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Which Is The Best Investment Plan In India?

Published On Dec 03, 2021 10:00 AM By InsuranceDekho

Investment plans are financial instruments that allow you to build wealth for the future. Individuals can use investment plans to make disciplined and periodic investments into various funds over time in order to achieve their long-term financial goals.

Best Investment Plan In India

Here is a list of investment plans in India that will best suit your needs:

1. National Pension System (NPS)

It is a government-run pension scheme that provides plans based on equity debt, corporate debt, and government bonds for employees from all sectors in India. NPS requires a minimum contribution of Rs 6,000 per year, with no upper limit.

HDFC Life offers saving and investment plans for securing your finances and helping you build your financial base.

2. Equity mutual funds

Stocks are the primary investment of equity mutual funds. An equity mutual fund scheme must invest at least 65 percent of its assets in equity and equity-related instruments, according to current Securities and Exchange Board of India (Sebi) Mutual Fund Regulations. Active or passive management is available for equity funds.

The ability of a fund manager to generate returns is crucial in an actively traded fund. The underlying index is tracked by index funds and exchange-traded funds (ETFs), which are passively managed.

3. Bank fixed deposit (FD)

In India, a bank fixed deposit is thought to be a safer investment option than stocks or mutual funds. With effect from February 4, 2020, each depositor in a bank is insured for both principal and interest up to a maximum of Rs 5 lakh under the deposit insurance and credit guarantee corporation (DICGC) rules.

4. Gold

Having gold in the form of jewellery comes with its own set of issues, such as security and cost. Then there are the making charges,which usually run between 6 and 14 percent of the gold price (and may go as high as 25 percent in case of special designs). Those interested in purchasing gold coins can still do so.

Gold coins are now sold by many banks. Paper gold is another option for gold ownership. Gold ETFs can be used to invest in paper gold, which is more cost-effective. Gold is the underlying asset in such an investment (buying and selling) on a stock exchange (NSE or BSE).

5. Corporate Fixed Deposits

Corporations collect these deposits in order to expand and expand their operations. Though it is similar to bank FDs, the risk is higher than other options, but the interest rates are slightly higher. They offer a 6-to-8 percent annual interest rate.

Take Away

Each of us has some objectives in mind. In order for us to achieve these objectives, we must have a solid investment strategy. Simply earning and saving money is insufficient in today's world. It's critical to find investment avenues that will allow you to grow your money over time in order to be able to afford a home or have a financially secure retirement. It's important to keep in mind that having a goal in mind before you begin investing will help you streamline the process.

You may also like to read - Shedding Light On Post Office FD Interest Rate 2021

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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