When we are growing, we understand the importance of investing our hard earn money, then we always have a question, Where can I Invest 1000 rupees, at the beginning of earning or when we start receiving pocket money. Investment secures your future from the cure, it may be different for everyone some people will have investments for their dream house or some will have for their dream destinations to travel, and many more. So for that it is very important to have an investment plan.
Where can I Invest 1000 rupees?
- Recurring Account
- Public Provident Fund (PPF)
- National Saving Certificate
- Post Office
- Stock Market
- Mutual Fund
- US Stock Market
1. Recurring Account
At the very first time of your investment journey you can surely start from recurring account. It is very easy to understand and easy to invest, you can interlink your saving account and recurring account it will help you when your salary credited to your saving account it will directly deduct from your saving account and added to the recurring account on the date you mentioned while opening your recurring account.
Period and Interest Rate of Recurring Deposits
You can choose recurring account tenure as per your wish i.e. 1 year, 2 year and so on till 10 year, and after completion of your tenure for example your selected recurring plan for 1 year then you will receive 120000+interest amount after one year. Interest rates are different from bank to bank, it will be in between 2.50% to 8.50%.
Where can we Open Recurring Account?
You can open recurring account from banks as well as from Post-Office. The procedure of opening recurring account is very easy. If you wish to open recurring account from bank then you can open it directly just giving your saving account details and bank will interlink both the account by filling form from bank or now a days it is more easy to open by your bank application. And if you wish to open recurring account from Post-Office you can connect with post office agent. and the agents will guide you in detail.
2. Public Provident Fund
Public Provident Fund also called PPF, it is the most reliable source of investing and guarantied value return without any risk, it can be your retirement plan or it can become your saving habit starting from small amount that is from 500/- to 1,50,000/- per year, you can invest at least for 15 years and you can extend in sets of 5 years. You can open PPF account from Bank or Post Office.
Interest Rate and Loan on PPF Account
Annually you will have 7.9% interest rate on your PPF investment. You can get loan on your PPF account, you can avail 25% amount as a loan from your PPF account available balance. PPF account can be open by individual person only and not by any company’s name.
How to Withdraw from PPF Amount?
| Sr. No. | When we can withdraw | Time of withdrawal | Amount |
| 1 | Need of emergency withdrawal like Medical – any serious medical issues to the account holder, their parents, spouse, dependent child. And second option is for educational purpose for account holder or their child | After 5 years of account opening | Available balance in a PPF Account with interest |
| 2 | Partial Withdrawal | After 6 Years of account opening | 50% of total available in PPF account |
| 3 | At the time of Maturity | After 15 Years of account opening | Total Amount with Interest |
3. National Saving Certificate
Indian Individuals or if you wish to open jointly with minor or with adult can open an account for National saving Certificate from nearest or from any Post Office branch. Government of India promotes saving habits in Individuals by this scheme. Any Individual can start from Rs.1000/- and thereafter multiple of 100 you can invest and there is no maximum limit for this Scheme.
What is the lock in Period and Interest rate of NSC Scheme?
Once you open NSC account the amount will be lock for 5 years, after 5 years your able to receive amount with 7.7% Interest rate. Interest will be added to the amount every year but it will receive only after 5 year.
What are tax benefits from National Saving Certificate?
NSC Scheme is a tax free investment till 1.5 lakh under section 80C, afterward it will be taxable as per individuals tax slab.
4. Post Office
There are various investment plan at one place where you can received guarantied value return on your investment only at Post Office. If your reading this article then you will realize that earlier 3 option of investing money also can open from Post Office. So there are other option of Investing available from Post Office Schemes lets understand that also.
