Most people have questions about the best investment options available in India. To reap maximum benefits in a specific period with minimum risk, every investor aims to invest in the Best Investment options in India. Others invest in fulfilling their investment goals, while others invest in financial security. It is important to decide which investment options to choose based on your risk appetite, investment horizon, financial goals, and liquidity needs.
Public Provident Fund (PPF)
Among all the investment options available in India, this is one of the most secure options. The investment is tax-free. PPF accounts are open at banks and post offices. Invested money has a 15-year lock. Moreover, compound interest can be earned on the accumulated money in this investment option. It is also possible to extend the period by five years. PPFs have the only disadvantage of withdrawing your invested money after the 6th year. The balance in the PPF account may be used to borrow money if you require it.
Mutual Fund
Mutual funds are one of the best investment plans that can provide high returns over the long run in India. Market-linked investments invest in various financial instruments, including equity, debt, stocks, and money market funds, among others. They generate returns according to market fluctuations. Despite the high level of risk associated with mutual funds, they offer much better returns than other investment options.
Fixed Deposit
FDs provide fixed returns over a fixed period. Profits are paid monthly, quarterly, or annually, depending on the bank policy. Investment options for FDs vary by bank, ranging from cumulative to non-cumulative. Normally, non-cumulative options pay interest, and cumulative options reinvest the interest and pay it out at maturity. In FD, interest is paid for non-cumulative options and reinvested for cumulative options. The best part of investing in FD is that you can calculate maturity amount by FD Interest Calculator India. It is also possible to open an FD account in a post office, as the post office interest rate is quite similar to banks and other financial institutions.
Direct Equity
A direct equity investment is considered one of the best long-term investment options. Direct equity funds offer higher returns than any other investment option on the market, even though most investors consider them high-risk investments. Investing in direct equity plans requires certain aspects to be considered, such as picking the right stock and timing your entry and exit in the market. If you intend to invest in direct equity, make sure you know how to analyze a share stock before investing.
Post Office Saving Scheme
It is a monthly saving scheme regulated by post offices across India to help you save monthly. Every month, the users can save money with this scheme, which is government initiative. Any Indian citizen can open a Post-office MIS account for as little as Rs 1500. The scheme’s maturity period begins the day the account is opened, which is 5 years.
As well, both individuals and groups of investors can open POMIS accounts. Investors looking for a scheme that offers tax-saving options should not opt for this instrument, as neither the maturity amount nor the investment provides any form of tax rebate. Post office Interest rate varies till 6.7%, if you invest for 5 years. In Fixed Deposit scheme, post office interest rate varies from 7-7.8%.
Gold ETF
Gold Exchange Traded Funds are financial instruments that combine gold investment and stock trading. In the same way any company stock can be bought and sold, the Gold ETF can be purchased and sold with relative ease. Gold exchange-traded funds (ETFs) are passive investments based on the price of gold, allowing for complete transparency in terms of pricing when it comes to gold. When the market-linked instruments are volatile in terms of risk, higher returns are frequently offered as a result. As a result, it is recommended that you conduct research and obtain complete and accurate information about the product and its position in the market before committing to a financial instrument.