Greetings, friends! Today’s topic is how to utilise your money to the optimum. We have money in the form of short-term funds, savings, or a lump sum cash.
Let’s start with a basic understanding of how to use short-term funds. This money could last anywhere from a few days to several months.
Whether it is the funds lying in savings or corporate bank accounts, or cash flow from a customer, all these may not yield returns if left idle. Such assets could be linked to an FD with your bank or transferred to short-term debt or overnight funds, which might yield returns of 5 to 6% per year.
We can earn interest on these funds regardless of the amount or the number of days.
For example, if you have received 1 million from a customer on a Thursday and it is a long weekend, you can ideally transfer this amount to overnight funds and receive it back with interest on Monday morning.
Even larger organisations use this strategy and earn huge interest on their unutilized funds.
So let’s start doing this wherever possible. You may be required to do KYC or documentation in the beginning, to finish the formalities, and later can set on auto mode.
Another simple option is to hire a dependable fundmanager who can assist you with the correct investment opportunities and manage your fund to maximise your investment results.
The other two topics, savings and the lump sum amount, will be discussed in the upcoming blog. Best wishes for your reading! Happy investing.
Disclaimer: Investment in markets are subject to risk.
About the Author :
Nitin Bhandari, a passionate & certified research analyst with over 15 years of experience in Equity Markets and founder of Heet Investment, a financial brooking firm in Bengaluru. You can get in touch with him on nitin@heetinvestment.co.in