Top Investment Options in India

 

To have a comfortable financial future, you need to plan for it. You always need to keep yourself prepared against any economic fallout such as coronavirus pandemic. Thus, you must plan to plan and start investing that serves as a helping hand during the tough times in life.

Why You Should Invest?

You must start investing, as it helps meet the financial obligations for your various short & long-term goals. Those who can continue investing even during the times of financial emergency, must have done well to meet their financial goals.

Investing help to fund your financial goals such as children’s education & their marriage, buying or constructing a new home, retirement planning, etc. If you are looking to achieve all your goals, it’s wise to go with a proper financial planning.

With the right financial plan, you can kick-start your investing activity that further helps grow your wealth. In case, you have recently sold your valuable assets such as home or jewellery, you can also invest that money that generate more wealth in the long-run.

While investing, you also need to assess the risks involved with the return it offers. You must opt a balanced approach towards the risk & return involve in investments.

List of Top Investments in India 2021

Market-Linked Investments

Equity and Mutual Funds investments are market-linked products and you will receive returns, depending on the performance of stocks.

1.      Equity

Investing in equities come with the potential of high returns. It is a highly-volatile asset class, so there is a high risk involved in this category of investment. By investing for a long-term, equity investment tends to deliver inflation-adjusted returns. It is one of the popular investment options and it offers higher returns than other investments.

2.      Mutual Funds

With a mutual fund, you can invest into stocks, bonds and combination of other asset classes. The mutual funds investment is categorized into equity, debt & hybrid or balanced mutual funds. You can invest into mutual funds, depending on your investment objective and risks involved.

3.      National Pension System

National Pension System also known as National Pension Scheme (NPS) is a market-linked scheme available to all citizens in India. Under NPS, your major portion of investment goes in equities. It is retirement planning scheme in which you can invest during your earning phase of life and achieve financial freedom after retirement. It gives you a regular pension after retirement, so that you can easily meet your expenses post-retirement.

Fixed-Income Investments

You will receive guaranteed returns as per the applicable rate of interest for an investment product.

1.      Public Provident Fund

Public Provident Fund is a government-backed investment scheme that offers guaranteed returns based on the interest rate on PPF investment. The current rate of interest on PPF is 7.1% annually (revised quarterly). In this investment type. You need to keep investing for a long-term period of 15 years, take advantage of power of compounding and build wealth that help fulfil your financial goals as well.

2.      National Savings Certificate

National Savings Certificate (NSC) was launched by the government of India in 1950’s. It offers stable returns based on the rate of interest, which is 6.8% per annum (revised quarterly). In NSC, you can begin investing from a small amount of just Rs. 100 and there is no maximum limit of investment. Its maturity period is 5 years.

3.      Senior Citizens’ Savings Scheme

Senior Citizens’ Savings Scheme is for senior citizens aged above 60 years. You can invest in this investment avenue from a minimum of Rs. 1,000 up to a maximum of Rs. 15 lakh. This investment offers you a regular income along with the assurance of capital protection. The current rate of interest is 7.4% per annum (revised quarterly).

There are some other investment options yan can tap on, such as Sukanya Samriddhi Yojana, Bank Fixed Deposit, Real Estate, and Gold.