An investment is the purchase of goods that are not consumed today but are used in the future to create wealth. At the beginning of the year 2015 many financial advisors had estimated that equities will approximately provide 15% returns, but because of the global economic slowdown, the Sensex had a decline of almost 6% approximately. In the upcoming year 2016, it is recommended for the investors to continue to save and invest.

If they have reduced the equity portion due to the decline in returns and fluctuations in the market, They must eliminate a few fixed income instruments and increase the allocation to stocks. Since the growth potential is stronger in long- term investments. Getting company staff to invest in the social security schemes launched by the government can be very profitable.

Performance In the year 2015 (Approximately)

Fixed income
Real estate


Expectations in 2016:

Stocks: There is not much corporate growth.
No earnings growth in mid-cap stocks.
Fixed income: The Interest rate on small saving schemes to be brought down in line with declining bank fixed deposit rates.  These fixed deposit rates might change on a very low percentage or mostly remain neutral.

Gold: Overall the consumer demand for gold has positive trends of growth, globally. If bond and stock markets face scrutiny, investment in gold might increase.

Real estate: It may see a growth of FDI investments which have again started flowing into the economy.

PC: Investment:


  1. NPS

Investing in the new pension scheme is a good for the salaried class who wish to save more tax. Up to Rs. 50,000 invested in the NPS under the new Section 80CCD (1b) gets an additional tax deduction, over and above the Rs 1.5lakh investment limit under Section 80C.

Few drawbacks: Equity mutual funds can provide better returns comparables as there  is a 50% cap on equity exposure. But these investments are not eligible for taxation. After 60, at least, 40% of the corpus have to be put in an annuity for a monthly pension. Withdrawals are taxable and the pension from the  annuity is taxed at normal rates. The monthly pension from an  annuity will be a mix of principal and interest, but the entire amount will be taxed.

  1. Use of e-wallets.

The RBI granted licenses for payment banks to 11 entities this year. Use of e-wallets have made online transactions easier and it also provides heavy discounts and cash back offers which have led to the rise in discretionary expenses. This cash back offer helps to save.

  1. Replace fixed deposits with debt funds:

The short -term debt funds almost offer the same returns as that of the fixed deposits with banks, but these short- term debt funds are eligible for tax benefits. The short- term capital gains are added to the investors monthly income and taxed at the normal rate applicable to his income.

  1. Monetize gold investments

Gold bonds offer 2.75% interest and don’t levy any charge.
These gold bonds are linked to the price of gold and offer 2.75% interest. If we assume that gold prices will rise by 4%, the bonds will yield an annualised return of 6.75%. This is higher than that of the gold deposit scheme. These bonds offer various advantages, that is the investors need not worry about the purity of gold and the return is 2.75% over the price of gold at the time of investment so he can avail higher returns and need not worry about the safety.

  1. Buy a house

Real estate prices have been falling off lately. With interest rate cuts and the passing of the Real Estate Bill, Buying a house gets easier. But for a long term gain investing in houses is always good.

The Last one Buy social security schemes for a maid, driver, watchman, sweeper, etc. that is for staff.  It is to spread awareness among the uneducated among the various tax benefits schemes available to them. Like Pradhan Mantri Jeevan Jyothi Bima Yojna, It offers term insurance cover with a death benefit of Rs. 2 lakh for which he/she has to pay just Rs.330 per year.
As an investor, there are various tax benefits the government offers to us, proper research and diversifying the portfolio accordingly could fetch us more returns.




  1. The income tax department is strict and vigilant and one way or other they intend to cover more people in d tax net and have already all CO operative banls have been covered to provide d details of individual interest payment against each account holder. Secondly the industry growth will see a great increase though not in 2016 at least from 2017. Once industrial growth takes place definitely mutual funds earning will increase enormously. Will forward my views based on government functioning with state government election results in d coming provide mail i