Make Smart Money Investments Moves In -2019

The year 2019 as we all know is an election year, in which every person is mentally prepared for the elections. As we are coming to an end of the first month January it is never too late your financial goals for the year 2019. In a year there are some months where we have excess money but in wisely investing the money we all become spendthrift and blow up our hard earned money. The previous year 2018 was a very eventful year as equity indices touched an all-time high, but closed the year with inspired returns of 5.90%. The broader indices were the worst and most asset classes generated below average returns due to extraordinary global and domestic developments.

Last year, it was observed that the average salary in our country rose by more than 10% and this year it will also grow beyond that point. The analysts contend that the equity market will do very well after the poor show in the last couple of previous years. The global economic and geopolitical developments will have a much bigger impact on the share markets. Also, there is uncertainty about the interest rates in which direction will move. There are several smart moves an individual can make and earn an extra amount of money by investing his money in the proper direction. Hope one will find these moves interesting and these moves are as follows:-

1. OPT FOR SHORT TERM DEBT FUNDS:- Due to the uncertain nature of long term debt funds, they are risky in nature. Given the various uncertain interest rates movements, and other external factors they bring looses. So one should stay away from these long term debt funds and go for short term debt funds. Due to the shorter nature and variable fixed interests, these serve as a smart move and one can earn profit from them. On an average, if a person can hold them for 3 years or more than they can give 20% or more on their yield.

2. Use SIPS to benefit from Volatility:- Stock prices also fluctuate within a narrow band in the run to elections and will move sharply after the polls outcome. During this period of heightened volatility do not stop your equity sips, if you stop buying sips you are likely to miss the opportunity to accumulate fund units at a low cost and by the time you restart, markets will have been already moved up! 2 to 18 months is the best period for your sips returns.

3. Harvest Capital Gains from equity mutual funds. Regular churning will keep gains below Rupees One Lakh threshold. The monthly sip inflow into mutual funds rose more than 20%  during the last year. One should consider harvesting capital gains regularly to prevent gains from building up. Soon Sip gains may be taxable.

4. Invest in the name of senior citizens (parents/inlaws etc). If you are staying with your parents or inlaws then one can start investing one's money in their name. Not many people know that till rupees 60,000/- is tax-free and in addition to it one can gift them with small saving schemes like that off in post offices which is also tax-free.

5. It is time to seriously consider in investing in NPS. Last year all the NPS funds have given double-digit returns. NPS also reduces tax in a significant way. 

6. Lastly, if you are in the younger bracket of age group (25 to 25) then one can go in for pension plans. These pension plans will make one future secured as it will pinch your pocket today.

By investing the money one can easily counter the inflation as well it increases ones wealth during this year we all are going to have sufficient funds but only a very few handfuls will take this opportunity to invest their money wisely. I have started making my smart move in investing money, but have you. If not then it is the right moment to make your smart move...