A homemaker tirelessly looks after the needs of the family. However, they may be financially dependent on their partners. Read on for 3 easy ways for homemakers to create future wealth.
A homemaker is one of the main reasons why a ‘house’ transforms into a ‘home’. They tirelessly keep the family together by focusing on the home and its smooth functioning. However, many homemakers are financially dependent on their partners. They may wish to contribute to the household expenses, children’s education, plan a surprise for their partners, etc. But they are hampered with a lack of finances to do the same.
This situation can change with easy investment options that homemakers can explore to create wealth, such as – and
1. Recurring deposit: The advantages of recurring deposit are several, making it one of the safest and easiest investment options available. Banks offer a recurring deposit account for a pre-defined tenure, usually ranging between 1 to 5 years. The interest rates differ, however, basis the tenure – a longer tenure will attract a higher interest rate.
Homemakers can decide the amount of funds they want to invest each month, and start the recurring deposit account online if their bank permits the same. They will get back all the capital amount invested, and gain capital appreciation with interest.
Disciplined savings, easy investments and a decent rate of interest are just a few of the several advantages of recurring deposit accounts, making them an ideal investment choice for homemakers.
2. Systematic Investment Plan (SIP): An SIP is stress-free way of saving in mutual funds. It is one of the best ways to ensure a disciplined approach to monthly savings and long-term wealth-creation.
A homemaker can begin by putting aside as little as INR 500 each month towards an SIP. It is important to note that there is no good or bad time to start an SIP – the investment will even itself out over a longer time frame and yield growth, whatever the market condition at the time of investment.
Some research on which fund to invest in, the performance of the fund over the last few years, the overall experience of the fund manager, among other factors, is highly recommended before starting an SIP.
3. Public Provident Fund (PPF): The PPF is a long-term tax-saving scheme only available at nationalised banks, authorised private banks, and post offices. It is a lucrative option since the investor does not have to pay taxes on the interest earned. Additionally, deposits made under the PPF scheme are eligible for tax deductions under Sec 80C of the IT Act, 1961.
The current interest rates for PPF accounts stand at 8% p.a. It is important to note that the money is locked down for a minimum of 7 years, with the fund maturing at 15 years. However, investors can take loans on the saved amount at any time after three years, while partial withdrawal of funds is allowed only after seven years of investment.