● Why Investments?

In today’s world, investments are essential because working hard for money to earn from a job is not enough for you to lead a comfortable lifestyle or to fulfil your dreams and goals. For that, you need your money to work hard for you as well, and that could be only possible for you by investing your money smartly to get good returns out of it.

It may seem a little confusing to choose the right plan for your investments, but, it should depend on the individual’s risk profile, time horizon and other factors. Some investment platforms offer excellent options for you to start your journey of investments towards wealth accumulation and accomplishing your financial goals. Many investors want to make their investments in such a way that the returns on their investments are high and quick as possible without the risk of losing principal money. Even some believe that their money will get doubled in a few months or years with little or no risk.

● Top 10 Best Investment Options:

1. Equities

Investing in stocks is considered to be one of the top investments that an individual can make. It might not be everyone’s cup of tea as it’s a volatile asset class, and there is no guarantee of returns if you don’t have any prior knowledge about it. But, if you pick the right stock, and the correct entry strategy nobody can stop you from taking your profits and remembering exit is also not that natural timing plays a vital role to book your profits. You can also diversify across different sectors to reduce the risk to a certain extent. To invest in equity, you should have a Demat account to buy or sell shares in which you want to invest.

2. Equity Mutual Funds

Mutual Funds are quite popular among working professionals and making investments in it is pretty straight forward. Through mutual funds investment, you can access the best of all and generate an excellent income. As per the rules of SEBI (Securities and Exchange Board of India), Mutual Fund Regulations, an equity mutual fund scheme must invest at least 65% of its assets in equity and equity-related instruments. An equity fund can be actively managed or passively managed.

3. Debt Mutual Fund

Investors who want steady returns can make their investments in Debt Mutual Fund Schemes as they are less volatile and considered to be less risky compared to equity funds. Debt mutual funds primarily invest in fixed-interest generating securities like corporate bonds, government securities, treasury bills, commercial paper and other money market instruments. However, these mutual funds are not risk-free. They carry risks such as interest rate risk and credit risk.

4. National Pension System (NPS)

It is a long term retirement-focused investment product managed by the Pension Fund Regulatory and Development Authority (PFRDA). NPS is a mix of equity, corporate bonds, fixed deposits, liquid funds and government funds, among others.

5. Public Provident Fund (PPF)

It is one of the investments that people turn into as PPFs has a long term tenure of 15 years and therefore, the impact of compounding of tax-free interest is enormous, especially in the later years. The interest earned and the principal invested is backed by a sovereign guarantee, which makes it a safe investment.

6. Bank Deposits (FD)

Bank Fixed Deposits is considered a comparatively, safer choice for investing than equity and mutual funds. Under the deposit insurance and credit guarantee corporation (DICGC) rules, each depositor in a bank is insured up to a maximum of Rs 5 lakh with effect from February 4, 2020, for both principal and interest amount which was Rs 1 lakh earlier. One may opt for monthly, quarterly, half-yearly, yearly interest option in them.

7. Senior Citizens’ Saving Scheme (SCSS)

Senior Citizens’ Saving Scheme (SCSS) is the first choice of most retirees and a must-have in the portfolios of investors. It can be availed from a post office or a bank by anyone above 60. It has a five-year tenure and can be extended further by three years once the scheme matures. The interest rate on SCSS is payable quarterly and is fully taxable, and the upper limit of investment is Rs 15 lakh.

8. Pradhan MantriVayaVandanaYojana (PMVVY)

The scheme offers pension income payable monthly, quarterly, half-yearly and yearly as opted by an individual aged 60 years and above to provide them with an assured return of 7.4 per cent per annum. The minimum amount of pension is 1,000 per month and a maximum of Rs 9,250 per month. A maximum amount of Rs 15 lakh can be invested, and the tenure of the scheme is of 10 years and is available till March 31, 2023.

9. Real Estate

Many investors believe that their house is the most significant investment of their lives. If you do not intend to live in it, the second property you buy can be your investment. Investment in real estate delivers returns in two ways which are in the form of capital appreciation and rentals. The other risk associated with real estate investment comes after the regulatory approval, which is addressed to the real estate regulator.

10. Gold

Gold is considered to be a perfect hedge against inflation and economic crisis and believed as the safest option of investment that families prefer for their future events. Gold is traded as a commodity, and all the gold that has ever been mined in the world is still available. It is not confirmed how much gold is yet present on Earth and thus, makes it a scarce resource. The gold that is mined every year is not very high, which results in higher prices as the demand for gold increases. Hence, investments in gold should be made in the portfolios of investors.