Best Investment Options in India for Long & Short Term | Safe Investments with high returns in India for Salaried Person & Middle Class
People invest in or park their surplus to quench their financial needs and security. As per the orthodox or traditional thinking, if you need more money, you need to work more right?
Think twice that Is a bundle of money is pleasurable? if you have no time to enjoy it.
You can gain returns and generate wealth as long as you stay invested.
Always remember that
“When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.”
Life insurance is regarded as one of the best investment avenues. As a key advantage, it proffers financial safety to the policyholders.
Are you looking for investment plans or curious to learn about which is the best investment option in India?
An investment plan is an ideal avenue for investors who wish to generate wealth and accomplish goals of saving taxes.
Yes, our today’s post is centered on “ Best Investment options in India”
Stay tuned with the post to learn more!
Best Investment Options in India
Here I have listed the top 15 best investment options for you.
| Investment Options | Maximum Amount | Minimum Amount | Minimum Investment Period |
| Mutual Fund (SIP) Best Mutual Fund App |
No Limit | As low as 500 | Only applicable in case of close-ended and ELSS schemes |
| Equity Shares | No Limit | No Limit | Not Applicable in this case. |
| Public Provident Fund | 1,50,000/ – (One FY) | 500/- (One FY) | 15 Years |
| Bank fixed deposit (FD) | No Limit | Rs. 1000 | 7 days |
| Real Estate Investment | No Limit | No Limit | Not Applicable in this case. |
| Gold ETF | No Limit | Variable | Not Applicable in this case. |
| Top 10 PMS in India 2024 | No Limit | Variable | Not Applicable in this case. |
| Post Office Fixed Deposit: Post office monthly income account schemes (single) | 4,50,000/- | 1,500/- | 5 Years |
| Company Fixed Deposits | No Limit | As low as 2000/- | 12 Months |
| Initial Public Offerings Upcoming IPO 2024 |
No Limit | No Limit | Not Applicable in this case. |
| Unit Linked Insurance Plans | No Limit | 1,00,000/- for plans 45 years and below | 45 Years or below |
| Senior Citizens’ Saving Scheme (SCSS) | Rs 15 lakhs | No limit | 5 years |
| RBI Taxable Bonds | No Limit | Rs. 100 | 7 years |
| National Pension System (NPS) | No Limit | No limit | Variable; until the age of 60 |
| Sukanya Samriddhi Yojana | Rs.1 lakh 50 thousand (per financial year) | Rs. 1000 | 21 years |
| Recurring deposits | No Limit | No limit | 6 months |
Let’s check out
Invest in Mutual Funds
If you are someone who wants to invest in equity and bonds with a balance of risk and return generally opt to invest in mutual funds.
Nowadays, investing the stock market through mutual funds is in trend.
One of the lucrative investment avenues is an investment in the mutual fund for a long time through a systematic investment plan SIP.
The investment plan will provide a much better return compared to any other option.
Direct Equity or Share Purchase
If you have flair for share trading and stocks then you can opt direct equity or share purchases. The option is considered as the best investment option for a long period of time.
If the investment is done for a long duration it is sure that there will be a higher return in the stock market.
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| Best Online Trading Platforms in India |
Public Provident Fund
Public Provident Fund- It is regarded as one of the secured and safest long term investment avenues in India.it is totally tax exempted.
Under this scheme, your money is locked for about 15 years and you can earn compound interest from this account.
You can also extend the time span for five years. The only limitation of public provident fund is you are not allowed to withdraw your money at the end of the 6th year. in case you need it, you can avail a loan against the balance of the public provident fund.
PPF Interest Rate 2012 to 2025
| Financial Year | Interest Rate |
| 2012-2013 | 8.80% |
| 2013-2014 | 8.70% |
| 2014-2015 | 8.70% |
| 2015-2016 | 8.70% |
| 2016-2017 | 8.10% |
| 2017-2018 | 7.60% |
| 2018-2019 | 8.00% |
| 2019-2020 | 7.90% |
| 2020-2021 | 7.10% |
| 2021-2022 | 7.10% |
| 2022-2023 | 7.10% |
| 2023-2024 | 7.10% |
| 2024-2025 | 7.10% |
Real Estate Investment
You must be well known regarding that real estate is one of the fastest-growing sectors in India.it is holding huge prospects in the major sectors like housing, commercial, hospitality, manufacturing, retail and more.
