| Wise financial planning involves investing in the | | | | your fixed deposits. The other type of fixed |
| right funds and shares such that your money | | | | deposits which will give you similar interest rate as |
| does not remain static. You need to set aside | | | | the one which is locked for five years is the |
| some amount for your expenditure and have | | | | sweep in deposits. These sweep in deposits will |
| some invested in your growth fund, Ulip funds, | | | | provide you 6.5% for a year and 18 days |
| tax saver funds, Fixed deposits, Certificate of | | | | duration and lesser for a lesser period. You are |
| Deposits and mutual funds. | | | | free to withdraw it when ever you want with out |
| Different types of investments available are: | | | | any penalty. However, these sweep in are not |
| -stocks | | | | covered under tax exemption as you don't have |
| -mutual funds | | | | a longer lock in period. To enjoy tax benefits, you |
| -growth fund | | | | must opt for fixed deposit for 5 years. |
| -Ulip funds | | | | Certificate of Deposits are invested for a period |
| -tax saver funds | | | | of 30 days to one year. You get your interest |
| -Fixed deposists | | | | rate on the day your deposit matures. If you |
| -Certificate of Deposits | | | | have opted for a period of one year you get |
| What is the purpose behind investing? Is it to gain | | | | your interest rate on that day. If you don't wish |
| higher returns on investment or is it primarily to | | | | to withdraw, you are free to renew your |
| save on income tax. If you are willing to lock your | | | | certificate of deposits on a new interest rate |
| funds for a longer period you can enjoy tax | | | | available on the day of renewal. Here the returns |
| exemptions. For instance fixed deposists which | | | | on investment are fixed! |
| are locked for a period of five years will provide | | | | Mutual funds are subject to market risks. They |
| you tax benefits and some returns in terms of | | | | have a navigation figure which changes along with |
| interest rate. | | | | the share market. These are not covered under |
| Soon after the maturity of your deposits, you | | | | tax exemptions and the returns on this may be |
| can withdraw your deposits. Your interest rate | | | | higher than your tax funds. You must withdraw |
| accumulated for the deposists would be paid at | | | | your funds when the stock market scores a |
| the rate it was fixed when you opened the | | | | good figure. |
| deposit. Current interest rate will not influence | | | | |