After working continuously for five years at a company, you become eligible to receive gratuity. This payment serves as a token of appreciation for your long-term service. The amount you receive is determined by the length of your employment and your salary, calculated using a specific formula, and it is directly deposited into your account. Typically, gratuity amounts are substantial, often in lakhs. Instead of simply keeping this money in your bank account or spending it, consider investing it for potentially greater benefits. Here are some investment options for your gratuity amount.
Fixed Deposits (FD)
Investing in a fixed deposit at a bank or post office is a secure choice. It provides guaranteed returns, making it ideal for those who prioritize the safety of their funds over high returns.
Equity Mutual Funds
These funds invest in the stock market and can offer higher returns over time. You can select from various mutual funds based on your financial situation, risk tolerance, and investment horizon.
Debt Mutual Funds
Debt mutual funds focus on bonds and other fixed-income securities, providing stable and lower-risk returns compared to equity funds.
Sovereign Gold Bonds
Sovereign Gold Bonds provide a secure and digital method for investing in gold. They come with tax advantages, a fixed interest rate, and a designated lock-in period. However, the chance to invest in these bonds arises only after an official announcement from the government. To participate in SGB, you need to apply within the specified dates set by the government.
Digital Gold
Another option is to purchase digital gold using gratuity funds. Digital gold allows you to buy gold online in an electronic format. You can acquire it through apps like Google Pay, Paytm, and PhonePe, ensuring that the gold you receive is guaranteed to be 24 carat pure. Additionally, there’s the flexibility to convert your digital gold into physical gold, and you can start investing with as little as Rs 1.