Best Investment Options in India for Middle and High Class

Every individual wish to invest their surplus funds for any returns on the same. Saving and investing surplus funds into lucrative investment options allow individuals to earn returns which can be utilized in times of need. Moreover, every investor wishes to reduce their chances of risk and on better returns on investment. 

 

No one can guarantee that a particular investment vehicle will generate sufficient returns without any risk. But one can identify various investment options to reduce their overall chances of loss and thereby maximize the probability of earning maximum returns. 


Certain investment options are listed below which one can select based upon their personal preferences:



 

Mutual funds:

Mutual funds have become an important and popular investment vehicle where investors are parking their points for better returns. Investors investing in mutual funds or indirectly parking their surplus amounts in debt stocks, commodities, and equity without any need for analyzing the underlying companies and their performance. It acts as a diversified investment vehicle where investors can invest their money in different avenues through a single dedicated pool of funds known as a mutual fund. There are dedicated institutions like banks that allow investors to invest in mutual funds which results in diversification of investment and thereby reducing the risk and cost of investing. 

 

Exchange-traded funds are similar to mutual funds where investors can park their surplus amounts in different investment solutions like commodities, currencies, and even company stocks. The only difference is that the ETFs are actively traded on the stock market through which one can take decisions related to investment. The performance of an ETF is based on their underlying index or performance of a company where the amount is invested.

 

There are even dedicated applications and funds created by institutions where one can invest their money for earning better returns. For example, gold ETFs and equity or debt mutual funds where one can invest easily. SIP or systematic investment plan can allow investors to invest funds with a minimal amount of ₹500. Currently, overall mutual funds outlay stood at 3.2 crores in 2019 which is bound to increase even further.

 


Fixed deposits:

Fixed deposits serve as the best investment vehicle for investors who are looking for the least risk on their investment. Both public and private sector banks offer fixed deposits where one can invest in for earning stable returns on their investment for a particular period ranging from 5 to 10 years. The best part about investing in fixed posit is that the rate of return offered remains stable for the period of investment with limited or no risk. However, due to the current situation of Coronavirus, the interest rates are decreasing at an alarming rate which is investing in fixed deposits less lucrative than other areas.

 


Physical commodities like gold and silver:



Risk-averse investors generally opt for commodities available in a physical format like gold and silver to reduce their level of risk. Gold and silver are considered to be the best forms of investment due to their lucrative returns over many years. On average investment in gold in a particular year provides a return ranging from 12 to 22% which is higher than any other investment vehicle. According to leading research by investors and institutes, Gold and silver prices are bound to increase even further thereby making investors rich.

 


Government bonds:

Government and its various institutions issue bonds from time to time when they need money. Government bonds are sold as one of the best investment vehicles as the rate of return stays fixed and are even higher than any other investment areas like fixed deposits. However, government bonds with a floating rate of interest can be changed according to the rate of inflation and performance of the economy which can reduce the returns over investment. However many investors look for government bonds due to lower risk as they are issued by the government and are secure in terms of principle payment and stable returns.

 


Public Provident fund:

Public Provident fund or PPF are dedicated investment vehicles where investors park their funds for stable returns. These funds are created by government post offices where one can invest their money for a period of a minimum of 15 years. Moreover, the best part about investing in PPF is that the returns in the form of interest is tax-free and can be used for deduction in tax returns. 

 


In Conclusion:

 

Normally every investor thinks of earning sufficient returns over their investment at low risk by diversifying their areas of investment. There are various areas and vehicles where one can invest their money like direct equity, debt instruments, and physical commodities like real estate. However, one must possess knowledge and skill to identify the best investment vehicles and diversify their investment areas to use their chances of loss on their investment.

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