Are you looking for investment options in India? Are you being puzzled about how to use the surplus amount of money in order to gain a decent amount after a certain time period rather than keeping it idle in your pocket? Well, being self-employed/retired or a salaried person, if this is the problem which you are facing now a day then you have right now entered in the right place to get proper advice about where to invest money in India. Just be patient, read the entire article and gather detailed knowledge about several investment options as well as technique to increase your surplus amount in the most effective way without incurring any kind of unnecessary losses.
Being straight forward, it can easily be said that every human in this world wants to increase his wealth by following different kind of techniques. Several investment options are included in the list of the techniques followed by different person in order to make some more profit. Without having proper financial knowledge, it will surely be seemed as a difficult task for you to know the best investment options in India as it involves proper calculation as well as knowledge about different on-going profitable schemes. Rather than considering it as a cup of cake, being well versed in this field will surely be an added advantage when you are going to choose where to invest money in financial market otherwise you may incur loss due to market dynamics.
Invest Money In India
Before diving into the topic, I want to make clear that choosing a specific investment plan is not at all a random choice. It depends on certain criteria like whether you want to invest sum for short term or long term, the risk amount which you can manage etc. Though it’s not at all a process to be rich overnight, choose the plan wisely after considering the risk factor. Being pensioner, opting for risk free investment plan having assured return will surely be a wise decision to lead a worry free life.
10 Best Investment Options in India
1) Public Provident Fund
Being included in the list of best long term investment options in India, the PPF is solely backed by the central government of India thereby possess 0% of risk factor. It always provides the customer assured return just after the competition of the entire investment plan duration. Being introduced by the National Savings Institute of the Ministry of Finance in the earlier period of 1960’s, this became one of the attractive investment options as being tax free investment option, it always offers compound interest on the acquired sum. This will help you to boost your capital at a higher pace.
Having the lock in period of 15 years, this scheme allows the customer to withdraw his fund at the end of the 6th year only which can be considered as one of the dis advantage but the loan facility available on the capital invested by the customer is perfect solution for this inconvenience. The minimum limit of investment is Rs. 500/- whereas the threshold limit is Rs. 1,50,000/- per year. Extension of the time frame by 5 years can also be done upon the request of the customer. At present the interest rate offered under this plan is 7.6% per annum. To investment money in this government aided scheme, you have to open account in any of the public sector banks.
2) Mutual fund
Mutual fund refers to the aggregation of several funds invested by multiple investors and managed by a single or a group of professional fund manager in order to achieve decent returns. Being one of the best investment plan, it mainly involves in buying and selling of securities provided by different corporates through an oriented approach. Being a beginner in this field, if you want to be fund manager for the invested amount you may incur a huge loss as professional knowledge about the market dynamics is the main key to get profitable returns.
That’s why managing your fund through professional experts will surely be an added advantage for you while you are investing in mutual fund. Having minimum invest amount of Rs. 500/-, there is no upper ceiling of investment. Though the risk factor in this investment plan varies from low to high depending upon the specific mutual fund terms and condition, you will get any interest rate varies from 6% to 13% per annum over the invested amount in most of the cases.
3) Equity or stock market
If you are seeking for more independence as well as control over your invested fund than the earlier mutual fund scheme then this is the right option for you. Here the entire fate of the invested fund is up to you. Having quite resembles with gambling, this investment scheme will either make you rich or you will lose certain portion of your invest amount due to market fluctuations. Nothing except loss is going to happen if you have planned to sit idle just after investing the fund in stock market. You have to dedicated and always updated with the recent happenings which may affect or boost any company’s growth in the stock market to increase your earning.
Relying on the broker is not always recommended as most of times their advices depend on their personal interest which may not be beneficial for you. If you can pick the right corporate to invest your fund, the value investing method may be beneficial for you. The minimum investment amount is Rs. 10 whereas you may invest as much as you can. The risk factor as well profit/loss solely depends on your ability to manage funds.
4) Post Office Fixed Deposit
Being backed by the Govt. of India, this is one of the best way to invest money in India where you are almost assured to get higher return according to the scheme guidelines. Being a resident of India for at least 10 years makes you eligible to open a POTD account in any nearby post office. Investing in this scheme is pretty simple. You have to deposit minimum Rs. 200 by cash or cheque to the nearest post office. Having the maturity of period of 5 years, it lets you enjoy the pleasure tax exemption for the interest amount of Rs. 10000/- every year.
