Investment plasn in india

As we know, investing plays a crucial part in wealth creation. It not only assists you in beating inflation to satisfy your financial goals but stabilises your financial future as well.
However, Nowadays, every individual wants to invest in that option, which provides high-returns and assures the safety of principal money. However, it is always advisable to select an investment option that matches to investor’s risk profile.

That means the major factors to consider before investing are

  1. Investor’s Investment Goals;
  2. Liquidity Needs;
  3. Investment Horizons; and
  4. Risk Bearing;

Further, if you want to decide the apt option for your option, then here is a list of Top 10 Best Investment Plans in India for you.

Top Investment Options in India

 The top 10 best investment plans in India are as follows:

Stocks

As we know, equity represents a part of ownership in a company and are easily traded electronically in a market place known as Stock Exchanges. Therefore, they are called as one of the best investment plans in India for long-term investors.

Fixed Deposits

An Investor who is looking for both lucrative returns and the lowest risk must go with the option of FD or Fixed Deposit. An FD can ensure the investor assured returns at fixed intervals.

Further, due to its flexibility and convenience, a Fixed Deposit is one of the most chosen forms of investment option in India. Moreover, the investors with high risk bearing choose to invest in fixed deposits to diversify their investment as well as stabilize their portfolio.

Mutual Funds

A Mutual Fund is also known as Collective Investment Vehicles, which is managed by a Fund Manager. A Fund Manager is responsible for pooling in people’s money to invest in stock and bonds.

The main reasons behind investing in Mutual Funds are as follows:

a) Provides Convenience of Low Initial Investments; and

b) Volatile Investment Avenues;

Further, these investments are best suited for those investors who fall under the category of medium risk bearers.

Senior Citizen Saving Scheme

Nowadays, the government is working hard to provide benefits to the senior citizens of the country. As a result, it had started the senior citizen saving scheme, which is best suited for retirees or people who are above 60 years of age.

Further, it is a long-term steady, And secure investment option and investors can get high-interest rates as declared by the government.

Public Provident Fund (PPF)

Now comes the most trusted and common investment plans in India, i.e., PPF or Public Provident Fund.

In PPF, interest rates are charged on an annual basis, andan individual needs to pay a minimum amount of Rs 500 per year.

Further, it has a life span of 15 years, together with the facility of partial withdrawals at various points.

Lastly, this is one of those options that pay steady and high interest rates as prescribed by the government on a timely basis.

Unit Linked Insurance Plan

The Unit Linked Insurance Plan or ULIP provides a dual benefit to its customers. The term “dual benefits” denotes the lock-in period of 3 to 5 years and tax exemption. In this investment plan, a portion of the premium is used for insurance covers, whereas the remaining part of the premium is further invested in Market-linked instruments, such as shares, bonds, etc.

Features of ULIP

The features of ULIP as an Investment Option in India are as follows:

  1. Provides Flexibility to Investor to invest as per his/her risk bearing capacity;
  2. It is a long-term investment and assists in reaping maximum benefits or returns;
  3. Allows the investor to have a Tax-free Maturity;

Therefore, we can say that under this scheme, a premium is paid at a pre-determined time, but the investor enjoys the benefit for the whole policy period.

National Pension Scheme

If an individual is planning to invest in a plan which not only makes his/her retirement better but provides higher returns than other schemes as well, then NPS or National Pension Scheme is the best option.

It is a government-oriented scheme thatpermits an investor to invest in different market-linked schemes, such as debts, bonds, and equity.

Further, the amount of pension depends on the returns from this investment. It shall be relevant to note that there is 75 to 50% exposure for NPS, which stabilises the proportion of Risk-Return for the Investors.

This scheme is regulated and governed by the PFRDA (Pension Fund Regulatory and Development Authority of India), and is open for everyone between the age group of 18 to 60. However, the maximum age can extend to 70 as well.

Furthermore, under this scheme, an individual can withdraw a partial amount up to 25% after 3 years of opening the account.

For Whom it is the Best Investment Option

The investors for whom NPS is the best investment plan are as follows:

a) Investment with long-term financial need;

b) Investors who are seeking a tax-saving option, as it provides additional tax advantages of Rs 50000 under section 80 CCD (1B).

Recurring Deposits

The bank offers RD or Recurring Deposits, wherein the investors are permitted to make regular deposits to earn good returns. This investment plan is known as Term Deposits as well.

Under this option, the investor has the flexibility to choose the tenure of the plan on its own. Normally, the period of maturity ranges from 1 to 10 years.

Further, it shall be relevant to note that an investor can get his/her RD account opened in a bank and can proceed with deposits of fixed amounts every month. Moreover, the interest rate on this investment plan is paid during maturity, together with the amount invested.

For Whom it is the Best Investment Option

The investors for whom RD is the best investment plan are as follows:

a) Investors who are willing to make regular deposits and earn income from interest;

b) Investors who are seeking an investment plan with rich liquidity factor;

c) Investors with low income can invest in RD as well.

GOLD ETF

Gold Exchange Traded Funds, or Gold ETFs are instruments that are a blend of gold and stock investments. These funds are traded on NSE (National Stock Exchange) and can be sold or traded easily like any other investment option.

However, returns on Gold ETFs are based on the prevailing gold prices, which make this investment option completely transparent in terms of pricing.

For Whom it is the Best Investment Option

The investors for whom Gold ETF is the best investment plan are as follows:

a) An Investor who is willing to invest in the Gold Market;

b) Investors with low risk bearing;

c) Investors who want to invest in Gold but do not want to pay additional, making and storage charge;

Real Estate Sector

As we know, the Real Estate Sector is one of the fastest growing industries in the country. It holds immense potential in sectors like housing, commercial, manufacturing, retail, and hospitality.

Further, the reason why this industry is considered for investment because the risk involved in this industry is very and the chance of increased returns (higher property prices) is more.

For Whom it is the Best Investment Option

The investors for whom the real Estate Sector is the best investment plan are as follows:

a) The investors who are seeking for high or inflates value;

b) The investors who are willing to earn regular rental income;

c) Individuals who are willing to diversify their investment needs.

Disclaimer

The main aim of growth begins to write this blog is to spread awareness among the people who want to invest in different investment plans but are unaware of how to choose the same meeting their needs and requirements.

We have tried our best to provide you the in-depth knowledge in a simplified manner. Hope you all like this post.

You can also check out: Voluntary Provident Fund and Its Benefits

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