Without facing any loss and getting a sky-high return as fast as possible on the principal money invested is the prime concern of all the investors.
Because of this reason many of the investors are on the lookout for the top investment plans where they can double their money in few months or years without any little risk.
It is a known fact that no such investment exists that provides low risk and high return. Risk and return are related sidewise.
One should match their own risk profile with the risks associated with the product before investing in an investment avenue. Some investments also exist that have high risks but has a high potential to generate high inflation adjusted returns.
Financial and non-financial assets are the two categories in which investment falls in. Two classification of financial assets are market-linked products and fixed income products. Most of Indians invest via mode of non-financial assets like gold and real estate.
For saving for their financial goals Indians mostly look at these top 10 investment avenues.
As there is no guarantee of returns and violation of asset class that’s why investing in stocks is not everyone’s cup of tea. Pick up of right stock, timing of entry and exit is also not easy. Delivery of higher than inflation adjusted returns compared to all other asset classes is the prime benefit of equity.
Until one chooses for stop-loss method, the risk of losing the capital is high. One places an advance order for selling of the stock at a specific price in stop-loss method. Around 13%, 8%, 12.5% are the returns for 1, 3, 5 years. A demat account is vital for investing in direct equities.
2.Equity Mutual Funds
These basically invest in equity stocks. An equity mutual fund should invest 65 percent of its assets in equities and equity related instruments as per the rules of the Securities and Exchange Board of India (Sebi) Mutual funds regulations.
The ability of the manager to generate return is the key factor that governs returns in an actively traded fund. The underlying index are tracked by the index funds and exchange-traded funds. Market capitalisation or the sectors of the investments are the way to categorise the equity schemes. Categorisation is also on the basis whether investment is domestic or international. 15%, 15%, and 20% returns are for the 1, 3, and 5 years of investment.
3.Debt Mutual Funds
For steady returns debt funds are chosen by the investors. Being less volatile provides less risk compared to equity funds. Corporate bonds, government securities, treasury bills, commercial paper and other money market instruments are prime fields of investment for Debt mutual funds. 6.5%, 8%, and 7.5% are the market returns for 1, 3, 5 years in this investment.
4.National Pension System (NPS)
Managed by the Pension Fund Regulatory and Development Authority (PFRDA), national pension system is a long-term investment method focussed on the retirement. From 6000 the minimum contribution to remain active with account is reduced to 1000. This is made as a mixture of equity, fixed deposits, corporate bonds, liquid funds and government funds. Money is invested in equities through NPS according to one’s wish to handle the risk. 9.5%, 8.5% and 11% is current market returns for 1, 3, 5 years of investment.
5.Public Provident Fund (PPF)
Lot of people are attracted towards this. Due to long tenure of 15 years, the impact of PPF in compounding tax-free interest is huge. Since there is a guarantee of return of interest earned along with the principal invested this is a safe way of investment.
6.Bank Fixed Deposit (FD)
In India FD is a safe way of investing. Each person who deposits in bank is insured up to a maximum of 1 lakh for both principal and interest amount according to Deposit insurance and credit guarantee corporation (DICGC) rules. Options are too available in this as monthly, quarterly, half yearly and yearly. Taxed as per one’s income slab, the interest rate earned is added to one’s income.
7.Senior Citizen’s Saving Scheme (SCSS)
Probably it is the first choice of every retired person to invest in this. As per the name, this is only available for the senior citizens and early retirees. Any one above 60 can avail this from a post office or a bank. It has a five year of tenure along with an extension of three years after maturity. Current interest rate for SCSS is 8.3%.
8.RBI Taxable Bonds
8% savings bonds of 2003 are no replaced by government with a 7.75% saving bonds. These bonds have a tenure of 7 years. Along with a certificate of holding this bond, an investor can get this bond in demat form and can get this credited to the Bond Ledger Account (BLA).
As the house one lives in is for self-consumption that’s why it is not considered as an investment. If you buy another house that will be your investment.
Location is the prime factor for deciding the value of the property along with the rent that it can earn. Capital appreciation and rentals are two ways by which investments in real estate deliver returns. Real estate is highly illiquid unlike other assets.
Safety and high cost are them prime concern while making jewellery from gold. 6-14 percent of price is tagged as the making charges for the jewellery. Gold ETFs are an alternate way for owning paper gold. Gold as an underlying asset helps in investments on stock exchange. Investment in Sovereign Gold Bonds are other option for owning paper gold.
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