Nomination as well as transfer facility of POTD account provides you more independence through the entire investment duration. To avoid freezing of the POTD account, you have to make at least one withdrawal transaction in a calendar year. Though there is no upper ceiling of investment, keeping the amount of interest acquired every year will be beneficial to exempt the TDS.
5) Company fixed deposit
The company fixed deposit is quite similar with the bank fixed deposit but the main difference is the fate of invested amount solely depends on the condition of the company at the time of maturity. The company FDs mostly offers 1% to 3% higher rate of interest than the banks. Though this scheme is regulated by the certain guidelines of government, it involves certain risk factor as well as limitations too. The limitations include no pre mature with drawl facility, in case of bankruptcy of the company the residual capital of that company at first distributed among the shareholders then to the fixed depositors and default risk due to cash crunch of the company as a result of lesser profit. Being a profitable investment scheme for all the senior citizens, self-employed persons as well as salaried persons, it is advised that reviewing the company’s status is required before investing a lump sum amount.
6) Sukanya Samriddhi Account
Being result of the initiative taken by the central government of India to promote the education of the girl child in order to enhance the entire social status of the country, this investment scheme have been evolved and already secured a rank within the best investment options in India. Having a girl child, if you are planning to secure her future by saving a large amount of money then this is the perfect among all the existing investment options in India. Opening Sukanya Samriddhi Account is a cup of cake. You have to visit to the nearest post office or to the commercial banks to open such account. Having high interest rate of 8.3% per annum, it is long duration investment scheme which can be considered as a dis advantage for few persons.
7) Tax Saving Fixed deposits scheme:
This investment scheme not only yields higher return upon the completion of the maturity period but also provides you added benefit to reduce the tax liability as the invested amount in this scheme gets deducted from the taxable income according to the Section 80C of the Income Tax Act. While investing in this scheme, you have to keep in mind that the entire acquired interest should not cross Rs. 10000/- in a single year otherwise TDS will automatically be deducted by the bank. Being an investor, don’t forget to submit the PAN card in your bank branch where you have such account. Failing to do so, you will be charged 20% as TDS instead of 10% if the threshold limit of interest crosses Rs. 10000/- in a single year.
8) Real Estate Investment:
Simultaneously with the growing need of the residence, the real estate industry is booming in the recent days. This enables the real estate investment scheme as a more secure financial instrument. Upon speculating the huge prospect of the real estate investment in major sectors e.g. commercial, housing, retail, manufacturing & hospitality, it can be considered as a low risk investment option. You will surely not regret by purchasing a plot or a flat as the price will be drastically increased after a certain time period. This will provide you much more benefit than the other risk oriented investment options.
9) Initial Public Offering (IPO):
Being single time occurring event in the life span of any corporate, this refer the introduction of shares for the first time in the market. Investing a decent sum for the IPO of any company having good prospect in the near future will surely be a wise decision in order to get high yields. But there are certain limitations in this case. As the company is going to enter in the share market for the first time, you should analyse the company’s current status as well as future prospect thoroughly. Lack of proper information may be seemed as the hindrance in the initial stage. As your fate in this investment scheme will be determined by the company’s growth, you have to be patient and planning for long term investment will help you to yield a reasonable amount in the future.
10) Unit linked insurance plans:
Being one of the best way to investment money in India, the unit linked insurance plans are not well known at all but it plays a key role in the financial market. Though it mainly deals with the equity and the debt market, it also offers life insurance cover to the investor which makes it unique among all the other financial instruments related to investment schemes. Just like all the other investment plans, it has also certain risk factor but the market fluctuation is calculated over the net asset value of the unit linked insurance scheme which makes it more secure. Equity investment possesses higher risk than the debt instrument. Before investing in this scheme, keeping this in mid will help you to make your invested amount more secure.
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These are all the high yielding as well as popular investment plans currently present in the Indian financial system. I think you have gathered a detailed knowledge about best investment options in India and will hesitate to decide where to invest money to get expected returns. Above all, don’t be fooled by the promise of significantly higher return made by any company. Always read all the terms and conditions related to investment plan before investing your hard-earned money. So, now find the specific investment scheme according to your capital as well as expected maturity period.