New Delhi: When it comes to investment it is usually done with the intent of achieving high-returns as early as possible and without having to lose the principal sum.
This is one of the key reasons that people keenly lookout for best investment options that can help their money to grow over time.
Several investment options in India offer good returns. Today, the market is flooded with options that may confuse you to where to invest the money.
Now, to select whether the investment is best or not largely depends upon your requirement and the risk appetite and then choose the investment options that will fulfil your objectives and requirements.
To create a corpus, important is that the money is invested in the correct financial instrument. If you do not make the correct decision of investment then you will surely miss an opportunity to increase the returns potentially.
Let us have a look at some of the best investment options in India 2020 that will also help you to earn good returns:
Public Provident Fund: The Public Provident Fund (PPF) is a government-backed scheme of investment that has a lock-in term of fifteen years. It is considered to be a safe investment option as the sovereign guarantees back such a scheme. It also offers a high rate of interest when compared to a regular bank account of savings.
Bank Fixed Deposits: The bank fixed deposit is another safe investment option in India. The bank fixed deposit offers a high rate of interest when compared to any of the savings bank account. The investment in five-year tax-saving fixed deposits is covered within Section 80C and the investor can easily deduct up to Rs 1, 50,000 a year when investing in this.
Moreover, the fixed deposits offer a higher rate of interest for the senior citizens. The interest rate will differ across the investment term, sum, the status of residing and the bank. The fixed deposits also come along with lock-in term. In case, you withdraw under the lock-in period then the bank will levy penalty in a form of deducing the interest that is accrued upon the investment.
Recurring Deposit: The recurring deposit is another option to fixed deposits. Within a recurring deposit, the individuals need to invest a fixed amount constantly. Just like a fixed deposit, the recurring deposits also offer high-interest rate when compared to the savings bank account. Besides, you can easily furnish the recurring deposit investment as collateral to access loans securely.
National Pension Scheme: The National Pension Scheme is also another government-backed investment option. This scheme is well-managed by the reputed Pension Fund Regulatory and Development Authority. The National Pension Scheme is a blend of different investments such as corporate bonds, liquid funds and fixed deposits.
There are different schemes within the National Pension Scheme as per your choice and your requirement. The interest rate will differ across the funds.
Equity-linked Saving Scheme: The Equity-linked Saving Scheme is another mutual fund scheme and equity-linked, which is covered within Section 80C. The Equity-linked Saving Scheme has a low lock-in period of three years amidst all Section 80C investment options that makes it more preferred comparatively. It also provides dual benefits of the growth of the wealth and tax deductions. Besides, investing in an Equity-linked Saving Scheme has risk but moderate.
Gold: Investing in gold is one conventional investment option and in India, the citizens are still very much fond of the yellow colour. The investment in gold can be done through purchasing gold coins, bars and jewelry. Besides possessing physical gold, the investment gold can be easily made simply by investing in the sovereign gold bonds and gold ETF’s.
Unit Linked Insurance Plan: The Unit Linked Insurance Plan is one financial tool that facilitates investments in bonds as well as equities and also offer security at the equivalent time. It is a well-integrated plan wherein a portion of the investment is appointed towards the stocks and then the bonds as selected by you. The remaining is then likewise maintained the life insurance cover. However, the Unit Linked Insurance Plan does have an element of risk attached to it.
Real Estate: Another safest investment avenue in India is buying and reselling of buildings and land. It is one such investment option that will earn value with the passing time. You should consider investing in real estate as a part of building the wealth strategy and rest is assured that it will not leave you disappointed. However, when buying a property with the prime intent of investing then it is better to consider all the charges related to it and also the manner you resell or rent it out.
The Bottom Line
Now that you have the set of some of the best investment options in India you can maintain your financial future and security. Many factors are associated when it comes to investment planning and that is indicative of the returns that you are likely to earn, the advantages it offers and also the investment security.
Primarily, consider your horizon of investment and objectives that will help you choose the best investment option. Moreover, the investment options are suitable for both short and long-term and also will help you to save taxes.
Therefore, identify the investment product that suits you the most and then move ahead with the same.