When it comes to investing their money, people look for options that provide maximum returns with no risks. Although there are certain factors of risks associated with every investment. But with the right decision investors can mitigate the potential risks. The first step towards the same is to figure out the best investment options. Below are the top places to invest your money in India.
National Pension System
It is a long-term retirement-centric investment option administered by the Pension Fund Regulatory and Development Authority (PFRDA). For tier 1 account, the minimum annual contribution to remain active stands at Rs. 1000, which was earlier Rs. 6000. This investment product is a combination of fixed deposits, equity, government funds, corporate bonds, liquid funds, and other investment options. Depending on the risk you are willing to take, you can invest in equities via NPS.
Mutual Funds
Mutual Funds are among the most popular types of investment options in India.
Equity mutual funds are especially well-reckoned among the investors due to their high earning potentials. Some well-performing funds have accumulated CAGR of up to 20% in 10 years.
While the rate of return is high, so are the risk factors. There are various portfolios and investment options available in mutual funds. Therefore, it is recommended to get assistance from a financial expert before making a decision.
Moreover, start by investing a small amount, once you become more familiar with the market, gradually increase your investment.
Direct Equity
The stock market is extremely volatile, and there are no guaranteed returns; therefore, it might not be suitable for people who are looking for low-risk investment options. In comparison to many other assets, it's seen that Direct equities are capable of offering more returns than inflation-adjusted returns.
You can choose to leverage the stop-loss method to mitigate the risk of losing your capital. In this method, the investor implements an advance order to sell his or her stock at a particular price. To further, reduce the risk, try to invest in diverse sectors.
Bank Fixed Deposit
A fixed deposit is considered one of the most secure investment options in the country. As of February 4th, 2020, the deposit insurance and credit guarantee corporate dictates that each bank depositor can be insured up to Rs. 5 lakh, including the principal as well as interest amount. An individual can choose to obtain a yearly, quarterly, or monthly interest option.
Public Provident Fund
It is the perfect investment option for investors who want to steer clear from risks. It is easy to start a scheme and can be opened in a bank or post bank. The tenure of this investment option is 15 years that can further be extended to five years. Starting this investment at an early stage means you will have a large sum by the end of the plan. Additionally, you can also acquire a loan on your PPF. A great thing about this product is that the interest you earn overtime is not taxable.
There you have it, if you are looking for investment options in India, then above are your top picks.
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