In order to maximize your wealth, you need to invest in many financial instruments. For an investor, it is vital to make a well-balanced investment portfolio. One should ensure that investments are made in both safe and volatile instruments. Safe instruments offer you the security and steady returns, whereas volatile instruments are high risk high return in nature and require a large degree of speculation and market knowledge.
There is a Rule of Thumb in Investing. It says that your age is the percentage of safe investment that you should be making. So, if your age is 22, then 22% of your investing amount should be put into safe instruments, and the other 78% should be used to invest in risky instruments. On the other hand, if you age is 60, then 60% of your savings should be used up in safe instruments, whereas only 40% should be devoted to volatile instruments.
Safe Investments make up a very important portion of your investment portfolio. In case of a market crisis, your volatile and risky investments may cost you; but your safe investments which contain a certain degree of guarantee will continue to fetch you constant returns. One of the examples of a safe instrument is a National Savings Certificate. Let us find out more about it.
A National Savings Certificate is a savings bond offered by the Government of India for the integral purpose of small savings and income tax saving investment in India. It forms a part of the postal savings system of Indian Postal Service.
These bonds can be purchased by an adult or a minor. It can also be held jointly between 2 adults. A Trust also has the right to purchase this bond.
Given below are the key features of NSCs:
Given below are the advantages of NSCs:
Therefore, with the help of this article, we’ve learnt how important a tool NSC is. It is safe, flexible, and offers high returns. Knowing this, it definitely deserves a place in your investment portfolio.
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