long-term, while others should be short-term, so that if you ever need money, you don't have to touch your long-term investments. For this, RD can be a better scheme. You can start investing with as little as 100 rupees. However, the more you invest, the larger the amount you will accumulate. There is no market risk in this scheme. RD options are available at both banks and post offices. In banks, it is available for tenures ranging from 1 to 10 years, while in post offices, this option is available with a 5-year tenure.

5. Gold – Excellent Returns Without Tension
Investing in gold is a very old practice. Experts also advise that our portfolio should have at least 10% gold. But nowadays, for investment purposes, digital gold or gold ETFs are better options than physical gold. Through this, you invest in 24-carat pure gold; there are no making charges, and you don't need to worry much about its security.

Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.