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Best investment options in India?

What are the best investment options in India? And how much returns can I expect?

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  • The traditional investment options in India were savings, gold, and property. Nevertheless, with time, we Indians have moved to multiple investment options.

    In general, there are two types of investment option available to anyone:

    • Physical assets like real estate, gold/jewelry, commodities, etc.
    • Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund, etc. or securities market-related instruments like shares, bonds, debentures, mutual funds, etc.

    Historically speaking, investing in equities and real estate has given the best return. However, investing in equities is more feasible compared to real estate as here you can start with an as little amount as Rs 500 per month.

    I hope it helps. Cheers!

  • edited June 2018

    The best way of investing your money can be decided once you consider the following factors :

    1) Your finance goals - You are planning to meet your short term/long term goals.
    2) Your risk horizon - You want to take no risk, low risk, moderate or high risk.
    3) Investment period - You want to invest for a shorter period or a longer period.
    4) Investment amount - How much amount you can practically afford to invest out of your
    entire savings ?

    According to me, investing in Mutual Funds is the best option.
    There are many advantages of investing in mutual funds. Some include:

    i) Built-in diversification - Mutual Funds invest in a wide range of securities which helps offset the impact of poor performers, while taking advantage of the earning potential of the rest.
    ii) Professional Management - Mutual Funds are run by qualified and professional fund managers who actively track their funds and re-balance the portfolios from time to time as new information comes in.
    iii) Fulfils various investment objectives - Mutual funds can be used to meet various financial goals. For example:
    * ELSS funds for tax planning
    * Diversified equity funds for long term wealth creation
    * Debt mutual funds for stable returns and preservation of capital

    To read more, refer Advantages of investing in Mutual Funds
    You can invest in either of two:

    i) ELSS or Equity Linked Savings Scheme- Locking period is 3 years. Indian Income Tax Section 80C allows upto ₹ 1,50,000 tax exempt investments to be made every year. For more details, refer ELSS

    ii) Equity or debt funds -Equity funds have historically provided the highest rate of return but are also more volatile as they are market dependent. Although, equity funds can generate outstanding returns in a short span of time as well, but investors should ideally have a long term time frame to counter volatility. Debt mutual funds are are suitable for investors whose main objective is preservation of capital with stable return. In order to enjoy good returns you have to invest your money in equity market for a longer period of time and SIP is a good way to do it.For details on SIP you can refer What is SIP? What are the benefits of investing through SIP?

    Diversify your funds to get good returns based on your risk appetite and period of investment and add a variety to your financial portfolio.

    To choose best funds you can refer Top Rated Mutual Funds

    I hope it helps!!

  • I have found this post quite knowledgeable. I agree that equity investments are quite easy for almost everyone as one can invest as low as 500 bucks. I am also looking to do investments but due to limited knowledge, don’t want to hurry. Was looking into Capital gain Bonds currently.

  • The best option in India is SIP investment plan. It's hassle-free and no paperwork. You can browse Kotak Mutual Fund site and drive the complete information on Equity mutual funds. Your returns will depend on your investment. You start with a minimum amount of Rs 500/. And add-on.

  • The best investment options are as follows:

    Equity market: As an NRI, you can invest in direct shares or ETFs (exchange-traded funds) both on repatriation and non-repatriation basis. To invest in the equity market, you need to open a demat and a trading account with a registered broker by getting a permission letter from the RBI (Reserve Bank of India) under PIS (Portfolio Investment Scheme). This PIS letter allows you to invest in the secondary markets.

    Fixed and term deposits: A bank fixed deposit is where you invest for a fixed lock-in period and get returns. Term deposits, on the other hand, also come with a lock-in period and are offered by various banks, NBFCs (non-banking finance companies) and even some private companies. If the investments are made via NRE account they are tax-free, while the ones made by NRO account are subjected to TDS (tax-deduction at source).

    Mutual funds: There are domestic mutual funds that invest in different equity and debt securities, which are available for investments for NRIs. These offer good returns and do not require monitoring as in the case of investment in direct equities.

    You can consult best investment broker for better consultation and other investment options.

  • edited October 2018

    Nice answer @Akansha

    @Akansha said:
    The best way of investing your money can be decided once you consider the following factors :

    1) Your finance goals - You are planning to meet your short term/long term goals.
    2) Your risk horizon - You want to take no risk, low risk, moderate or high risk.
    3) Investment period - You want to invest for a shorter period or a longer period.
    4) Investment amount - How much amount you can practically afford to invest out of your
    entire savings ?

  • edited October 2018

    There are a variety of investment plans available, such as Public Provident Funds, mutual funds, stocks, bonds, real estate, equity shares, gold, fixed deposits, recurring deposits, etc. Some of the more popular ones among the public include life insurance plans, PPF, and more recently, mutual funds.

    Here is a list of the best investment options at present:

    • Public Provident Fund
      The PPF is a tax-free, extremely safe option for long-term investment. Under public provident fund plans, money can be stored in a bank/post-office account for a minimum duration of 15 years. Compound interest is calculated on this amount and added to the principal. The duration of investment can be extended for another 5 years beyond the primary 15 years of investment. The current rate of interest (FY 2018-19) for the PPF is 7.60%.

    • Mutual Funds
      Mutual funds investment is one of the best options for a balanced risk versus return investment. Safer than stock market investment but still dynamic enough to earn a strong rate of interest through the years, mutual funds are one of the best investment plans among the current generation. Systematic investment, diversified portfolio, and efficient portfolio management are three primary principles of mutual funds investment.

    • Equity Shares
      Equity shares or direct stock market investment is a somewhat riskier option, involving strong knowledge of the market and a higher risk appetite

    • Real Estate
      Real estate is a tried and tested method of investment, currently growing at a strong rate in India. There are two advantages of real estate investment – you can invest in different types of properties, such as land, commercial, residential, retail, etc., and the risk of investment is low.

    • Gold ETF
      Gold ETFs are by far the most unambiguous avenues of investment. Indians have a special affinity towards gold investments and since the value of gold remains nearly consistent, apart from a few fluctuations, it is a safe option for investment.

    • Company Fixed Deposits
      Company FDs have a higher rate of interest as compared to bank FDs. However, they are not under the control of the Reserve Bank of India, nor under any life insurance scheme. Hence, the risk involved is greater as well.

    • United Linked Insurance Plans
      ULIPs invest in debt and equity markets. Similar to mutual fund investments, the best investment plans in ULIPs offer portfolio diversification between stocks/bonds and life insurance cover.

    • RBI Taxable Bonds
      RBI bonds start at INR 100 and have an interest rate of 7.75% per annum. The minimum duration of investment is 7 years. These bonds require a Demat account and are credited to the BLA (Bond Ledger Account) of the investor.

  • edited October 2018

    @ssinha said:
    What are the best investment options in India? And how much returns can I expect?

    If You are new and wants to save money for your future goals then try mutual funds for long terms. Even if you don't have much knowledge try because there are many apps and website they will assist you in the same.
    Like Zerodha, ET Money, Fisdom and many others.
    they will show the best performing Mutual funds in the market and show there past performance to check for all the returns and all.
    Also try the safest options likes Liquid Funds, Bank Deposits.

  • There are many investment plans available in India. Some of private bank or NBFC banks also working as investment bank in India. Mutual funds, stocks, investment in property and so on. JM Financial group provides all the facilities related to finance . Hope it useful....

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