A List Of Top Investment Plans In India
Published On Dec 07, 2021 1:00 PM By InsuranceDekho
Table of Contents
- 14 Investment Plans for You
- Public Provident Fund (PPF)
- Mutual Funds
- Direct Equity
- Real Estate Investment
- Gold investment
- Post Office Saving Scheme
- Company Fixed Deposits (FDs)
- Initial Public Offerings (IPOs)
- ULIPs (Unit Linked Insurance Plans)
- Bank FD
- Senior Citizen Savings Scheme (SCSS)
- RBI Taxable Bonds
- National Pension Scheme
Everyone is on a constant lookout for better investment options and financial returns. However, making the right move is a matter of clear planning and long-term thinking. Investments are important because in today's world, just earning money is not enough. You work hard for the money you earn. But that may not be adequate for you to lead a comfortable lifestyle or fulfill your dreams and goals. To do that, you need to make your money work hard for you as well. This is why you invest. Money lying idle in your bank account is an opportunity lost. You should invest that money smartly to get good returns out of it.
The first step in planning your investments is to figure out the right investment that fits your profile and needs. Investment planning requires choosing investments carefully after doing adequate research and not falling for quick-buck schemes that promise high returns in a short time. You must review your stock and mutual fund investments regularly and keep an eye on the tax implications on returns and capital gains that you make from specific investments. In India, there are a lot of investment options that can work for you.
14 Investment Plans for You
Such 14 Best Investment Plans are listed below:
Public Provident Fund (PPF)
Traditionally considered to be among the best and safest investment modes in India, PPF is one of the most popular small savings schemes. PPF account holders can invest up to Rs 1.5 lakh in a financial year while the minimum deposit required is Rs 500. Deposits can be made in lump-sum or in 12 installments. PPF deposits qualify for deduction from income under Section 80C of the Income Tax Act. In terms of income tax implications, PPF accounts also qualify for EEE (exempt, exempt, exempt) tax category, which means an investor is not liable to pay tax at all three levels - investment, earning and withdrawal.
Mutual fund dealers allow you to compare the funds based on different metrics, such as level of risk, return, and price. Also, as the information is easily accessible, the investor will be able to make wise decisions. Besides, Mutual Funds offer benefits in liquidity and professional management.
Direct plans help you to save money on commissions and marketing-related expenses. This small saving is invested in the scheme and it may help you to make extra returns over a long period.
Real Estate Investment
Investment in real estate is one of the most lucrative and beneficial in India, as the potential for development is huge and the market is growing.
Traditionally considered to be among the best options, gold investment schemes offer you the chance to convert a blocked asset into high-value liquidity.
Post Office Saving Scheme
Ideal for retired people who need regular income, it comes with the option of account conversion.
Company Fixed Deposits (FDs)
Company FDs offer higher interest rates than bank FDs and are ideal for long-term investments.
Initial Public Offerings (IPOs)
IPOs, launched by reputed companies, are an ideal long term and low-risk investment option.
ULIPs (Unit Linked Insurance Plans)
ULIPs offer a range of benefits and provide the joint benefits of investment and insurance. Known for tax benefits, ULIPs are among the top investment mediums in India.
Bonds are often liquid; it is often fairly easy for an institution to sell a large quantity of bonds without affecting the price much.
Bank fixed deposits are extremely popular in India. Coming with cumulative/non-cumulative options, bank FDs offer fixed returns over the investment tenure and the returns are payable on a monthly, annual or bi-annual basis, depending on the bank policy.
Senior Citizen Savings Scheme (SCSS)
SCSS are tax free and risk-free investment options for senior citizens above the age of 60. They offer big interest rates and are quite lucrative.
RBI Taxable Bonds
These RBI bonds have tenure of 7 years and are issued in demat format (they are credited to BLA or Bond Ledger Account of the holder).
National Pension Scheme
It is a government-organized pension product for the employees of all the sectors in India and offers plans based on equity debt, corporate debt and government bonds. In NPS a minimum contribution of Rs 6,000 a year is required while there is no upper cap.
Investment is a journey and not a destination. It is a process where you will be making a series of financial decisions with one goal, earning returns and achieving your financial goals without taking too many risks. Investing when you're young is best however you can invest as soon as reasonably possible if all your debt is paid off and you have already built an emergency fund that will provide you with a minimum of 3 months income if you lose your job, then go right ahead and invest immediately whether you are 20, 30 or even 50 years old.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.