Pocket Money - SEBI Investor Awareness Website - Securities and ...

2. Mr. Bipin Dey, a college student: Saves a small amount every month and deposits themoney in his savings bank account The savings bank account offers him an interest of 3.5%.But he wants his money to grow faster. His college classes and practical assignments keep himfairly busy. He does not have the time or the expertiseto invest in share market. Wants a solution within the bank.Mr. Eureka says: Either an S.I.P or a Recurring DepositAccount would be the best solution.Mr. Eureka’s assistant explains:____The major advantages of SIP:(i) Power of compounding: Money grows more due to theeffect of compounding.(ii) Discipline and convenience: A small amount investedregularly does not pinch much but adds up to a big sum.The process is also very convenient as the contributioncan be made directly from the bank account.3. Mr. Rucha Bhatia, a professional: Earned a considerable amount through out the year,invested a lot of money in shares, fixed deposits,Systematic Investment Plan and growth mutual funds. However, at the end of the year she had to pay hugeamount of income tax. Wants a way to reduce her tax liability.Mr. Eureka says: The option for you is National SavingCertificates.73