Happy new year 2017
Wishing you a very happy and prosperous new year from all of us at DivyaAdvisor.com. Apart from taking the opportunity to wish you for the new year I also wanted to take share some advice on investment for the year 2017. I hope you will all earn and pay more income tax compared to last year. Continue reading for investment options for the year 2017. Invest wisely and make most of your money.
Investment Options for the Year 2017
- Term Plan – it is not an investment but a necessity. Investment here can also get you income tax benefits.
- Medical Insurance – another must have. Choose from many options available. It is not an investment option for year 2017 but a necessity. Investment here can also get you income tax benefits.
- Emergency Fund – It is not an investment option for year 2017 but a necessity. Consider having at lest 3-4 months of your monthly expense as your emergency fund.
- Your own house – you should have one house of your own, one where you can live. I am expecting real estate rates to fall down as black money is squeezed out of the system. It is not an investment option for year 2017 but a necessity. You also get exemption on principle and interest for income tax purpose.
- Equity – Markets down mean good rates on some premium companies. For the choice of stocks, contact your advisor unless you are a market pundit yourself. If you hold for more than a year your income is not taxed.
- Equity mutual fund – This is best suited option for an average person. Qualified fund managers ensure they do the investment in equity on your behalf. When markets are down you are presented a good opportunity to buy some quality stocks / funds. If you hold for more than a year your income is not taxed.
- Long term fixed deposits – Treat this as a limited time offer. Make the most of fixed deposit rates before they tumble down. it is inevitable that the interest rates will go down substantially as banks have more money than ever. Keep in mind any income on this option is taxed under your existing income tax bracket.
- LIC of India plans – you can invest in it as a portion of your debt portfolio. LIC Jeevan Akshay can also be considered for long term assured returns as unlike Fixed Deposit rates will not change every few years. This option gives you benefit of income tax and is tax free on return.
Investment Options to avoid in the Year 2017
- Gold – I do not see it shining this year, global market clues are suggesting a further decline in value.
- Real Estate – expect rates to go down as black money is squeezed out of the system. Rentals are also expected to remain flat or decline as more housing units will be offered for posession this year.
- Bonds – Expect rates to fall down further this year.