Investment schemes are crucial financial tools through which you can achieve your financial dreams. Often, your income alone is insufficient to fulfill your goals. Investments act as an extra source of earnings that can make a considerable difference to your overall financial security. However, choosing a suitable investment option requires in-depth planning and foresight. Start off with the best investment plans in India and find the most suitable investment avenue for you as per your financial course.
10 most profitable avenues of investment in India –
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Fixed deposit
If you value safety in your investments, you cannot pick a better product to invest in than fixed deposits. Several reputable financial institutions offer competitive interest rates on FDs.
Furthermore, additional facilities such as a higher rate of interest for senior citizens and loan against the fixed deposit are some of the enticing features that make FDs one of the best savings schemes in India. Such features are provided by leading financiers such as Bajaj Finance. However, keep in mind that the interest you earn through FDs is considered a part of your income and is taxable.
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Equity mutual funds
A mutual fund, where the corpus amount is invested in equity stocks, is an equity mutual fund. Due to the ever-changing nature of the stock market, equity mutual funds are risky investments that can yield considerable returns. You can choose active or passive management of these mutual funds, as per your preference and the ability of the mutual fund manager.
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Debt mutual funds
Individuals looking for a steady stream of money from their investment can opt for debt mutual funds. These funds invest your money in government securities, corporate bonds, treasury bills and in other money market instruments. Debt mutual funds can act as a monthly income scheme due to their fixed returns.
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Direct equity
If you possess intricate knowledge about the stock market, there can be no better investment option than direct equities. However, if you have a limited grasp over the volatility of stocks and the way it works, you should instead invest in safer instruments, like fixed deposits. Consider which is better for you between fixed deposits vs. equities, high risks plus high RoI or no risks and low RoI.
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Public Provident Fund
If you are looking for long-term risk-free gains, the public provident fund is the best investment plan in India for you. With a lock-in period of 15 years and compounding interest, you can accumulate a substantial amount at the end of the tenor. Additionally, both the principal and interest for your investment is backed by sovereign guarantee, making PPFs one of the safer options in this list.
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National Pension Scheme
As long-term investments, you can also consider the national pension scheme or NPS. While it cannot fit into any monthly income scheme, you can maintain an NPS investment with just a minimum amount of Rs. 1,000. The principal amount in NPS is invested into a mixture of schemes, such as fixed deposits, government funds, liquid funds, and others.
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RBI taxable bonds
With the fixed tenor of 7 years, these taxable bonds offer a return of 7.75%. The demat bonds are credited to your Bond Ledger Account or BLA. You receive a Certificate of Holding as proof of the investment if you choose to put your money in these instruments.
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Senior Citizens’ Saving Scheme or SCSS
The best investment plan in India for senior citizens or retirees, SCSS offers a return of 8.3% per annum. The interest you earn through this scheme is payable quarterly. Normal tenor is 5 years but you can extend to 8 years if you wish. Currently, you can invest up to Rs. 15 Lakh into SCSS.
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Gold
Possession of gold as an asset is risky and expensive. Instead, one can opt to invest in gold ETF. The transactions in such an investment occur on the stock exchange, with gold being the underlying commodity being bought and sold. You can also look into Sovereign Gold Bonds as an investment scheme.
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Real estate
If you purchase a second property aside from the one you reside in, that second house can be a real estate investment. Buy when prices are low and sell after a few years when the property prices in that area start to improve.
While a certain degree of risk benefits your investment profile, ensure you perform the necessary research about these instruments before investing. Understand which products suit your needs and financial situation before proceeding.
