6 Best Investment Option In India | Top Investment Option in 2020 | By Invest Therapy
While earning wealth is important, it is also important to grow, save, and maintain it. One of the most suitable means to achieves these goals is by investing in the right Investment instrument according to your financial needs. According to the Standard Chartered Emerging Affluent Study 2018, more than two-thirds of the Indians are making most of the investment product and achieving their financial goals.
If you like to Know which investing product are fit for your financial goal and portfolio, here are some of the most popular Investment products in India that you should consider:
Equity Investment:
Investing in equity means investing in the Value of the Company in the stock market. These shares are traded by investors in Stock Exchanges through a Brokerage firm.
Investing directly in equity takes its own share of research. But it is a common, well rewarding option for investors who focus on wealth creation. Since equity investment is market-linked, they contain a certain level of risk since market movement fluctuates overtime. However, the high return with the right Investment makes equity Investment a profitable investment option for investors with a slightly higher risk.
Cryptocurrency Investment:
Cryptocurrency is a digital currency that people use for Investment and for trading. You can exchange real Currency like Rupees or Dollar to purchase coins or Tokens of a given CryptoCurrency. There is more than 1600+ CryptoCurrency available for Investment. Bitcoin is the most famous Currency, but Ether, Bitcoin Cash, Ripple, and Litecoin are few other. The level of risk is high in CryptoCurrency Investment is high but if you invest with the right strategy then it will help you to grow your wealth much faster.
Mutual Fund Investment:
One of the most popular investment options in India is the Mutual Fund. They are Investment funds that pool money from various investors to purchase securities, such as stock and debt. Mutual fund investors have the advantage of collectively managed by a professional fund manager to earn a higher possible return. Mutual Fund are a common Investment option since they offer a variety and flexibility to the investors. There is more than a thousand mutual Fund scheme available to choose according to your risk factor and duration of your Investment. They also come with a variety of debt, equity, hybrid, a mixed and liquid scheme based on your Investment portfolio.
National Pension Scheme (NPS):
The National Pension Scheme or NPS is a voluntary, long-term Retirement Investment plan backed by the government of India. Among with various Investment option available in the market, NPS fall under the profitable category of EEE. That means the entire retirement amount in your NPS account can escape tax at maturity, and withdrawal of your entire pension amount will be tax-free. NPS act as an effective tax-saving instrument and a portion of your contribution is Invested in equity which offers decent return as well. All in all, it is an ideal investment option for those investors who wants lower risk and looking to accumulate enough savings and Receive regular pension after retirement, particularly in the private sector.
Public Provident Fund (PPF):
The Public Provident Fund or PPF is a popular Savings cum Tax-free instrument in India which is introduced in 1968 and Backed by the Indian government. It offers an attractive rate of interest and taxes are not Required to paid on the interest that is generated from the interest rate. PPF is an Ideal Investment for those Investors who looking for risk-free and assured returns like NPS. The PPF also enjoys EEE tax status. It offers vast flexibility to Investors Since you can start Investment for as little as 500₹ and after 15 years extend tenure in a block of 5 years. PPF also offers a funding Option such as partial withdrawal and loan against your PPF account.
Must Read:
What is PPF | How to Invest In PPF
Fixed Deposit (FD):
A fixed deposit is a financial instrument provided by Bank or NBFCs (Non-Bank Financial Company) and provides Investors a higher rate of interest than a regular Savings account, until the maturity date. It is a time tested and classic Investment option that is recommended for generations. Fixed Deposit has been chosen by Indian families due to their convenience, high interest, and guaranteed returns. They also offer flexibility since tenure for FD Investment can range from as short as 7 days to as long as 10 years.
There is a variety of Investments available in the market. For example, investors who looking for stable long-term returns can invest in a fixed deposit of their choice. On the other hand, investors who can take high risk then they can develop their trading strategy and invest directly in the equity market. The key to determining your financial goal as well as other specific such as your risk desire, duration of Investment, and purpose of Investment. Once these are settled, choosing for right Investment option became easier and more effective for your Investment strategy.