Best Investment Options In India For 2022
This is the time to start investing in India. India's Most Famous Investment Plans in India For 2022, and Finding the Best Financial Plans In India is depending upon so many elements, Now here we are providing you the best Financial Plans for you.
“Patience Is A Key Element of success” – Bill Gates. Reading this quote we will get Inspiration, If we Follow it as a life rule then anyone can get Success.
There is one thing that some people won't admit, that is the word Investment is not close to everyone. But after the Pandemic -2020, most of us learned a lesson for a lifetime.
People who even not thought about Investing before is now started hunting different types of Investment opportunities in India for financial security. Here we are going to know some major Best investment options below.
Types of Investments:
If you don’t know investment types, now you can know everything in brief. There are two types of Investments Plans are Short-term Investments and Long-term Investments. Investors have to choose the best Investment Plan type based on their financial requirements and by necessarily contemplating the Risk propensity of the investor.
Short-Time Investments:
Short-time investments can be made by investors excess money for a short period, to achieve their short time Goals with low risk and moderate returns. These investments can be liquidated into cash easily. The short-term investment instruments duration will be 1 to 5 years. Some Main Short-Term Investment Plans In India
Which Is the Best Short-Term Investment Options In India?
- FIXED DEPOSITS (FD)
The fixed deposit scheme is one of the most traditional Investment Options in India. These bank FDs are constantly giving moderate returns to investors over some time. The Banks are offering interest rates "between” 5% to 7% based on FD investment Tenures. The tenure of the FDs starts from 1 Month to 10 Years.
Almost all of the Indian Banks are offering the Option of FD for all Indian Citizens. The minimum FD starts from Rs. 1000 and there is no Maximum Upper limit. There will be Tax benefits for FDs according to Income Tax slabs by the Indian government.
2. RECURRING DEPOSITS (RD)
RDs are also one of the best Short Term Investment plans available for all our citizens. By this RD option not only Rich and Middle-class people it also has the special option for all that the depositors can invest their money monthly wise. This scheme offers depositors Good returns same as FDs. And has the flexibility to withdraw at any time (but there will be no interest paid for premature withdrawal within One month).
The profit from Recurring Deposits is considered as Income of the depositor and it is Taxable. As per income tax slabs that suit every individual.
3. MUTUAL FUNDS (LARGE CAP)
Thees Mutual funds are the funds that are invested in some Large Cap companies, for example, companies that are listed in Nifty 50 and Nifty 100. Mutual Funds are invested in stock market equity. There are many banks and Financial Institutions providing opportunities to invest in mutual funds in India.
The Returns from Large-cap Mutual Funds are taxable. As well as that income is taxed at 10% to 15% per annum. The Risk involved in Large-Cap Mutual funds is low, also the period is 3 to 10 years.
4. POST OFFICE FIXED DEPOSITS
Post Office FD is also one of the Long-Established Scheme provided by Post Office Bank which is organized by the Indian Government. So the returns are guaranteed for people. Post Office FDs can be accumulating the interest rate between 6.6% to 7.4% per annum.
The maturity period of the Post Office FDs is 1 to 5 years tenure. The minimum investment can be started with Rs. 500. However, the interest achieved is taxable on basis of that depositor’s income tax slab.
5. NATIONAL SAVINGS CERTIFICATE
NSC Scheme is also provided by the government of India. Hence the scheme is guaranteed fixed returns. This investment option has no premature withdrawal facility. The people can invest a minimum amount of INR. 1000. Returns on this scheme are Taxable, tenure is fixed as 5 years.
Long-Term Investments:
Long-term Investments are made by Investors based upon their long-term financial goals. The goals which need huge capital amount likewise which can take a long period.
A few examples for Long-Term Investments are planning to buy a Home, Children’s Education Planning, Retirement Planning, and Pension Planning. This investment period can take 10 to 15 years. People can choose an investment product according to their financial needs.
How many best Long-Term investment Options are there?
1. MUTUAL FUNDS
In India, the most desired Investment option is Mutual funds. These Mutual funds can give high returns although they involve high risk. There is Mutual funds are classified as per asset class. Equity Mutual funds are the most popular Mutual funds in India. Investors can start with a minimum amount of INR. 500/month.
In India, so many government banks and private banks are allowing this investment product, and also there are many SEBI-approved Financial Service Providers and stockbroker companies providing this investment product.
2. PUBLIC PROVIDENT FUNDS
It is also called as PPF scheme which is one of the famous schemes used in India. This financial instrument is purely for the long term which is a block-in period of 15 years and having with an option to apply for the extinction of 5 years.
It has no premature withdrawal option before completion of 7 years, tax benefits are applicable on returns that are earned from this scheme as per income tax slabs. All banks and post office banks are providing this financial product. This instrument is involved minimum risk and decent returns.
3. STOCK MARKET
Investing in the stock market is the best investment option for all. It offers high returns also with high-risk involvement. This means the investor can buy some shares of any company, which is the returns depend on such companies performance. For a long time view, invested funds can accumulate high returns like 15% to 20%. while investing in stocks, investors should consider their capacity of risk appetite. And they must have good knowledge of the stock market trends and the company’s financial performance and do fundamental analysis. It is best to go for fundamentally strong companies.
4. REAL ESTATE
Real estate investment is nothing but buying Assets like lands, houses, and physical properties when they are in the stage of the low price range with the potential to increase the value of the property. At present 2021 we can see how the demand for land is increasing day by day
In the Real estate sector, the location of the property is one of the decisive things to remember for investors. In the cities like Hyderabad, Bangalore, and Mumbai the infrastructure and real estate growth is developing at a very high level.
There will be two types of incomes from investing in property.
1. Capital appreciation
2. Rental incomes or by leasing the property.
5. UNIT LINKED INSURANCE PLAN
In India majority of people use Insurance Plans as an Investment Option. The life insurance policy provides life cover to a policyholder and financial security to his family/nominee. A Unit Linked Insurance (ULIP) Plan allows customers to invest in capital markets, for example, equity or debt instruments. While choosing the investment option, the policyholder should have insight into his risk tolerance.
This is the only financial plan that gives returns, Life cover as well as tax benefits.
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