Contents
- Overview
- 15 best investment options in India.
- PPF (best investment options)
- Investing in mutual funds (best investment options)
- Direct equity/share purchase (best investment options)
- Real Estate Investment (best investment options)
- Gold (best investment options)
- Post office savings scheme (best investment options)
- The company fixed deposits (best investment options)
- Initial Public Offerings (best investment options)
- Unit Linked Insurance Plans (best investment options)
- Investment in bonds (best investment options)
- Bank Fixed Deposits (best investment option)
- Senior citizen’s savings scheme (best investment option)
- RBI taxable bonds
- National Pension scheme
- Sukanya Samriddhi Yojana (best investment option)
- Recurring Deposits (best investment option)
Overview
We earn money to carry out some expenditures and to save/invest the rest. Investment with leftover money is the wisest decision to make. Let the money work for you. Also, ensure your financial security in case of any mishaps that might happen in the long run. Which is why the best investment options should be chosen as it is a perfect blend of investment and insurance.
So, without further ado, let’s consider some of the best investment options available in the market as of now.
15 best investment options in India.
| Investment schemes | Maximum amount | Minimum amount | Minimum Investment period |
|---|---|---|---|
| PPF | Rs.1,50,000 (annually) | Rs.500 (annually) | 15 years |
| Mutual funds (SIP) | No limit fixed | Rs.500 | This is applicable only in ELSS and close-ended schemes |
| Equity share | No limit fixed | No limit fixed | It is not applicable in this case |
| Real Estate investment | No limit fixed | No limit fixed | It is not applicable in this case |
| Gold (ETF) | No limit fixed | Variable | It is not applicable in this case |
| Post office monthly Income amount (single) | Rs.4,50,000 | Rs.1,500 | 5 years |
| Company fixed deposits | No limit fixed | Rs.2,000 | 12 months |
| Initial public offerings | No limit fixed | No limit | It is not applicable in this case |
| Unit-linked insurance plans | No limit fixed | Rs. 1,00,000 (for plans 45 years and below) | Less than or equal to 45 years |
| Bank Fixed deposits (FD) | No limit fixed | Rs.1,000 | 7 days |
| Senior Citizen’s savings scheme | Rs.15 lakhs | No limit fixed | 5 years |
| RBI taxable bonds | No limit fixed | Rs.100 | 7 years |
| National Pension System (NPS) | No limit fixed | No limit fixed | Fluctuating (until the age of 60) |
| Sukanya Samriddhi Yojana | Rs.1,50,000 (Yearly) | Rs.1,000 | 21 years |
| Recurring deposits | No limit fixed | No limit fixed | 6 months |
PPF (best investment options)
It is one of the safest and preferable options available on the list. In this case, the money is invested with a lock-in period of 15 years and you can extend the duration for the next 5 years. The investment is exempted from tax and safe from market fluctuations. Though, you can only withdraw some money at the end of 6th year or take a loan from the PPF balance amount, which does not ensure the liquidity of this investment.
| Financial Year | Interest rate |
|---|---|
| 2012-13 | 8.80% |
| 2013-14 | 8.70% |
| 2014-15 | 8.70% |
| 2015-16 | 8.70% |
| 2016-17 | 8.10% |
| 2017-18 | 7.60% |
| 2018-19 | 7.60% |
Investing in mutual funds (best investment options)
People are now coming to the realization that it is even better than the previous option. Due to the option of investing in stock markets using mutual funds schemes. The schemes are less risky and provide good returns over a period of time. The most attractive offer is the SIP (Systematic Investment Plan) which gives this type of investment an edge over others.
| Name | Type | Launching date | Nav on 13th June 2018 |
|---|---|---|---|
| Mirae asset emerging bluechip fund | Regular (Growth) | July 9, 2010 | 49.33 |
| Motilal Oswal Multicap 35 fund | Regular (Growth) | April 28, 2014 | 26.65 |
| HDFC Mid-cap Opportunities fund | Regular (Growth) | June 25, 2007 | 57.12 |
| ICICI Prudential technology fund | Growth | March 20, 2019 | 54.92 |
| SBI Banking and Financial Services fund | Growth | Feb 26, 2015 | 16.23 |
| L&T Infrastructure fund | Growth | Sep 27, 2007 | 16.87 |
| Franklin India Smaller Companies fund | Growth | Jan 1, 2006 | 59.34 |
| SBI bluechip fund | Regular (Growth) | Feb 14, 2006 | 38.59 |
| Franklin India Focussed equity fund | Growth | July 26, 2007 | 38.58 |
| Aditya Birla Sun life Frontline equity fund | Growth | August 20, 2002 | 218.33 |
An individual should know some analytics of the markets before investing in direct equity or shares. It is definitely the top 3 investment options available in the market. If the investment is made for a long period of time, then this is certain that the returns will be high.
Real Estate Investment (best investment options)
It is a worldwide phenomenon to invest in real estates and it comes under the best investment plan. It could be hospitality, retail, manufacturing, housing, commercial, etc. The risk is considerably low as the price of the real estate rises every 6 months.
