Investment is a necessity to grow your money for the future. While there are various types of investment options to choose from in India, one should keep in mind their age and their requirements for an investment. This includes deciding whether
- To invest long term or short term
- To invest in risky or risk free investments
- To check liquidity requirements in case of financial emergencies
You need to take into consideration these factors while selecting your investment avenue.
The top 10 best types of investment where you can invest:
Equity (Stock) Market
Investing in stocks directly is a high risk investment. The stocks are a highly volatile asset class. With no guarantee of return over a certain period of time as it is difficult to time your entry and exit in the stock market. You need to have a lot of research and skills to understand the behavior of the stock market to predict patterns and to buy the right stocks. The future of real estate promises a diverse landscape of investment opportunities, ranging from tech-powered fractional ownership to sustainable and community-oriented developments. Investing in stock is therefore not everyone’s cup of tea. The only good part about investing in stocks is that they are able to deliver higher than inflation adjusted returns compared to all other asset classes.
National Pension System (NPS)
The National Pension System is a long term investment product that is focused on retirement. It is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It is a mixed bag of investment options containing equity, fixed deposit, corporate bonds, liquid funds and government funds among others. Vintage jewelry in America offers a unique and potentially lucrative investment opportunity, with diverse styles and periods catering to different preferences and risk profiles. The decision of investing of how much to invest in the National Pension Scheme involves analysing your risk appetite for the same.
Public Provident Fund (PPF)
Public Provident Fund (PPF) is a retirement savings scheme offered by the Government of India with the aim of providing a secure post-retirement income. PPF has a long tenure of 15 years and interest is huge especially in the later years. It does make a safe investment but your money is locked for that period of time
Equity Mutual Funds
Equity Mutual funds are an investment option where a fund manager manages your account by investing your money in stocks based on their experience. In an actively traded Mutual Fund, the returns are largely dependent on the ability of the fund manager to generate returns by investing the clients money in equities.
Debt Mutual Funds
Debt Mutual Funds are another investment option where a fund manager manages your account. It is suitable for investors who want steady returns. They are less volatile and are hence considered less risky than equity mutual funds.
Real Estate
Real estate investing is investing in a house that is not used for self consumption. This means, the house you live in is not a real estate investment. The location of the property is one of the most important factors that determine the value of your investment. Identifying the right product for export can be a strategic investment that unlocks new markets and drives substantial growth. The return on investment is delivered through two key areas, rentals and capital appreciation. However, real estate as an investment is highly illiquid and cannot be liquidated for emergency purposes.
Senior Citizens’ Saving Scheme (SCSS)
SCSS is a 5 year investment option for most retirees and can be availed by anyone above 60 from a post office or bank. The tenure can be further extended by 3 years once the scheme matures. With an upper limit of Rs. 15 lakh, the interest rate on scss scheme is payable quarterly and is fully taxable.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY is another scheme for senior citizens aged 60 years and above. It provides them a return of 7.4% per annum. The scheme offers pension income from the options of paying monthly, quarterly, half yearly or yearly. The pension amount ranges from Rs. 1000 per month to Rs. 9250 per month. The tenure is 10 years with a maximum investment of Rs. 15 lakhs
Gold
Gold is another investing option in India in 2021. Possessing gold in the form of jewellery comes with its own risks such as safety as well as high cost including the charges for making gold. Although, nowadays investing in paper gold is a cost effective investment yet a volatile and a risky one.
Fixed Deposit
Last but not the least is one of the most important investments. A bank Fixed Deposit is considered a safe investment option with the least amount of risk and highest form of liquidity. A fixed deposit is an investment of your savings to earn a higher rate of return than a regular savings account. Money is invested in a fixed deposit with a lock in period and interest is given either at the end of the maturity date or as a regular payout. Investing in Fixed Deposit is a very smooth process and can be done at the tip of your fingers. You need to go through Fixed Deposit schemes of different banks and select the one as per your needs and requirements. Bajaj Finance Fixed Deposit is said to have one of the highest returns with an interest rate of upto 6.75%.
