Why you should read this guide to Personal Finance? — Part II — Investments

PART I — https://medium.com/@nehajirafe/why-every-indian-taxpayer-should-read-this-guide-to-personal-finance-part-i-cashflows-36e3afe960fb

When I started my professional journey, my salary was quite handsome for my lifestyle and liabilities. I had a good amount of money left at the end of the month, after all my necessary and unnecessary expenses. I turned to my father for financial advice.

“Don't keep money in your savings account; you would lose value to inflation, instead save it in FD”

It was fair advice, FD rates back then were 8–9% and from a person with limited access to Equity and the data around it. FD was the safest option, followed by Gold and then Real Estate.

Let's talk about each of the investment options.

Banks, Bonds, and Govt Schemes

• As of writing, Bank FD’s have an average of interest rate of 5%. By now, you already know that FD is not an excellent option to beat inflation.
• When you purchase a government bond, you essentially lend money to the government in exchange for regular interest payments. At the end of the bond’s term, the government will repay the face value of the bond to the investor. But again, with a mere average…