What according to you are the best investment option in India?
“An investment in knowledge pays the best interest.” – Benjamin Franklin
In today’s world hitting your financial goals and increasing wealth is very important. Maintaining and growing a strong wealth depends on all factors Earning, Saving and Investing.
Investment is one of underrated area we often don’t give so much value to it. But trust me it is a goldmine for your future.
And on the other side many of us understand this and this is the reason why many are always on the lookout for top investment plans where they can double their money in few months or years with little risk. So, the best plan to invest is something we need to build our own.
There are some of best investment option in India, but most important is to decide plans which gives us best return with less or no risk. Risks in investment are not always bad when they have been taken with calculations and market analysis. Wiki defines Investment more in depth.
On the other side we have some orthodox investment plans that gives us risk free returns. So, it is important to know best investment plans that suits us best.
Classification of Investment based on Risk
Investments are often classified based on risks depending upon some factors. Returns on each investment category is also related to risk. Some of high-risk investment can certainly give you higher to huge returns. Let’s talk in detail for all of investment option in India involving risk around.
Investment with Low Risk
There are some investments that gives us guarantee returns. You will often see a systematic and determined returns that is based on interest rates. Some examples of Low risk investments are Fixed Deposit, PPF, Sukanya Samriddhi Scheme and National Savings Scheme.
Investments in this low risk category having lock-in periods which money is liquidated after maturity.
Investment with Medium Risk
Many of higher return plans includes some degree of risk that are also linked to market conditions. It is also possible not to get pre-determined returns at regular interval of time since they depend on market conditions on some factors, but in a long go returns could be beneficial.
One example is debt mutual fund which involved medium risk but still relatively safe.
Investment with High Risk
Stock investments, Equity mutual funds are 2 examples of high-risk investment, there are many but these two are commonly known. Returns on the investments are mainly influence by market conditions.
On positive side they can give much higher returns, but downfall involves high risk since return amount and profit money is not guarantee.
Let’s talk about the best investment planning and where to invest money.
Best investment option in India and Investment Plans
So, now let’s talk about some of best investment planning we can do for good returns. These are best options and we have seen people investing with taking risks in some investment while some of plans gives guarantee returns.
Many of the public companies sell their stock through stock market exchange. With the help of stockbrokers, Investors can buy and sell these shares.
Supply and demand of each company’s stock is tracked by stock exchanges. Depending upon market it can give you best returns sometimes double or triple profit. But if market goes bad, we can expect a negative return as well.
Depending upon your financial plan you can do short-term or long-term investment in stocks.
This is the best investment plan and the safest as well where you are assured fixed interest at fixed intervals of time. It provides options with flexibility to pay and duration depending upon your financial goals.
Fixed Deposit is offered by banks and Non- financial companies. Short term investment plans with Fixed Deposit is also helpful in many ways.
It is one of the best investment option in India if you are thinking in terms of risk-free return. And key here is plan for investments, that is when we want our money to get mature, set a target for some future goal.
It is one of the best options for investment when you are thinking for high returns when investing for long period of time.
The returns are generated as driven by market performance. Mutual fund investment involves higher risk, but it also offers much better returns as compared to other investment options that are available in the market.
Mutual fund offers two largely investment options to invest: –
Equity mutual fund: These schemes monitor the market and search for under-performing stocks and purchase them at low prices with the calculated assumption that these stocks will recover in the long term and will give profit returns.
This investment scheme provides healthy and positive returns as compare to other mutual fund when invested for long period of time.
Debt Mutual Fund: Debt mutual funds works as to invest their funds only in the fixed and generated opportunities. They are considered relatively safe because of the low tenure of securities. As per regulatory norms, they have permission to invest in debt and money market securities considering maturities of up to 91 days. It is also one of the best investing ideas.
4.Senior Citizens Saving Scheme
This is one of best when we think about safe or risk-free investment and one top up benefit is Tax saving.
Offering a regular stream of income and promise of safety with tax saving benefits, It is a best choice of investment for those over 60 years of age. So, what makes in attractive? Correct, high interest rate.
5.Public Provident Fund
It is the most popular scheme in India for long term investment, which offers safety with attractive interest rate and returns that are fully exempted from Tax.
It pays interest rate annually and requires a minimum of Rs 500 per annum investment and maximum is Rs 1,50,000 lakh in a year.
You can open an PPF account in a bank or post-office. We can also earn compound interest on our money.
Real estate sector hold plenty of opportunity with higher returns over a long period of time.
This investing strategy is very simple; you purchase an investment property, and you just hold ownership over it for a period until it appreciates in value, and then you can sell it for a profit.
Plan of investment at right time is the main factor here depending upon market value. This is also considered as one of best investment option in India and people do invest in real estate.
7.Pradhan Mantri Vaya Vandana Yojana
This scheme available for senior citizens and considered one of best. This scheme is offered by LIC of India and promise a guaranteed return in terms of pension at a specified rate for 10 years.
Additionally, It also offers death benefits. Senior citizens with over 60 years can invest in this scheme. And there is no maximum age limit. The maximum investment amount allowed per person is Rs 15 lakh.
8.RBI Taxable bonds
With tenure of over 7 years and having good interest rate, this investment option is considered one of best too. Another benefit holding up with this plan is there is no maximum limitation of investment.
RBI bonds are available via any branch of Reserve Bank of India and are backed by the Indian government. Best part is on the interest which can be considered as return as a regular income. This is also consider as one of best option for investment.
No doubt, It the best investment for every person. We can get high return from gold investment.
In general, to invest in gold directly we have three choices: purchase the physical asset, purchase shares of a mutual or exchange-traded fund (ETF) which shows the price of gold, or trade as an option in the commodities market.
10.Unit Linked Insurance Plan
Thinking for higher returns? Consider Unit-linked insurance investment plans. This is also a good investment plan options available with us.
With a mix of benefits considering Investment and Insurance it also provides us relaxation on our Tax. It also provided variety of features like you can top-up your investment, change with various funds during your policy tenure, choose to increase or decrease protection level.
Very commonly known as RD, is a term deposit plan offer by Indian Banks. It is very flexible mode of investment where you can deposit money at regular intervals and get pre-determined returns that is based on interest rates.
It is safe mode of investment with guaranteed returns. An individual can choose a term that ranges from 6 months to 10 years for investment. During this tenure interest rate remains same which was provided at time of investment, it does not change.
12.Post Office Monthly Income Scheme
Regulated by post offices in India and backed by government is a small saving scheme. Returns can be earned every month in the form of interest. This investment involves no risk and gives guaranteed monthly returns. Consider as one of best investment plan in India for regular monthly income.
From the day account is open maturity period will be 5 years. This investment scheme does not offer any tax rebate.
How to invest money?
Before you ask this question, analyze your financial planning. Check your earning, saving and spending meter.
When we are ready for investment, we should be having a financial goal which we will be hitting with this investment. Map some of the investment ideas that suits you best.
Make sure if you are investing in medium to high risk schemes you already having an emergency fund in parallel just not to get emotionally down with market drops.
There are many investment schemes that can be started online, and you need not to physically travel to company or investor.
I will always suggest making a check list for your financial goals before investment to keep track of your outcome with pre-determined plan.
Perform some more research on what you want with your investment.
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” — Peter Lynch