Investment in Post Office In Rs.1000/-
| Post Office Scheme | Who Can Open Account | Minimum Investment | Maximum Investment | Interest Rate |
| National Savings Recurring Deposit Account (RD) | 1. Single Adult 2. Up to Three Adults (Joint A/c) 3. A guardian on behalf of minor 4. A Guardian on behalf of person Unsound mind 5. A Minor above 10 Years | ₹100/- | No Maximum Limit | 6.20% |
| National Savings Time Deposit Account (TD) | 1. Single Adult 2. Up to Three Adults (Joint A/c) 3. A guardian on behalf of minor 4. A Guardian on behalf of person Unsound mind 5. A Minor above 10 Years | ₹1000/- | No Maximum Limit | 7.50% |
| National Savings Monthly Income Account (MIS) | 1. Single Adult 2. Up to Three Adults (Joint A/c) 3. A guardian on behalf of minor 4. A Guardian on behalf of person Unsound mind 5. A Minor above 10 Years | ₹1000/- | 1. ₹9 Lakh for Single Account 2. ₹15 Lakh for Joint Account | 7.40% |
| Senior Citizens Savings Scheme Account (SCSS) | 1. Individual Above 60 Years 2. Retired Civilian above 55 Years within 1 month of Retirement 3. Retired Defence Employees above 50 Years within 1 month of Retirement 4. Joint A/c with Spouse only | ₹1000/- | ₹30 lakh | 8.20% |
| PPF | 1. An Indian Individual 2. A guardian on behalf of minor 3. A Guardian on behalf of person Unsound mind | ₹500/- | ₹1.50 Lakh | 7.10% |
| Sukanya Samriddhi Account (SSA) | 1. By Guardian of girl child Below the age of 10 Years 2. Only one account can be opened for maximum two girls in a family
3. In case of twins/triplets more than two account can be opened |
₹250/- | ₹ 1.5 Lakh | 8.00% |
| National Saving Certificate (NSC) | 1. Single Adult 2. Up to Three Adults (Joint A/c) 3. A guardian on behalf of minor 4. A Guardian on behalf of person Unsound mind 5. A Minor above 10 Years | ₹1000/- | No Maximum Limit | 7.70% |
| Kisan Vikas Patra (KVP) | 1. Single Adult 2. Up to Three Adults (Joint A/c) 3. A guardian on behalf of minor 4. A Guardian on behalf of person Unsound mind 5. A Minor above 10 Years | ₹1000/- | No Maximum Limit | 7.50% |
| Mahila Sanman Savings Certificates | 1. A Woman herself can open 2. By the guardian in behalf of minor girl | ₹1000/- | ₹ 2 Lakh | 7.50% |
Advantage of Investment in Post Office
This is the very easy and risk free investment plan and in some of investment plans you will get tax deduction under section 80 C. You can open saving account also from Post Office by Rs. 500/- only and you will get 4% interest rate for individual or for joint a/c. So in the initial days of investment you can definitely think of post office investment plans for better future.
5. Stock Market
From Stock Market you can be the part of your desire companies, only by purchasing the companies share, the day you buy shares, you can also earn high returns from the Stock Market like the company earns.
But before entering in the field of Stock Market you have to learn all dos and don’ts of stock market, in this area you need to study first and then slowly slowly you can enter in the market with the tiny steps at the beginning. Stock Market is a high risk market where you can get highest returns on your money at the same time if you don’t understand the market and invested your hard earn money you can lost all your money.
How to Invest in Stock Market?
Step 1: You can not buy or sell shares in stock market, you need to find a stock broker and open a Trading and DEMAT Account and linked with your bank account.
Step 2: You can start investing by understanding the market, at first you can track records of stocks and then invest in stocks which track records are good.
Step 3: You have to watch and study market for better returns on your investment
Step 4: You can add other stocks also in your portfolio, track record of stocks who perform well and then add to your portfolio.
Step 5: You can set your limit and book a profit on your selected stocks and sell.
Stock Market is about knowing market time to time
Stock Market is a medium of adding value to your investment in a very less time but with all the knowledge, for investing in stock market you should always watch a market, understand the market and gain enough knowledge about market, so consistency is must to gain high returns from Stock Market.
Also Read: What Stocks in Dow Jones Industrial Average
6. Mutual Fund
Mutual Fund is have lessor risk factor than Stock Market. it works in stock Market but if you don’t have time to manage your stock market account or track stocks then you can invest in Mutual Fund.
The main reason is to invest in mutual fund is that the Mutual Fund is managed by expert team, the team will invest on behalf of you, and the experts invest your money in different stocks, bonds.
Diversification
Mutual Fund is not invested in one stock or share or bond it will be invested in different types of shares that gives you variety in your investment journey, that’s why you are at less risk, compare to stock market.
Best for Beginners to understand the Market
Starting your investment journey from mutual fund gives you lessor risk option compare to stock market but it gives you lesser returns also on your investment but in the beginning you get a time to learn and understand the market, once you understand the market you can enter in the Stock Market easily with the help of Mutual Fund.
7. US Stock Market
Once you learn to invest in Indian Stock Market you can diversify your portfolio and you can add variety to your Investment journey in aspects of currency, global market and you can earn extra returns on your investment.
As you all know that US currency has massive impact on Indians mind and U.S. Stock Market also impact other stock markets as well as Indian Stock Market, we used wide range of products which comes from U.S. So we can invest in that products shares and earn returns in dollars.
What is Fractional Share?
In the Stocks Market of U.S. you can find option of buying shares in fraction, that means if you wish to buy Amazon share but one Amazon share amount $123.43 i.e. Rs.10178/- in Indian currency, and that is out of your investment plan then you can buy 1 part of Amazon Share i.e. $123.43/10 = $12.343 and that comes in Rs.1017.80/-
How to start Investing in US Stock Market
You can open an overseas trading account from stock broker and start your journey of investing. for more details regarding How to start Investing in US Stocks Market you can go through above link and get Complete details.
Bottom Line
Here we give seven ideas to the question Where can I Invest 1000 rupees, In each idea you can invest as per your investment goal, you can set your profit or loss benchmark and then invest in stock market. where you can easily earn good returns in small time.
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