Do you think that your primary source of income is enough to fulfill your dream? If not you need second income source. Another reason of having second source of income is to live risk free financial life. Opting for Second income source is like taking insurance policy.
Imagine the situation if you are dismissed from your job unexpectedly or all of sudden you made huge loss in your business. At this moment if you have second source of income it is easy for you to survive. Keeping only single source of income is like standing on single leg and ready to lose balance anytime.
So second source of income is must but million dollar question is how? So I am herewith simple Ideas of generating second source of income.
A Second Income Source Generation Ideas
Share Your Expertise
First idea for generating second income source is to earn money by sharing your expertise. All I mean is start something as per your expertise. Some example could be tuition class, drawing class, dance class, karate class, yoga or fitness class etc.
Sell your Creation
Second idea for generating second income source is sell your creation. If you are creative than money is waiting for you. Start small shop with creative items like customized t-shirt, show piece or house hold items. You can sell these stuff online even.
Start Service Business
Another idea is to start service business. Start providing service some examples are IT services, Electrical services, advertising service, bill payment service, match making service, catering service, tiffin service, baby sitting, data entry service, event organizing etc.
If you are IT savvy than Internet money is waiting for you. Yes you can generate a good amount of money from internet. Start website or blog and earn revenue through advertising network like google adsense, sell photographs or stuff online to earn money.
You can find out part-time job or profession for generation of second income source. Profession could be insurance advisor, real estate agent, interior decorator etc.
By Investment
Second source of income can be generated by making investment also. If you have surplus money you can invest in stock market, real estate or in other good investment avenues to generate second source of income.
Remember what warren buffet said “Never Depend on single source of income, make investment to create second source”.
So what do you think about these second income source do share your views!
My friend Suresh is looking for a safe investment option. In the recent past he lost a couple of money in the stock market and now he wants to invest only in safe investment options.
I know many of you must be looking to grow your wealth without taking on too much risk. While high-risk options like stocks and cryptocurrencies may promise skyrocketing returns, they can also lead to massive losses. If you’re more inclined towards stability and security, there are plenty of investment options in India that offer consistent returns while keeping your capital intact.
In this guide, we’ll walk you through the 10 best safe investments in India that can help you secure your financial future. Whether you’re a risk-averse investor or just looking to diversify, these options are worth considering.
10 Best Safe Investments in India
Bank Fixed Deposit
Tenure – 7 Days to 10 Years
Expected Return – 6-8%
Tax Applicability – Taxable at investor slab
A fixed deposit from a bank is said as one of the best safe investments in India because as per the guidelines of RBI, the bank needs to take insurance of the deposit placed by you.
In fixed deposits rates of return are fixed and known, there is no uncertainty. Tax is applicable as per slab on FD to avoid TDS on FD you can submit form 15H/15G. You can download 15H/15G form from here.
Fixed deposit investment gives a moderate return and is best for small investors.
Recurring Deposit
Tenure – 6 Months to 10 Years
Expected Return – 7-8%
Tax Applicability – No TDS by Bank but interest is taxable at investor slab
A recurring deposit is a special kind of deposit where you need to deposit a specific amount at monthly intervals. In simple terms, it is making a fixed deposit every month. The return of a fixed deposit will be slightly higher than a fixed deposit as in a recurring deposit you are making investments in parts.
Tax Applicability – Amount for Investment is deducted from your taxable income up to 1 Lac (80 C). Tax is applicable on interest income.
Tax saving deposit is another form of safe investment. Tax saving fixed deposit is fixed deposit which you can use for tax saving. The drawback with tax saving fixed deposit is your money will be locked for 5 years.
PPF (Public Provident Fund)
Tenure – 15 Years
Expected Return – 7- 8.8%
Tax Applicability – Amount for Investment is deducted from your taxable income up to 1 Lac (80 C). Return in tax-free.
PPF is one of the safe investment option. PPF will give you very good return provided you wait for 15 years. No other fixed investment instrument can match return of PPF. Even return from PPF is tax-free.
MIS (Monthly Income Scheme)
Tenure – 5 Years
Expected Return – 7- 8.4%
Tax Applicability – Interest income is taxable
MIS is post office scheme suitable for retired employees/ Senior Citizens. You can invest from 1500 Rs/- to 4.5 Lakh in this scheme. It is safe investment option as Post office is directly managed by government of India. As name suggest interest income can be withdrawn by investor on monthly basis.
SCSS (Senior citizen saving scheme)
Tenure – 5 Years
Expected Return – 7-9%
Tax Applicability – Interest income is taxable, Investment amount is eligible for 80 C deduction.
Senior citizen saving scheme is for senior citizen only. Senior citizen can visit nearest post office or designated bank to open senior citizen saving scheme account. This scheme gives good returns but investment is allowed by senior citizen only.
NSC (National Saving Certificate)
Tenure – 10 Years
Expected Return – 7-8.8%
Tax Applicability – Interest income is taxable, Investment amount is eligible for 80 C deduction.
NSC is another safe investment with decent returns. NSC can be purchased from Post office.