Purchasing a flat or plot is the best investment option available in India.
The risk is low because the rate of a property increases from time to time.
Investment in Gold
Gold is considered, one of the traditional, evergreen and profitable investment options for ages, as the value of the gold increases fastly.
If you are seeking gold investment avenues then you can opt for any gold investment format like the gold deposit scheme, gold ETF, Gold bar, gold mutual fund etc. Gold investment is profitable for a short period of time.
Post Office Saving Schemes
This is among the best top 15 investment avenues in India that assures the highest return, there is a monthly income plan of post office saving schemes.
It is well suited for a retired person who has regular income requirements.
The government saving scheme has low-risk potential and hence, considered safe.
The interest received under this is quite low.
| Requirements and Benefits |
| Interest rate wef- 1.4.2018 is 7.6% payable monthly per annum (multiples of 1500/-) |
| Maximum investment limit- |
| Single account Rs 4.5lacs |
| Joint account Rs 9lacs |
| Minimum eligibility age 10 and above (can be opened in the name of minor or by a minor) |
| A single account can be converted into a joint and vice versa. |
Company Fixed Deposit
Company FDs are very lucrative in comparison to the bank FDs as it provides a higher rate of interest.
Make sure you opt for the investment period cautiously as you are not permitted to withdraw any amount before the maturity period.
The corporate fixed deposit scheme does not have any insurance coverage or benefits and neither is under the control of the reserve bank of India.
So, if you are willing to invest for the long duration, able to bear some risk then you can opt for a company fixed deposit scheme.
Initial Public Offering (IPO)
Do you know, Initial public offering popularly known as IPO is once in a lifetime opportunity happens once for every company?
It is very attractive and lucrative if the company is reputed and financially strong.
There is some unique kind of risk and uncertainty associated with it.
It is a long term investment option for low risk.
Unit Linked Insurance Plans
It is also called ULIP, Which comes under the list of top 15 investment options. It invests in debt and equity markets.
Under this, there 2 kinds of investment choices
- ULIP – Unit linked insurance plan that gives returns on the basis of overall market performance.
- The second one is Traditional endowment plans which offer a one-time payout or annuity payout as a maturity benefit. Both the plans are considered as best, the choice depends on your insurance goals, investment money, and investment horizon and risk appetite.
The fluctuation is counted by net asset value NAV. It is not very popular but plays an important role in the investment market.
Invest in Bonds
If you are uncomfortable with equity and mutual funds, then you can opt for investing in bonds.
Yes, investment in bonds can be one good decision because since there are multiple bonds that provide great returns such as a high rate of interest to the investors.
If you are capable of risk appetite then you can consider investing in the bonds.
| What is NCD? Types & Benefits | Upcoming NCD Issue in 2024 |
Bank Fixed Deposit
Bank fixed deposit is a well known financial instrument to park your surplus and money to have a higher rate of return on your deposit as compared to the savings account.
The interest rate is determined by many factors and as per the bank policy and guidelines
The returns are payable monthly, quarterly or annually, as per the bank guidelines.
Depending on the bank, a Fixed deposit offers the cumulative or non-cumulative option.
In a non-cumulative option, interest is paid as underwriting, whereas in the cumulative option the interest is re-invested within the fixed deposit and is then payable at maturity
Investment in the fixed deposit can be done online by visiting any branch of the bank of your choice.
The interest rates given are highly attractive, as they range about 6.50% for regular account holders to over 7% for senior citizens, for an FD of 1 year.
Fixed Deposit comes with a range of tenure- 7days maximum- 10 Years and the investor can choose what suits their requirement best.
It is the best investment option for the salaried person. You can park your surplus and watch it multiply with time.
Senior Citizens Saving Scheme
Everybody wants to get secured. If you are planning about your retirement needs then you must be seeking which are the best investment option after retirement?
Yes, Senior citizens saving scheme is risk-free, tax saving investment avenue for senior citizens above the age of 60 years and offers them with regular income.
They offer a massive 8.6% interest per annum, which makes them highly lucrative avenue.
