8 Investment tips for a first time investor

Investing for the first time has its own charm and it is a feeling that every investor goes though. Investing for the first time is a crucial decision that you are taking with your hard earned money. It is very important to take this decision with uttermost care.

There are plenty of new options available to first time investors to invest their money intelligently. It is advisable to invest in through SIP mode in balanced funds and tax saving funds. First time investors should avoid the trap of day trading and advice of relatives. Investment for a longer tenure is advisable for first time investors to take advantage of “magic of compounding” rule. The article on Loankuber made me inform about investment strategies for first time investors. This article on http://www.loankuber.com/content/investments/8-investment-tips-for-a-first-ti proved to be very informative and beneficial to me and if you are a fellow borrower you should definitely give this article a read.

Savings Account and Current Account

There are many bank account types which are offered in India by banks. To concise it, mainly 4 types of accounts are maintained- current account, savings account, recurring deposits and fixed deposits. And the most commonly used in all the above 4 is savings account.

Savings account are maintained by the individuals to stash their savings in one place and withdraw it whenever required. The reason why the individuals prefer this account is because they offer interest rates (generally 4%) on the amount. And on top of that the banks provide other banking facilities like cheque, withdrawals, etc. Also, there is a tax benefit of up to 10,000 rupees interest earned per year. If an individual earns beyond 10,000 rupees as tax, then they would be charged tax.

On the other hand, current accounts just cannot be used for saving purpose. These are used to facilitate business transactions and is generally owned by companies.The benefit of these accounts are to indulge in multiple transactions. Also the account owner has the facility of overdraft, ie using more amount of money than what is available in the account.

To know more about Savings account and current account, you should go and read an article http://www.loankuber.com/content/investments/savings-account-and-current-account/. This is very informative and also has more articles on investments.

Short term investment plan

Short term investment plans are those investment options which have a maturity period of less than 1 year. They offer a handsome interest rate on a short amount of period.

Some good short term investment options-

1. Fixed deposit investments- Usually these investments have a maturity period of 3-5 years, but nowadays banks have started offering FD schemes for 6 months to 1 year. Return usually is 9%.
2. Liquid funds- These are mutual funds that can be converted into cash very easily. They offer interest rates between 4% to 10%.
3. Peer to peer lending- This is the most lucrative and productive short term investment. They offer a maturity period of 6 months and their interest rates go as high as 24%.
4. Fixed maturity plans- They carry a maturity period of 1 year and the interest rate in usually 9.5%.

There are many more good short term investment options listed on this article http://www.loankuber.com/content/investments/short-term-investment-plan/. This article proved to be very helpful to me as a prospective lender, and I am planning to invest in peer to peer lending.