How financial investment for middle class people is transforming over the years

The middle class of India, the section of the country which is just left on its own most of the time to fare for itself. The section which occupy the major part of India’s population and the economic infrastructure but sadly is also the most neglected section by the government partially due to the policies and partially to other overlying problems that needed addressing first. But in recent years, government has paid attention for the economic and social development of the middle class and this has brought about some major changes and one of them is the sudden boom in the mutual funds. To know more about mutual funds, click on this https://www.clearfunds.com/fund-house/aditya-birla-sun-life-mutual-fund.

If you are from an Indian middle-class household then much of this article would connect to you. If you have a job with a regular salary or even an uneven salary on the basis of your performance every month then before you retire from the job it is very much important for you have a very stable investment for future uses and the investment is best when it has been started from your earlier phases of the job. These are the very investments that we will be discussing today and we will see that how the methods of investment for the Indian middle class has changed over the period of time.

The oldest method of investment for middle class is real estate investment where people of not only middle class but upper middle and upper class as well used to invest in real estate units and when the value of that unit increased it was sold for a profit. This practise is still there but has seen a very steep decline since quite some time because of many major factors which include Taxes on selling, major red tape issues on purchase and selling and heavy investment in the beginning.

With the passage of time people of the middle started investing in schemes such as provident fund, NSC, life insurances and sorts and these were the schemes run by the government (mostly) thus people had no issues with it in terms of belief. These schemes were very successful ways of investment and they are still in use till this date in quite a considerable amount and these were followed by investment in fixed deposits in the banks and this is one of the schemes where majority of middle class section invests and has been investing since quite a long time and they were not ready to move on and the practises of investment had become stagnant on these very practises. These practises were giving a good return and were very safe in terms of returns and thus the middle class stuck to it.

But all this changed and mostly due to the demonetisation and after that incident banks reduced the rates of these fixed deposits and the various other schemes of that type and these rates were decreased by quite a considerable amount which forced the masses to move on in terms of their choices of investment as the above-mentioned options were no longer much profitable and thus came into picture the most recent section where middle class is now investing- mutual funds. People have embraced this new way of investment and they are exploring the types of funds they can invest in according to the choices and requirements they have and as per what type of return they expect in future.

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