Saving bank accounts will go off

Everyone thinks of investing, but few consider optimizing their investments by utilising the various options at their disposal. ‘Market returns generated by an investment avenue are a factor of the risk borne.’ is much touted sentence of their economic know-how.

For too many investors, saving money means putting their hard-earned income in a savings bank account. A notion of ‘money working hard for you’ never finds place in their brain. All investments are then routed through this savings account. Moreover they have an edge over other silly people on a shopping spree wasting bucks inconsiderately.

Unlike assured return schemes (like fixed deposits and NSC); wherein the investor’s capital is protected and returns assured investors in market-linked avenues run the risk of losing their capital. But when you consider the pittance investors make on their savings account (currently 3.50% per annually= Bank offered rate minus the inflation) it is surprising that this ‘standard practice’ still finds countrywide acceptance. And given the current upward trend in the soaring inflation rate of 6.74% noticed currently, earning on savings account may go poorer!!!

Hope We Indians look at the way to break from the standard practice of investing through banal assured return schemes (Bank saving account) to a more lucrative investment option. Mutual funds are replacing the traditional avenues of investments like stocks, bonds, fixed deposits and even gold (with the launch of gold exchange-traded funds) and real estate (with the launch of real estate investment trusts). In no time saving bank accounts will go off for sure. At least hope so for betterment of educated Indians. Cheers!!!