In India, investing is a crucial component of wealth building. It aids in reducing inflation, achieving economic objectives, and stabilizing the financial future. You have the option to invest in a variety of things, including stocks, shares, mutual funds, and fixed deposits, rather than having your money remain in your bank accounts. Pick the best investment plan in India as per your needs from a number of options available.
People want to invest to get high returns in a short time without any risk, but the higher the amount, the higher the risk. There are many options of investment plans in India, such as fixed deposits, gold, pension schemes, unit linked insurance plan, and many others. People should know that risk and returns are inversely correlated; the higher the returns, the greater the risk, and vice versa. Keep reading to know the best investment plan in India that should be a part of your portfolio.
Choose the Best Investment Plans in India – Complete List
1. Mutual equity funds
An equity mutual fund scheme must invest at least 65 percent of its assets, per the Securities and Exchange Board of India (Sebi) Mutual Fund Regulations, in equities and equity-related products. Either actively managed or passively managed equity funds are available.
2. Real Estate
It is undoubtedly among the best investment plan in India. Even though real estate investments have historically produced incredible profits, they are not without their dangers and restrictions. The real estate carries several dangers, one of which is the possibility that it won’t be sold quickly. Additionally, if you need to sell the house quickly, you could have to offer a steep discount.
Furthermore, you will need to sell the entire property even if the amount of money you need is less than the asset’s value.
3. National Pension System
It is a scheme designed by the government for the future, enabling you to save a certain amount of money during your working life. NPS is an alternative to a pension, and the program doesn’t mature until the investor is 60. Their age governs the length of the lock-in periods.
4. Bank fixed deposit (FD)
In India, a bank fixed deposit is a relatively safer investment option (than stocks or mutual funds). It is a financial instrument given by the banks or (Non-Banking Financial companies)NBFCs that provides the investor a greater interest rate than the regular saving account until the maturity rate. FD is free from tax under Section 80C of the Income Tax Act. In India, you can open these accounts in just seven days.
Owning gold as jewelry has issues such as cost and safety. Then there are the “making charges,” which usually represent 6–14% of the price of gold (and may go as high as 25 percent in case of unique designs). There is still a choice for individuals who would like to purchase gold coins.
Today, a lot of banks offer gold coin sales. The more cost-effective way to invest in paper gold is through gold ETFs. With gold as the underlying asset, such investments (buying and selling) take place on a stock exchange (NSE or BSE). Also available to investors are gold mutual funds, which is one of the best investment plan in India. Learn more about government-issued gold bonds.
6. Direct Equity
If someone wants to grow money over a long period, investing in equity is the top priority. People do not prefer it because it’s a volatile investment, and there is no guarantee of returns. Furthermore, choosing the right stock is challenging, and it can be challenging to time your entry and exit.
Most assets have some degree of volatility, and typically, higher-risk investments yield higher returns. As a result, the decision to invest is frequently determined by the risk tolerance of the investor. Investments with a medium level of risk include debt funds, balanced mutual funds, and index funds. High-risk investments like instruments like equities and equity mutual funds are examples of volatile investments.
Some of the top investment options in India are fixed deposits, unit linked insurance plan, gold investments, direct equities, etc. So, choose the best investment plan in India per your budget and needs and make higher profits and wise financial decisions.
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