Investing important cash:

During the entire first year of my college period, I used to travel by bus. In the second year, I wanted to buy a two wheeler since I had my ACS classes everyday at 6 A.M. Though I didn’t (don’t) want my parents to spend cash for me, but still I thought a two-wheeler would be comfortable to attend my classes in the early morning.

When I told my father, he didn’t have adequate cash but he borrowed money from someone and bought me a bike the next day. Years ran by, I used it for about 13 years and treated it like my friend (people used to comment that they can walk more faster than my driving :-). I used to drive very slowly / carefully, keep it clean and service it once in 3 months – all because that I liked it a lot.

Since it became aged and also the fact that I use my car, I could not use it regularly and hence, did not want to spoil its life. I sold it off to someone for 8k in 2008.

While carrying this cash, I was thinking how to spend it. Definitely for investments, but where? Being a finance professional, my investment portfolio is across almost all investments.

I understood that my father bought it during critical time and also that I liked my bike a lot. Hence, I want that money to be invested in guaranteed instrument and also want to have it for longer period of time.

Suddenly I remembered that I haven’t contributed to Public Provident Fund (PPF) for about a year, and thought investing this money on that would be wiser. It’s a guaranteed investment portfolio and also would stay for 14 more years (2 years are already over).

I was able to do it last March and feel happy about it.

Guys / Gals: If you want to invest your money in guaranteed instrument, for a longer term and with reasonable return of 8%, I would strongly advice PPF.

Forgot to mention that my bike never carried any gal in the pillion and perhaps, that’s the reason for it being so memorable :-)