There is a popular saying that money can make money. It means that you can use your money to make more money. But for this, you have to find a good investment option. You need to think of a lot of things like the flexibility of the plan, pre-withdrawal rules, and the amount of tax exemption you will get from the plan before investing your money. You have to think of your requirements when you are going to invest in the long term. But you have to accept the fact that you cannot get all the best things in an investment plan. Every plan comes up with some positive factors that are highly beneficial; on the other hand, there might be some factors that you have to compromise. For example, while you are investing for high liquidity profit, you might not be able to get so many overall returns from the plan. Navi mutual fund is the best performing mutual fund last 1 year.
Best Investment Options In India
You can invest your money into market-linked products like stocks and mutual funds and there is another option that you can invest your money into fixed income products like PPF or Public Provident Fund, bank fixed deposits, and so on. There are a lot of investment options available. Here is a list of the best investment options in the current market.
- Direct Equity
Everyone does not like to invest in stocks as the value fluctuates every time and there is no guarantee of returns. It is quite a difficult task to choose the right stock. But equity can deliver higher returns compared with other asset classes. But there is a high chance of losing a huge amount of your capital. But there are options to stop losses or reduce losses. You have to opt out of the two if you want to avoid risks. A Demat account is required for directly investing in equity.
- Equity mutual funds
The schemes of equity mutual funds invest in equity stocks. According to SEBI, an equity mutual fund invests a minimum of 65% of its assets in equity and equity associates tools. You can manage equity funds both actively or passively.
- Debt mutual funds
Investors who want fixed returns may go for debt mutual funds. The value of this mutual fund does not fluctuate so much. That is why there is low risk in comparison with equity funds. They invest their assets in fixed interest-generating sectors like corporate bonds, government securities, and so on.
- National Pension system
It is a long-term scheme that is created focusing on your retirement. Equity, corporate bonds, fixed deposits, liquid funds, and government funds are all mixed here.
- Public provident fund
In a PPF there is a tenure of 15 years. So you will get a huge amount of tax-free interest from this plan. It is the safest investment. The interest rates of PPF are revised by the Government quarterly.
- Bank fixed deposit or FD
A bank fixed deposit or FD is quite a safe investment in the current market scenario. The investor can get interested monthly, quarterly, half-year, or yearly according to his wish. There is a cumulative interest option too.
- Senior citizens’ saving scheme
Most retirees like the senior citizens’ saving scheme the most as it gives high returns. Senior citizens can only invest in this scheme. Anyone above 60 is capable of availing this scheme from a post office or a bank. You can extend the tenure for 3 years after maturity. The maximum investment limit is 15 lakhs. One is allowed to open more than one account. People will get interest quarterly. The interest rate is reviewed by the government every three months. But you will get the same interest rate as soon as you will invest in this scheme.
To Sum Up
There are also other investment schemes available on the market. In recent times people want to invest in those plans which have a great return with low risk. This article will help you to choose the best plan to make your best investment in the current market. So think carefully and invest your money in a good scheme to ensure your future.