Interesting Investment Advice For 2016

Investors will be confused in trying to find out what is the best investment that is lucrative for 2016. Those who have been investing for over 5 to 6 years may find the decline of Sensex by 6% as a good investment. On the contrary, investors of over a year or two will agree that it is quite worrisome. However, the stock market is not a straight line and investors should be prepared to face some ups and downs in the market.

Dos and don’ts for investors in 2016

• Continue saving and investing not minding about what returns to expect.
• Do not let the asset allocation go out of sight.
• When you notice that the equity portions have shrunk due to decline in equity shares, then it’s the right time to get rid of fixed income devices and raise the stock allocation.

Here are a few tips on how to invest wisely in the year 2016:

1. Try using the e-wallet system as these are predicted to play a major role in the financial year offering decent cash backs, incentives and reward points like the other players PayU, Mobiwik and Paytm. The e-wallet system helps to reduce expenses manifold and it is also a very safe way of handling money without the feat of getting robbed.

2. Direct Mutual Funds is also a nice idea - Direct mutual funds are also a good choice for investors seeking good finance advice in 2016 since the lower charges can yield higher returns.

3. Fixed deposits can be replaced with debt funds - Though FDs are safe they are not tax efficient. On the other hand short term debts; though they have a credit risk and they are similar to those of the FDs interest the tax benefits on these funds is high, especially if they run for more than three years.  This is one of the reasons 8 out of 10 finance planners suggest this move with a thumbs up.

4. Plan to buy your own house in 2016. Over the last 4 to 5 years the prices in the real estate market have dropped and have also stagnated in certain markets. This drop along with the cut in interest rates passed by the Real Estate Bill, makes buying a house a great deal. However, in the first half there may be a few pains and hence it’s better to plan to buy a house in the latter half of 2016.

Purchasing a property is definitely a long term loan commitment and offer tax exemption. At the same time you should be certain that you have a steady job and income to be able to pay the monthly EMIs.

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