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Which Are The Best Investment Avenues In India In 2022?

Published On Dec 11, 2021 10:00 AM By InsuranceDekho

Investment is the practice of allocating funds to various financial instruments with the hopes of receiving a benefit or return in the future. It essentially entails retaining an item or asset with the goal of generating income or growing the investment's value.

There are two ways to profit from investing. First, you can benefit if you invest in a saleable asset. Second, you will earn money through capital gains accumulation if you invest in a return-generating plan.

Best Investment Options Available In India In 2022

Listed below are some of the best investment options you can invest in 2022 to avail greater profits:

1. Stock Market Investment

Only if your risk appetite matches your investing objectives should you invest in stocks. It is a competitive advantage that a company has over its competitors and peers that can lead to increased market share.

You should diversify your stock portfolio by buying stocks from various sectors and industries. Investing in equities through a systematic investment plan, or SIP, can assist. It is a process in which you invest a set amount of money in the stocks of your choice on a regular basis. It allows you to average out your stock purchase costs over time when you invest at various market levels.

2. Mutual Funds

One of the most popular investment alternatives in India is mutual funds. Mutual funds that invest primarily in stocks are known as equity mutual funds. Over a long period of time, it has the ability to outperform inflation. It's important to remember that big rewards are accompanied by high risks. Only if your risk tolerance allows you to invest in equity funds to meet your investing goals.

Only after checking the fund manager's investment style should you choose mutual funds. Investing in these funds is a straightforward and simple process. It enables you to invest small amounts of money on a regular basis in your preferred mutual fund plan.

Mutual funds come in a variety of forms, including equity, debt, hybrid, solution-oriented schemes, index funds, and fund-of-funds schemes.

3. Public Provident Fund

The Public Provident Fund (PPF) is a good investment option for risk-averse investors. For the average person, a PPF is one of the most popular tax-saving investing options. This account can be opened at any bank or post office. PPF accounts have a 15-year lock-in term, with the opportunity to extend it in five-year increments.

If you are a salaried individual, the PPF may be a good investment option for you because it pays a greater rate of return than bank FDs. A PPF account qualifies for the EEE tax benefit, which is one of the most appealing benefits. Section 80C of the Income Tax Act allows you to deduct up to Rs 1.5 lakh from your investment each year. Furthermore, both the interest and the maturity withdrawal are tax-free. 

4. National Pension Scheme

The National Pension System (NPS) is a government-sponsored retirement savings plan. You obtain the much-needed safety for your investment with the scheme's sovereign guarantee. Because you must invest 40% of the corpus accumulated at 60 years in an annuity plan, you will receive a monthly pension when you retire.

NPS invests in a variety of asset types, including Equity (E), Corporate Bonds (C), Government Securities (G), and Alternative Investment Funds (AIF) (A). If you're a cautious investor, corporate bonds and government securities may be a good place to start. Young, ambitious investors, on the other hand, may prefer to allocate a bigger percentage of their portfolio to equities. Under the NPS's active choice, you can put up to 75% of your money in shares.

5. Real Estate Investment

For people with a lot of disposable cash, real estate is a wonderful investment option. It's a great long-term investment opportunity. The demand for real estate has risen to unprecedented levels as a result of rapid development and urbanisation. Affordability restrictions have been reduced thanks to the availability of affordable house loans with low interest rates. It also enables buyers to defer paying income taxes until the home loan is paid off.


Some of the aforementioned investment options offer guaranteed returns, while others are linked to financial markets. A well-balanced portfolio of fixed and market-linked options can help you accumulate wealth and financial independence over time.

Also read - Know How To Double Your Earning By Investing In Short Term Investment Plans

Which Investment Option Is Best For Me?

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.

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