Investment Options In India

Some of the top investment ideas in India 2022 that promise significant returns are listed below. While preparing for the future, you may want to consider integrating these investment options in your financial portfolio.

1. ULIP

In India, unit-linked insurance plans are thought to be one of the greatest financial possibilities. ULIP plans provide both insurance and investment benefits. Furthermore, ULIP plans offer the benefit of tax exemption. The lock-in duration for ULIP plans ranges from three to five years. A portion of the premium is used for healthcare insurance, while the rest is invested in market-linked investments such as stocks, bonds, and other investments.

Features Of ULIP:

• Investing in a ULIP is versatile since it allows the investor to invest according to their risk appetite.
• ULIPs are a long-term investment that helps you get the most out of your money.
• You can get tax-free maturity with a ULIP.
• It allows you to pay a premium at a predetermined time and receive benefits for the duration of the policy.

2. Public Provident Fund (PPF)

Among all the investing alternatives in India, this is one of the most secure long-term investment options. It is a tax-free product. The money invested is secured for a period of 15 years. You can also prolong the time period for another five years. The sole disadvantage of a PPF account is that you can withdraw your money before the end of the sixth year.

Features Of PPF

• The capital and interest in a PPF account are safe and insured because it is a government-backed scheme.
• It has a 15-year lock-in period after the investment. After the lock-in term has completed, the lock-in period can be prolonged for up to 5 years.
• The lowest premium amount to be paid on an annual basis is Rs 500 and can go up to Rs 1.5 lakh.
• PPF also gives you the option of taking out a loan against your investment.

3. Mutual Fund

Mutual funds, one of India's most popular investment options, are an excellent long-term investment plan that provides significant returns. It is a market-linked investment option that invests in a variety of financial products, including equity, debt, stocks, money market funds, and more.

Features Of Mutual Fund:

• Mutual funds allow you to diversify your investment portfolio while also assisting you in achieving your investing goals.
• Every mutual fund scheme has an assigned fund manager who assists you in selecting a profitable investment for the fund.
• Mutual fund investments are especially advantageous because they are excluded from the wealth tax.
• Mutual fund investing is transparent, allowing investors to make well-informed decisions.

4. Bank Fixed Deposits

Fixed deposits are one of the most well-known fixed-pay investment options. Profits are paid on a monthly, quarterly, or annual basis, depending on the regulations of the bank. When it comes to the non-cumulative option, interest is payable according to insurance, however in the cumulative option, interest will be re-invested and repaid at maturity.

Features Of Bank Fixed Deposits:

• Investing in bank fixed deposits provides financial security and a secure method for earning high returns on surplus capital.
• Bank fixed deposit renewal is simple, and some banks offer overdrafts against bank deposits renewal.
• The fixed deposit is unaffected by market fluctuations, and the returns are also guaranteed.

5. National Pension Scheme (NPS)

Being one of the greatest government-backed investment options that provides pension alternatives. According to the investor's preferences, the fund invests in bonds, government securities, stocks, and other investment options. It has two modes: auto and active. The money is invested immediately in various asset classes under the auto option, whilst the active option allows the investor to invest in assets of their choice.

Features Of NPS:

• When investing in an NPS, you have the option of choosing between auto and active options.
• Investors can also withdraw money in part through the NPS.
• Even when you retire, the NPS allows you to maintain your independence.

6. Senior Citizens Savings Scheme:

For elderly citizens over the age of 60, the Senior Citizens' Saving Scheme (SCSS) is one of the risk-free tax-saving investing choices available in India. It is one of the greatest investment ideas for seniors because it provides them with a steady income. The scheme offers a competitive interest rate of 8.6% per year, making it a highly profitable investment option.

Features Of Senior Citizens Savings Scheme:

• The nomination capability is available at the time of opening a SCSS account.
• The scheme comes with a high interest rate of 7.4%.
• In the event of a financial emergency, the option to withdraw the funds early is available.
• The duration of this investment scheme is adjustable.

7. Direct Equity

Direct equity is thought to be one of the greatest long-term investment possibilities. Despite the fact that most investors perceive direct equity to be a high-risk investment opportunity, direct equity funds give larger returns than every investment option on the market.

Features Of Direct Equity:

• The buyer looks into the legalities of purchasing a company's ownership.
• Direct equity investment yields a higher return.

8. Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana is available to elderly adults aged 60 and up and provides them with an annual guaranteed return of 7.4%. The system pays pension contributions on a monthly, quarterly, semi-annually, or annual basis, depending on the option selected.

Features Of Pradhan Mantri Vaya Vandana Yojana:

• Regular pension for elderly citizens at regular intervals.
• After holding the scheme for three years, a loan of up to 75% of the purchase price can be obtained.
• Monthly pension for elderly citizens at regular intervals.

9. Post Office Monthly Income Scheme

The Post Office Monthly Income Scheme, as its name suggests, is a monthly savings plan governed by India's Post Offices. A government-backed programme that allows users to save money every month. Any Indian person can register a Post-office MIS account with a small investment of Rs 1500. The maturity time of the scheme, which is 5 years, begins the day the account is created.

Features Of Post Office Monthly Income Scheme:

• You can easily open a joint account with two or three people.
• It is feasible to make money in the form of interest every month.
• You can easily register multiple accounts in your name and invest the funds in the same scheme when they mature.