Experts consider it important to have shares in the portfolio of an investor, as it is included in some investment options that are capable of giving better returns than inflation in the long term.
Every person has different financial goals. The investment options and the ability to invest in it to achieve the financial goal may also be different. To make you easy to take investment decisions, we are telling you 12 popular investment options.
Public Provident Fund (PPF)
It is a government guaranteed safe investment scheme. It is a product with a fixed return, which falls in the EEE (Exam, Exec, Exec) category in terms of tax. When you invest in PPF, the amount is tax-deductible under Section 80C of the Income Tax Act. In this, you also get tax rebate on the interest earned and the amount received on maturity.
PPF account can be opened in any post office or bank. This investment option has a lock-in of 15 years. This time starts after the account opening financial year.
Fixed deposit
It is a popular product for permanent income. You can invest in bank FD or company FD. Investment amount, duration and interest rates may vary from bank to company. However, there is no maximum investment limit. Generally, the company FD gets more interest than the bank. In this, however, the risk is also higher than investing in a bank FD.
Corporate shares
Investing in stocks is a risky product. You should do a thorough investigation of the stock before investing. Here you can invest in two ways – one through the IPO at the time of listing of the new company in the stock market or the other through the purchase of shares in the secondary market through the stock market.
There is no guarantee of return on investment in shares. There is a lot of fluctuation in the price of shares and due to this your capital can also be lost. Experts say that investment in stocks should be done according to the perspective of at least five years.
Experts consider it important to have shares in the portfolio of an investor, as it is included in some investment options that are capable of giving better returns than inflation in the long term.
Mutual fund
Those who do not have expertise in stock selection and testing can turn to mutual funds to invest in stocks. Mutual funds invest not only in stocks but also in other investment options like bonds and gold.
You should choose mutual funds according to your risk taking ability, duration of investment and financial goals. MFs can have equity, debt or balance schemes. You can invest in Mutual Funds through a one-time investment or SIP.
Recurring deposit
If you want to invest at regular intervals and are looking for a safe investment option, then you can invest in a recurring deposit. It can be opened in any bank or post office. In the post office, you can open a five-year recurring deposit, while in the bank you can open a recurring deposit of up to 12–120 months.
Post office savings scheme
Apart from PPF and RD, there are many savings schemes available in the post office. This includes time deposit, senior citizen saving scheme, monthly income scheme, Kisan Vikas Patra and National Saving Certificate (NSC) etc. Investments in these are considered safe due to the central government’s guarantee.
Ulip
If you want the convenience of both investment and insurance in a single plan, then ULIP is a better product for you. There are some charges in this, due to which the amount you get on maturity can be affected. According to the current rules, the amount received on its maturity is tax free. There is a lock-in of five years and only after that you can redeem the investment.
Sukanya Samriddhi Yojana
Sukanya Samriddhi Yojana (SSY) is a good long-term savings plan. The objective of this scheme is to provide financial help at the time of daughter’s education and marriage. Accounts under SSY can only be opened by girls under 10 years of age in a bank or post office. To open an account in SSY, the initial deposit amount should be at least Rs 1000. In this, money cannot be withdrawn till the age of 21 years. In SSY, you can deposit a maximum of 1.5 lakh rupees in a year.
National Pension System
To save according to retirement, opening an account in the National Pension System (NPS) is a good option. There is a separate tax rebate on the investment in it. The amount invested in NPS is invested in both equity and debt options. It is necessary to invest 1000 rupees in any one year. There is no limit to the maximum investment in NPS.
Investment in gold
Gold is not guaranteed return compared to FD. Investment in gold, however, is done for security and stability in uncertain times. If you do not want to invest in physical gold, then you can invest in paper gold. One can invest in options like Gold ETF, Gold Mutual Fund, Sovereign Gold Bonds. Investment in Sovereign Gold Bonds matures after eight years.
Investment in bonds
Investors have many options to invest in bonds. One can invest in options like Zero Coupon Bond, Tax Free Bond, Taxable Bond, PSU Bond and RBI Bond. However, before investing, you should invest only after knowing about the minimum amount of investment, duration, tax liability and liquidity condition.
Real estate
The oldest and preferred option for investing in Indian families includes real estate. You can earn income from rent or later by selling property and earn returns from it. The house is priced according to the area, size and texture.
Many people have earned considerable returns by investing in real estate. However, before investing, you should invest by looking at the trends and connectivity of the property in the area.
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