If you have spare amounts of Rs 1 lakh or thereabouts, you could look at investments that can churn good returns on this disposable income. Here are 4 investment ideas, where you can invest upto Rs 1 lakh and under.
1. Equity Mutual Funds
If you are not going to require this amount for a long period of time, it is best to stay invested in equity mutual funds for the long term. Over a longer period of time, equity mutual funds have generated a decent return.
If you wish to take a slightly higher risk, you might want to consider small or midcap mutual funds. However, if you wish to stay relatively insulated, you may go for debt mutual funds. We wish to emphasize once again that there is no certainty of returns, so one must be careful and invest only if they are able to take the risk.
2. Bajaj Finance Fixed Deposits
The fixed deposits of Bajaj Finance too are a good bet. The interest rate on these deposits is 8.35 per cent for a period of 36 months to 60 months. So, if you are looking at a decent interest rate, you need to stay invested for a slightly longer term period.
If you are looking at a tenure of 12 to 23 months, the interest rate offered is 8 per cent. This too is not a bad bet at all, considering how interest rates in the economy have fallen.
3. IDFC Bank Savings Account
If you are going to maintain slightly higher bank balance, an ideal bet would be the savings account of IDFC Bank. The bank offers an interest rate of 7 per cent on balances over and above Rs 1 lakh. So, if you an amount of slightly over Rs 1 lakh, you stand to gain.
One of the big advantages of a savings account is that the interest earned is tax free upto a sum of Rs 10,000. The savings bank account also comes with various other advantages, which makes it a good bet.
4. Mahindra Finance Fixed deposits
Here again the interest rate offered is pretty decent at 8.35 per cent. A 33 month deposits fetches you an interest rate of 8.35 per cent, taking your yield to as high as 9 per cent, while the 40 month deposit also fetches an interest rate of 8.35 per cent, but, takes your yield to 9.22 per cent.
This is a AAA rated deposit, which is a safe bet.