Best Investment Options in India
Many top investment companies offer multiple options for investment, so it may seem to be a daunting task to choose the right one. While investment plans are dependent on many factors, some investment platforms offer the best investment opportunities for you to start your journey towards wealth accumulation and growing rich.
1. Mutual Funds
Mutual funds are one of the most popular investment options in India. Amongst mutual funds, equity mutual funds, in specific, are the top-rated as they provide high returns. Some of the best performing funds have generated Cumulative Average Growth Returns of up to 20% in a decade. The point to note is that with such high rewards comes high risks as well. There are many categories of portfolios and styles of investing, but with mutual funds, you can access the best of all to gain optimum income. Investing in these funds is quite simple and straight. Also, you can start investing in mutual funds with a sum as low as Rs 500 a month.
2. National Pension Scheme
The National Pension System or NPS is a government-backed retirement cum pension scheme. With the sovereign stakes backing the scheme, you get the much-needed security for your investment. This scheme provides a monthly pension when you retire. Also, investing in the NPS allows you for additional tax benefits under Section 80CCD (1B) depending on the type of NPS account you hold.
3. Public Provident Fund
If you are a risk-averse investor, then the Public Provident Fund (PPF) is the best investment opportunity for you. PPF is one of the most prominent tax-saving investment options for ordinary people. You can open this account in a bank or even in a post office. This scheme comes with a lock-in period of 15 years, with an option of prolonging your account in a block of five years. If you are a salaried person, then you may find this a great way to keep aside a specific sum every month to invest in PPF. If you need a loan, then you can avail of one against your PPF balance, and even make a premature withdrawal after the 7th year of opening the account. One of the most impressive features of a PPF account is that the interest that you earn on this fund is free from taxation. You have to invest a minimum of Rs 500 a month, while you cannot invest more than Rs 1, 50,000 over a year.
4. Real Estate Investment
Real estate is a good investment option for those who have considerable money in hand. It is an excellent option for long-term investment. The Real Estate Regulation and Development Act (RERA), which came into practice in 2016, has further benefited this market. The industry is well legislated with safety measures in place for buyers and sellers. With the fast-paced development and urbanization, the demand for real estate has noticed a rise like never before. The availability of attainable home loans has removed the boundaries to affordability. It allows buyers to save a substantial amount of income tax annually until the payment of the home loan.
5. Stock Market Investment
Stock investments may not be simple to invest in; it requires monitoring of the performance of your stocks in real-time. However, there has been an introduction of taxing long-term capital gains, the post-tax returns offered by stocks are unmatchable. For investors who can’t afford to invest a certain amount, stock markets provide the advantage of various small, mid, and large-cap stocks such that you can invest in all of them by building a balanced portfolio. You can adjust your portfolio by counting on the risk you are willing to take.
