Tuesday, November 20, 2007

Where do you park your savings?

You want to accumulate a sum of money and every month you are putting in more savings into your investment and you don't need the money in the foreseeable future. You can consider the following options:
  1. Savings Accounts: The interest rate is so low that it can't even meet the onslaught of inflation.
  2. Fixed Deposits: Interest rate is higher than savings account. May be it is just enough to cover the inflation rate.
  3. Bond Funds: When interest rate goes down the value of bonds go up and vice versa.
  4. Investment-linked insurance policy: It offers a better return and you are 'forced" to save on a regular basis which is your main aim.
  5. Unit Trusts: Like investment-linked insurance policy it offers a better return. However it is affected by the ups and downs of the stock exchange. It is a very suitable vehicle for regular savers.
  6. Share Market: The return is good. The risk is also high.
  7. Real Estate: It is very good for long-term investment but the initial investment sum is substantial.

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