FMP (Fixed Maturity Plan)
Tenure – 1 Year or more
Expected Return – Depends but yet comparable to fixed deposit
Tax Applicability – Interest income is tax-efficient
FMP is another form of safe investment. Compared to FD here insurance is not taken as capital protection and returns are not fixed but yet it is found that FMP gives better returns compare to FD. FMP falls in the category of mutual funds.
Debt Mutual Funds
Tenure – Variable
Expected Return – Not fixed
Tax Applicability – Tax on capital gain and dividend
Debt mutual funds are like FMP only, return in debt mutual funds is not fixed so if you don’t want any uncertainty this option is not for you. Debt mutual funds invest money in fixed investment instruments. Debt mutual funds are easy to buy and sell. In recent past debt mutual funds has given good returns.
Saving Bank
Tenure – No maturity
Expected Return – 4 -7%
Tax Applicability – No tax applicable up to 10,000 Rs/ interest
Savings bank is another safe place to place your money, especially emergency funds. Don’t place excessive money in saving bank consider another investment options like FD etc.
When it comes to investing, safety doesn’t mean compromising on returns. The options listed above offer security while helping you grow your wealth in a risk-free or low-risk manner. The key is to diversify your investments based on your goals and risk appetite. If you’re looking for tax-saving options, PPF and NPS are great choices. If regular income is your priority, SCSS and POMIS are ideal. Want long-term wealth creation? Debt mutual funds and government bonds are worth considering.
Pick the investment that aligns with your financial goals, and watch your money grow safely!
FAQs
1. Which is the safest investment option in India?
Fixed Deposits, PPF, and Government Bonds are among the safest investment options in India.
2. Can I get monthly income from any of these investments?
Yes, Post Office Monthly Income Scheme (POMIS) and Senior Citizens Savings Scheme (SCSS) offer regular income.
3. Are there any tax-saving safe investments?
Yes, investments like PPF, EPF, NPS, and SCSS provide tax benefits under Section 80C.
4. What is the best low-risk investment for beginners?
Fixed Deposits and Recurring Deposits are great low-risk options for beginners.
LIC of India new Varishtha Pension Bima Yojana will be launched on Independence Day 15th Aug, 2014. Varishtha Pension Bima Yojana is guaranteed pension plan for senior citizen.
This pension yojana initiative is taken by government of India for the welfare of senior citizen of country. As per advertisement it is subsidize attractive pension scheme, with LIC as exclusive administrator. Let’s look at detail of this scheme.
LIC Varishtha Pension Bima Yojana
Eligibility – 60 years of age and above
Single Lump sum Premium –
Minimum Rs 66,665 (For Monthly pension)
Maximum Rs 6,66,6665
Pension –
Minimum Pension – Rs 500 per month
Maximum Pension – Rs 5000 per month
Benefit –
The pensioner will get pension during his entire lifetime
Assured return of 9% monthly (9.38% annually)
On demise of pension, Nominee receives pension price
Pension payment method – Monthly, Quarterly, Half Yearly, Yearly for life time
For more information refer to following poster by Government on Varishtha Pension Bima Yojana.
Rakesh Jhunjhunwala of Rare enterprise is rare personality. Rakesh Jhunjhunwala according to me is true champion of Indian stock market. Rakesh Jhunjhunwala is real inspiration for stock market investors.
Today I will share 12 unusual stunning facts of Big bull Rakesh Jhunjhunwala.
12 Unusual Stunning Facts of Rakesh Jhunjhunwala
By Stock market investment Rakesh Jhunjhunwala has made Rs 5000 Cr from 5000 Rs/- in 30 years. Imagine making 5000 Cr in 30 year.
According to Forbs magazine Rakesh Jhunjhunwala is considered as 46th richest person in India for 2013 with net worth of $1.25 billon.
Rakesh Jhunjhunwala is many time referred as warren buffet of India and he is known to be a big fan of Bollywood. He has produced one hit movie called English Vinghlish.
He has taken pledge to carryout charity and he will donate 25 per cent his wealth in his lifetime.
Rakesh Jhunjhunwala enjoys few lakhs of rupee as dividend and he spend one third of his dividend income in charity.
Rakesh Jhujhunwala networth was Rs 3461 Cr in 2007 and value of his holding has plunged to Rs 1130 Cr in 2008 down turn. Although his wealth was plunged by one third he remain invested in stock market.
In past one year he has made daily gain of Rs 8.4 Cr in stock market. This gain is equals to million dollars a day.
Net worth of Rakesh Jhunjhunwala was nearly growing by Rs 60 Cr a week and 240 Cr month. If we break down further he made hourly around Rs 35 lakh in stock market. This money is enough in buying Audi or BMW car every hour.
According to latest report combined net worth of Rakesh Jhunjhunwala and his family is Rs 7261 Cr compare to Rs 4192 Cr last year. In last one year net worth of rakesh jhunjhunwala jumped by 73%.
Rakesh Jhunjhunwala current net worth is beating market cap of 96% of listed companies.
Titan, Lupin, CRISIL are hot favorite stock of Rakesh Jhunjhunwala His family holds equity share of over Rs 100 Cr in each of these companies.Apart from equity he also hold properties in Mumbai worth more that Rs 100 Cr.
Rakesh jhunjhunwala is foodie in nature, he love to watch food shows. He love Chinese food & dosa on street. As per report he is found of Horse and he own number of horses.
