When you invest, you must question, analyse, examine all the possible loopholes and only park your hard-earned money in instruments that prove to be true winners. To ensure this outcome, take a look at a checklist that you should keep in mind.
Fees and charges: Understand if you have to pay any processing fee or hidden charges as this will ultimately lower your gains from the investment.
Don’t follow the herd: Just because FDs seem like a safe option doesn’t mean you should invest in them, especially if your investment goal is retirement. Basic research will tell you that FDs are best invested in for a short period to earn inflation-beating returns. So, instead, consider special tenor FDs to earn higher interest on your investment amount.
Check your tax slab and tax liability: When planning any investment, check the tax exemptions you can make use of as well as the net gains you will enjoy given your tax slab and tax treatment of the investment option. Be it an ELSS or ULIP, this approach will give you the best results.
Steer clear of gimmicks: Schemes that promise to double your money in a few weeks are scams in all likelihood. Unless and until you scan the fine print thoroughly and are 100% sure of the legitimacy of the vehicle, don’t invest. After all, you don’t want to incur a loss instead of making a gain.
Forecast your returns: Whether your goal is retirement or saving for a home’s down payment, make it a point to forecast your returns with the help of an online calculator. This will give you a clear picture of whether you’ll get the amount you need within the stipulated timeframe, regardless of whether you seek a lump sum at maturity or regular payouts.
Arm yourself with these pointers to be able to make a sound investment and accurately predict your returns. With these facts on your fingertips you’ll be able to translate your goals into reality more effectively.