In order to achieve maximum returns and gains, an investor must know where to invest money. Having a proper understanding of the best investment options will help the investors to make informed decisions about investments. In order to ensure just that, every insurance company offers investors with multiple options of investment like ULIPs and so forth to match his or her family requirement.
On the other hand, there is a possibility that due to a plethora of available options the investors might either get confused or lost in the process. While a majority of investment plans are good for wealth generation, most are based on the risk appetite and fund allocation of the investor. In order to avoid this from happening, it is advisable to take professional help. So if you’re wondering about the numerous types of investment options, then keep reading to find out more:
List of a few best investment options available in India:
- Unit Linked Insurance Plan
A Unit Linked Insurance Plan (ULIP) is a plan that offers the dual benefits of not only investment but also insurance under one single roof. When you invest in a ULIP Policy, you not only avail the safety benefits for your family but also the growth benefits for your funds. Moreover, an investor is eligible to receive higher returns and lower cost on the investment.
Investment in gold is perfect for all the small investors as well as the new investors because of its transparent nature. Once you have invested in gold you don’t have to keep worrying about the risk of either impurities or adulterations. Since an investment in gold can be in a digital format, an investor can easily track down the details of his investment. Besides, it also provides a larger scope of liquidity to its investors.
- Real Estate
When it comes to buying and reselling land and building properties, real estate is undoubtedly considered as the safest bet to do so. Investment in real estate is considered as the greatest option for investment as it helps the investor to gain value over the due course. Before you decide to invest in a real estate, consider all the associated charges and the way you further plan to resell it. The good news about investing in a real estate is that an investor can utilize it for the generation of wealth if he has enough accumulation of funds.
- RBI Taxable Bonds
The taxable bonds provided by RBI prove its longevity by offering a tenure for the period of 7 years. Over the due course, the Government of India has replaced the 8% of the taxable bonds to 7.75%. When you make an investment in RBI Taxable Bonds, you are provided in a demat format which is further, credited in Bond Ledger Account (BLA). Post that, an investor is eligible to receive a certificate of holding as a proof of his investment made in that plan.
- Mutual Funds
If you’re looking forward to investing in equity markets, then investment in mutual funds is an ideal choice for you. Investment in mutual funds simply means getting to invest in equity, bonds, share, and other market instruments. Under a mutual fund, an investor can purchase the units and further can base these purchased units on Net Asset Value (NAV). These mutual funds are also another way of generating high income as well as returns.
- Stock Markets
In order to take advantages of the tax savings benefits, invest in stock markets. Stock markets make provision for small, mid, and large-cap stocks by creating a balanced portfolio for the investors who find it difficult to invest in a large sum. Additionally, stock markets also offer flexibility based on the risk appetite of an investor.
- Public Provident Fund
Are you a risk-averse investor? If yes, then make it a point to invest in a Public Provident Fund (PPF). PPFs are considered as one of the best investment options for its long term benefits of safety and security. By investing in a PPF, you can lock your funds in for a period of 15 years which in turn leads to gains from the compound interest. Keeping your need for long term investment in mind, PPFs also allow you to extend your policy for the next 5 years.
- Fixed Deposit
The rigorous savings habits of Indians have given birth to fixed deposits in India. With the help of a fixed deposit, an investor has insured with a minimum sum of Rs. 1 Lakhs. Further, you are liable to receive returns on annually, monthly or quarterly basis. Therefore, invest in a fixed deposit system as it is not only the safest but also the most commonly used modes of investments.
Now that you know these different types of investment options, which one do you plan to invest in? Whichever you decide to go with, be carefree and opt for it as it will reap you with maximum benefits on your next big investment.