Top 10 Best Investment Options in India

Everyone in the present world wants a secure future with enough financial cushions to fall back in times of need. But, how can you double your investments without working for 24*7? That is where money works for you. That is where the concept of investments comes in. Money makes money work for you by you investing in various financial options.

List of Best Investment Options in India

Investing is not such an easy job whatsoever. You have to be careful regarding the work you do and choosing the right asset for investment. Evaluate the assets to find out whether they are in line with all your financial plans and goals. Some of the best investment options in India are listed as under:

Equity shares

Investing in equity shares will bring more returns than any other type of asset. High amounts of risk are involved as the returns are directly proportional to the risk involved. Shares are expressed in terms of market value and face value.

Before planning to invest shares in a company, performing a thorough analysis of the company will save you from losses. If you are looking out for long term investments like for 5 to 10 years, this turns out to be a good investment option for generating good returns in the market.

Public Provident Fund

If long term investment attracts you, PPF is the safest investment of the lot. The best part about PPF is that you do not have to pay tax on interest from the earnings of PPF.

The moment you open a PPF account in your bank, the amount you deposit gets locked for 15 years. The locked amount brings compound interest. If you are satisfied with the income you receive, you can ask for an extension of another 5 years.

But the only drawback of PPF is that you cannot withdraw the money before completing a of minimum 6 years. If you are in urgent need of money, you can borrow a loan on the balance of PPF account from the bank.

Gold

Since times immemorial gold has been the safest and popular investment asset to deal with. The only reason behind this is that price of gold keeps increasing over time.

While gold is not earning as many returns as before, but new gold schemes are always coming up to attract customers in various new ways to them to invest in gold like Gold ETF, Gold bars, Gold mutual funds, etc.

Gold investments start from 3 months and going up to as long as 5 to 10 years at a stretch.

Mutual funds

Mutual funds are one of the most popular investment options in India and considered as the best long term investment options. The mutual funds work as a common pool where investors put their money in different ways.

About an investor, you can purchase any number of mutual funds at the prevailing rate known as Net Asset Value. Considering favorable market conditions, these can be later cashed as Higher Net Asset Value for better income and profit. Many mutual funds do not have the concept of minimum investment period making them popular among investors.

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Post Office Schemes

If short term investments attract you, look no further than post office scheme. The monthly income scheme is one of the attractive and best schemes provided by Indian Postal Services. It generates high income with a minimal amount of risk. The returns are given to the customers every month rate of 8.5 % per annum.

Initial Public Offerings

Initial Public Offerings are offerings made by new companies to the public to buy their shares before getting listed on the stock exchange.

The initial earnings are low and investors tend to look out for companies that are promising and likely to have their stock value raised once listed on the exchange. Once listed, the stock value changes over time and with market conditions.

Investing in the right companies will be a long term investment option and considered as low-risk investments. IPOs do have different risk parameters, so be sure to check them out before driving a conclusion about which investment to buy.

Fixed Bank Deposits

Fixed deposits are popular investment options available in India. These are made with banks guaranteeing fixed returns over a fixed period. The tenure varies between 7 days to 10 years depending on the FD.

Individuals can choose tax saver deposits for a minimum fixed period of 5 to 10 years. While investing in FDs, investors can choose between cumulative and non-cumulative schemes.

In the case of cumulative, the interest is reinvested to the principal amount during the time of maturity while in non-cumulative, interest is paid to the investors at the time of underwriting.

Also Read: What are payments banks?

Recurring Deposits

RDs are issued by Indian banks where the investors are allowed to make a good income by depositing regularly. The investors get their flexibility by choosing their preferred tenure.

These RDs range between 1 to 10 years. Individuals can open an RD with their banks and deposit fixed amounts every month. The interest keeps accumulating and is earned at the time of maturity with the money invested.

People with low income can invest in RD to earn good amounts.

Also Read: Top 10 Private Sector Banks in India by RBI

Real Estate

Real estate investments are the safest options with higher returns. The risk is quite low with real estate as the prices of estates keep on increasing every day. However, it might be difficult to sell off the property quickly.

The real estate property can be liquidated as and when the investors choose. Investors can invest in either commercial or residential properties. Investments in commercial properties seem to attract higher returns.

Unit Linked Insurance Plans

It is a type of investment providing investments in equities and bonds along with protection via insurance.

In these types of investments, one part of the premium is used for investing in bonds and stocks while the rest is made as payment towards life insurance cover.

There is so amount of risk involved in the same. The fluctuations in these insurance plans are termed as Net Assets Value.

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These are some of the best investment options in India. The selection varies from person to person. The best investments for you may not be for others. Choosing the right investments is vital to get investments as per your expectations.