The second wave of the corona has already hit Bangladesh. This made a huge impact on the economy, but the situation is comparatively better than last year. The government has already withdrawn the lockdowns, and the economy is running again despite the high infection rate. So, if you have savings, you may think about further investments to multiply the net worth. Nevertheless, no investment is risk-free, and it is not possible to avoid 100% risk by investing with a deep analysis, but there are possibilities to reduce the capital. We have found some safe investment plans in this Covid-19 pandemic.
Should you Save or Invest During the Pandemic?
We all are in a critical situation. If this is considered, it is better to save money for now - which can help to serve our basic needs and help in difficult times. But it all depends on you. If you have enough savings, you may go for a small investment. Any investment decision where you are expecting future wealth, you should be careful before taking any decision. Since the economy is not stable yet, it would not be appropriate to make a large investment decision. If you are able to take more risk, then you can think of large investments by following the right strategy.
However, most of us like to avoid the stock market in order to reduce the risk of financial matters and invest our money in various savings schemes. Different investment opportunities provide more capital protection than the stock market but are not able to give higher returns. So, at the moment, you should set aside some of your savings in case of an emergency.
Where to Invest? Decide Yourself
When we talk about investments, we keep aside the industrialists and big businessmen. They have their own money; they can easily take loans from banks and financial institutions. They can do business with it; they can also build a factory. But ordinary people with low incomes have a minimum idea of where to go and what to invest in. Hence, many do not understand and live in confusion. Following are the low-risk investment plans, and some have no risk at all.
There are not many investment opportunities in Bangladesh! Those who do not want to take the risk or have no chance to take a risk, can buy sanchayapatra. Needless to say, Sanchayapatra is better than any conventional investment option in the market.
At one time, the National Savings Department used to advertise in daily newspapers for the sale of sanchayapatra. The department has not been giving such advertisements for several years. Because people already know the benefits of it. There are currently four types of sanchayapatra in Bangladesh, 3 Monthly Interest bearing Sanchayapatra, 5 Years Sanchayapatra, Pensioner Sanchayapatra and Poribar Sanchayapatra.
The highest profits are made from Pensioner Sanchayapatra. The interest rate at the end of the term is 11.76 percent. However, not everyone can buy these savings certificates even if they get more profit. Only retired government employees can buy it.
At the end of the five-year term, the Poribar Sanchayapatra yields a profit of 11.52 percent. At the end of 5 Year Sanchayapatra, the interest rate is 11.28 percent. 3 Monthly Interest bearing Sanchayapatra are valid for three years. The interest rate on these savings certificates at the end of the term is 11.04 percent.
Banks can be one of the best alternatives for investing in Sanchayapatra. Long-term investments, as well as Fixed Deposits (FDR), can also be made. Money can be kept every month too. All public and private banks can be the place of investment. By understanding, researching, and deeply judging, one can keep the money even in financial institutions (leasing). They pay more interest. In that case, of course, the idea of investing in low-risk or risky companies should be avoided.
There have been days when your money in the bank would have doubled in five to six years. However, no bank offers such opportunities anymore. The interest rate had also changed since April last year. The loan interest was fixed at 9 percent and deposit interest was fixed at 6 percent. However, some banks still double the money in 7 to 10 years, while some banks take 12 years.
If you keep FDR in the bank, the interest rate that the bank talks about on the first day of the contract usually does not change. Almost all banks have the opportunity to keep FDR.
Post Office Savings
Once upon a time, there were three types of accounts - Post Office Savings Bank (General Account), Post Office Savings Bank (Term Account) and Post Office Savings Bank (Bonus Account) - where people could keep the money. The bonus account has been closed since 1992. The other two are still running.
One year ago, the interest rate on general accounts of the Post Office Savings Program was 7.5 percent, and the interest rate on 3-year accounts was 11.28 percent. Ordinary savers across the country were outraged when the general account interest rate was reduced to 5 percent in February last year and the term account interest rate to 6 percent. Later, the government maintained the interest rate as before.
The special feature of the two accounts is that Bangladeshi citizens of all classes and professions can put money into it. Nominees can be appointed, can be changed, and can be canceled for both post office savings accounts.
The stock gives more profit than any investment. However, this investment must be long-term and must be understood. Moreover, good companies usually pay a 10 percent dividend at the end of the year. The factors to consider when investing in the stock market are the fundamentals of the company, earnings per share (EPS), price-to-earnings (PE) ratio, net asset value (NAV), an average of dividends, company debt and the country's economy, sometimes political situation.
The lower the price-to-earnings ratio of the company, the better it is for investment. Usually, a 10 to 15 PE ratio is better. More than that is a little risky. However, investments can be made if the company has the potential to increase revenue. Because if the income increases, the PE ratio will decrease.
Investing on Lands
Excluding all, if anyone thinks that land is the money. In that case, the investor can buy the land. Land prices usually go up year by year. Sometimes, depending on the land's condition, the value doesn't increase. So, you have to understand the value of the land before making a buying decision. Many people buy low land and fill it with soil but sell it at a higher price. But be careful before buying land. Check the documents, check and select again and again.
The interest rates of Sanchayapatra and Post office savings are subjected to change depending on the decisions of the respective authorities. The stock prices of different companies may increase or decrease from time to time.