Gold (best investment options)
Investing in gold has been done for ages that are gone and ages to come. The value of the investment increases rapidly and it can be beneficial to invest in it for a short period of time. Though, it is not advisable to invest all of the money in gold as this can prove risky in the long-term.
| Scheme name | 2 years | 3 years | 5 years |
|---|---|---|---|
| Religare Invesco Gold ETF | 0.9 | 2.4 | 5.6 |
| SBI- ETF gold | 1.6 | 2.5 | 5.7 |
| ICICI Pru gold ETF | 1.5 | 2.5 | 5.6 |
| Quantum gold fund | 1.5 | 2.4 | 5.6 |
| HDFC gold exchange-traded fund | 1.4 | 2.3 | 5.5 |
Post office savings scheme (best investment options)
This is a government-related scheme that provides regular income to the retired officials using the feature of Monthly Income Plan. Though the only issue is the low interest that is given to the investors.
Requirements to invest in this scheme
- This account can be opened for any one of 10 years or above (in the name of the minor)
- The maximum investment limit is Rs. 4.5 lakhs in case of single account and Rs. 9 lakhs in case of a joint account.
Benefits of this scheme
- Interest rate w.e.f 01-04-2018 is 7.60% payable monthly per annum
- A single account opened can be converted to a joint account.
The company fixed deposits (best investment options)
The company fixed deposits are better than a bank’s fixed deposits as it gives a higher return. Though it is advised to choose this investment very carefully as the money invested can’t be withdrawn before the maturity period. So, an investor who can bear some risk and are willing to invest for a long term can avail this opportunity to invest.
This scheme neither has any insurance benefits nor it is controlled by the Reserve Bank of India.
Initial Public Offerings (best investment options)
Being launched only once in a company’s lifetime, this is a very attractive investment opportunity to consider. The only problem is the lack of information links. If this is done by a reputed firm, then it is highly recommended as this is one of the least risky investment options available.
Unit Linked Insurance Plans (best investment options)
The money in this scheme is invested in equity and debt instruments. The rise and fall are considered by the Net Asset Value (NAV).
| Period | Absolute returns (%) | Annualized returns (%) | Performance ranks |
|---|---|---|---|
| 1 week | 1.3 | – | 32 |
| 1 month | 2.7 | – | 23 |
| 3 months | 3.2 | – | 14 |
| 6 months | 1.3 | – | 6 |
| 1 year | 2 | 2 | 7 |
| 2 years | 26.1 | 12.3 | 22 |
| 3 years | 37.6 | 11.2 | 25 |
| 5 years | 55.7 | 9.3 | 7 |
Investment in bonds (best investment options)
An individual who wants to avoid investing in equity market instruments and mutual funds could opt for bonds. It is advisable to opt for this as there are multiple good bond options available in the market as of now. This is relatively much safer to invest in and also promises good returns. Investing in the bond of a period of 10 years right now would yield returns of 7.70%.
Bank Fixed Deposits (best investment option)
Investing in bank’s fixed deposits ensure good interest with low risk involved. The interest could be 6.70% for a regular account holder to 7% for senior citizens. These returns can be obtained monthly, yearly or weekly as per the bank’s guidelines.
There are 2 options of investment i.e. non-cumulative and cumulative. In the case of non-cumulative, the interest is paid as per the underwritings and in the case of cumulative, the interest is reinvested in the FD and paid at the maturity.
Senior citizen’s savings scheme (best investment option)
This is a risk-free, tax saving investment plan that grants a whopping 8.6% returns per annum, making them highly attractive to consider investing in.
The maximum amount that could be invested is Rs. 15 lakhs.
The tenure of this scheme is 5 years but you can extend it by 3 years.
RBI taxable bonds
The tenure of this scheme is 7 years and the interest rate offered is 7.75% per annum. The issuing price is Rs. 100 and the person investing in it will get a certificate of holding in exchange for it. Here too, the interest could be charged as either cumulative or non-cumulative option.
National Pension scheme
It is a government initiative that aims to provide pension solutions to the people turning 60. 2 choices are given to people investing in it. One is auto, where the money is invested in an asset automatically and the other is manual, where the person decides the asset to invest the money. The interest accumulated is exempted from tax and the lumpsum withdrawal of it will be 40% tax-free. In addition to this, if one chooses to avail this interest after maturity, then it is taxable as regular income.
Sukanya Samriddhi Yojana (best investment option)
The main aim of the scheme is to promote the welfare of the girl child. The tenure of the scheme is 21 years and the interest is 8.6% per annum. The major benefit of this scheme is that it is exempted 3 times, i.e. at the time of depositing, interest earned and balance withdrawn all are exempted from tax.
Recurring Deposits (best investment option)
This type of account can be opened in a bank or a post office and the money is deposited at regular intervals of time. The time period of investment varies as the bank has the tenure of 5 years and the post office has the tenure of 12 months.
However, what you may not know is that selecting a mutual fund is much easier than you think. We, at WealthBucket, the online mutual fund investment portal, are committed to providing you with the best advice and services related to investments. Our services include EquityMutual fund, Debt mutual fund, Large Cap mutual fund or Multi-Cap mutual fund. Open your mutual fund account with us & make your money grow exponentially.
Give us a call at +91 9999379929. Or email at contact@wealthbucket.in
Do go through:
Best ELSS Funds to Invest in 2019
Understanding Balanced Mutual Funds: Benefits, Taxes & Comparison
