How will the Budget 2023 impact your investments?
3 min read . Updated: 03 Feb 2023, 07:24 PM IST
PremiumThe budget typically includes proposals for tax changes, government spending, and initiatives aimed at boosting the economy and addressing key social and economic issues. Below are some of the important points on how the budget will impact your investments
The Union Budget 2023 was announced on the 1st February, 2023. It is the annual financial statement of the Government of India, which outlines the government's revenue and expenditure for the upcoming financial year. The budget typically includes proposals for tax changes, government spending, and initiatives aimed at boosting the economy and addressing key social and economic issues.
Below are some of the important points on how the budget will impact your investments.
a. Mahila Samman Savings Certificate: The government has suggested launching the Mahila Samman Savings Certificate, a one-time new small savings programme, for risk-averse investors. For a two-year tenure and a fixed interest rate of 7.5 percent, it will provide deposit facilities up to Rs. 2 lakh in the names of women or girls with the option of partial withdrawal. The programme is open until March 2025.
b. Monthly Income Scheme: The government has also proposed raising the maximum deposit limit for the Monthly Income Account scheme from Rs. 4.5 lakh to Rs. 9 lakh for single accounts and from ₹9 lakh to ₹15 lakh for joint accounts.
c. Senior Citizen Savings Scheme: The upper investment limit for the Senior Citizen Savings Scheme (SCSS) has been increased from ₹15 lakh to ₹30 lakh.
d. Change in taxation: Changes in personal taxation that were proposed by the finance minister may encourage taxpayers under the new tax structures. This means that customers can now build a diverse portfolio and invest their money in higher return investment options. One such investment option is the Bajaj Finance Fixed Deposit that gives profitable returns of up to 8.10% p.a. for a tenure of 44 months.
e. Easier KYC: By switching from a "one size fits all" approach to one that is "risk-based," the KYC process will be made simpler. The financial sector regulators will also be pushed to develop a KYC system that is entirely compatible with Digital India's requirements. Greater investor interest in capital markets and investment goods will result from a simpler KYC framework, which is a significant advantage. The financialization of savings is booming nationwide and streamlining the procedure would further hasten this trend.
Investment options
With the above-mentioned changes, one has multiple investment options available. Some of the investment options are:
a. Fixed Deposit: Bajaj Finance offers fixed deposits. One can invest minimum of Rs. 15,000 to Rs. 5 crore for a tenure of 12-60 months. Investors can earn FD rates up to 8.10% p.a. You can also choose non-cumulative payout options for regular returns on your investment.
You can also choose special tenure for higher returns on your investment. The interest rates and maturity amount for different sample tenures are:
b. Systematic Deposit Plan: Bajaj Finance SDP allows the depositor to invest a fixed amount regularly, typically monthly, over a pre-determined period of time, at a fixed interest rate. SDPs are known for their safety, stability, and high returns, making them a popular investment choice for individuals looking for a secure and regular source of income.
c. Mutual funds: With just Rs. 100 you can start investing in over 1000+ mutual funds with Bajaj Finance. It allows you to diversify your portfolio and invest invests money in stocks, bonds, money market instruments, and/or other securities.
The best investment option depends on several factors such as your financial goals, risk tolerance, investment timeline, and personal circumstances. It's advisable to consider a diverse portfolio that may include a mix of options such as stocks, bonds, mutual funds, and fixed deposit. It's also recommended to do thorough research and seek professional advice to ensure that you make informed investment decisions.
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