If you think the film industry is only about entertainment and getting paid in crores, then you are wrong! Read on to find out how your favorite celebrities manage their money.
If you think that the film industry is only about entertainment and getting paid in crores, then you are wrong! Celebrities, nowadays, are not just dependent on acting as their only source of income. From start-ups to real estate to businesses, they are investing well and making wise money decisions instead of just blowing their money on expensive cars and lavish parties.
For example, Bollywood superstar Priyanka Chopra understands that to survive in the risky entertainment business, consistent savings is very important. Her financial portfolio largely consists of real estate and she also has her own production house. Amitabh Bachchan, on the other hand, has invested in many startups like JustDial etc. Apart from Bollywood, Big Hollywood actors like Ashton Kutcher, Ellen DeGeneres, George Clooney etc. are all savvy investors.
Additional Reading: 6 Bollywood Stars And Their Credit Card Soulmates
Now, we may not have the same kind of disposable income and investment opportunities as them, but there are a lot of other investment options that can help us create a sizable corpus and achieve our financial goals. So, without further ado, let’s explore some of the investment options that can help you get ahead financially:
If you have a long-term financial goal that needs to be met after five years or so, investing in Mutual Funds is a smart choice. In the long term, Mutual Fund schemes have the potential to offer far better returns than debt instruments like bank deposits.
From debt to equity Mutual Funds, there are a lot of schemes that you can choose from depending on your investment horizon, risk profile and financial goal. While equity funds largely invest in equity stocks and are more volatile and risky, debt Mutual Funds, on the other hand, are less volatile and primarily invest in corporate bonds, government securities, treasury bills and other money market instruments.
Check this: How Mutual Funds Work
If you have a low-risk appetite, Fixed Deposits (FD) can help you meet your mid to long-term goals. FDs come with various tenures ranging from 7 days to up to 10 years. According to the deposit insurance and credit guarantee corporation (DICGC) rules, your principal and interest amount are insured up to a maximum of Rs 1 lakh.
As per your needs, you can opt for monthly, quarterly, half-yearly, yearly or cumulative interest option. FD rates vary across banks, therefore, it’s smart to shop around for higher interest rates before investing your money.
Additional Reading: 7 Reasons Why Fixed Deposits Are Better Than Savings Accounts
Public Provident Fund:
The Public Provident Fund (PPF) is one of the most popular investment options among Indians. It is a risk-free investment scheme that allows you to build retirement savings and offers tax benefits. The scheme was introduced by the government to provide retirement security to employed and self-employed individuals.
The lock-in period here is 15 years and your account will mature after a period of 15 years from the end of the year in which the account was opened. On maturity, you have the option to extend the tenure in a block of 5 years, with or without making new contributions. The rate of interest is set by the government every quarter based on the rate of government securities. The current rate of interest, effective 1st April 2018, is 7.6%.
Read more about PPF here.
Apart from these, there are other investment options like the National Pension System, Recurring Deposit, Gold etc. that can help you manage your money well. But, before investing your money, it’s important to determine your current financial situation and then set goals accordingly.
Now that you’re all set, go ahead and explore your options right away. We have a ton of investment options exclusively for you!