These are available across India through the post offices and certified banks
The maximum sum you can invest in this scheme is 15 lakhs.
While the tenure of this scheme is 5 years, it can also be extended for another 3 years. In my opinion, it is one of the best investment options for senior citizens.
RBI Taxable Bonds
The tenure of RBI taxable bonds is 7 years and offers a rate of interest of 7.75% per annum.
These bonds are issued in Demat mode only and are credited to the bond ledge account (BLA) of the investor.
The bonds are issued at the price of rupees 100, and as a proof of investment, the investor will receive a certificate of holding.
In the non-cumulative option, the interest can be availed as income, where the cumulative option includes interest reinvested
National Pension Scheme (NPS)
It is a government initiative that aims to give pension solutions. The funds invested in equity, bonds, government security and investment alternatives as per the will of the investors.
It gives two options one is auto another one is active. In the former, the funds get automatically invested in various assets, whereas the latter allows the investor to make the choice.
The lock-in period for any investor depends on their age, as the schemes only get matured when the investor turns 60.
The accumulated interest is tax-free in this scheme. If one avails the lump sum payment upon maturity, 40% of its tax-exempt, if one opts for the pension after maturity, the amount is taxable as regular income.
Sukanya Samridhi Yojana
The Sukanya samridhi yojana was introduced primarily to promote the welfare of the girl child that is why the account be opened by the legal guardian of the girl.
The account has the tenure of 21 years and can be opened with as rs 1000.
The rate of interest offered under this scheme is 8.6% and is compounded annually or paid monthly, as per the option availed.
The interesting things are, the scheme offers triple tax-exempt, as the amount invested, interest received and the amount withdrawn are all exempted from paying tax, as per the income tax Act,1961
Recurring Deposit
A recurring deposit can be opened at any bank or post office branch and is the best way to deposit your money safely at recurring levels.
The term of the recurring deposit varies, as the bank offers them for a duration of 5 years, whereas the bank can even offer them for even 12 months.
Monthly, quarterly, half-yearly, yearly or cumulative interest options are available for the investor to choose from.
Best way to make money work for you
Yes, you heard it right. Below, I have mentioned top ways to make money work for you
You may not love working tirelessly for hours or to wake 5 days a week and going to an office, in order to generate much-needed cash for yourself.
- Money attracts Money– By this, I meant to say that you can lend your money to someone for a predefined period of time. Yes, the money will come back with an interest.
Or you can also consider investing in stocks
- Buy something of great value
You are the owner of something which you think it value will enhance with time. at the time of credit need or requirement, you can sell it and get the money along with the profit.
There are both short term as well long term option is available in India such as mutual funds, fixed deposit, equity shares, stock markets and many more.
One can choose the more appropriate option as per his budget, need and future plans.
Risks and returns are the two terms that strike your mind an instant whenever you heard about investment options. All the three terms risk, investment, and returns are interlinked. High investment leads to great risk and with great risk comes high returns.
Some people consider the investment as gambling, but it is not at all true. These two terms are quite different from each other.
One should not get confused with the two terms. Gambling is putting money at risk by betting whose outcome is unpredictable or uncertain.
Patience, time frame, risk tolerance, and most importantly knowledge act as 4 powerful strategies that can reduce your exposure to risks.
Frequently Asked Question-Top Investment option
Below, I have compiled the list of queries and their respective answers. Go through them carefully
Q How is the risk and return related?
Yes, risk and return are directly related to each other. Generally, in any investment risk factor is high with high potential of returns
Q What is asset allocation?
Asset allocation is a smart investment strategy whose main criteria is to balance the risk vs rewards by distributing the asset of the investor as per the investment duration, risk appetite, and financial goals.
The three major asset classes are fixed income, equities and equivalents, and cash.
Different asset classes have a different level of returns and risk over a period of time
Q What is diversification?
It is a method of distributing the funds in a way that it balances the risk and minimizes specific asset.
Under diversification, the investment is made in different assets in order to minimize volatility and risk uncertainty
Q What kinds of risks are involved in Investing?
Below listed are the risk associated with the investment
- Market-related risk
- Liquidity risk
- Concentration risks
- Credit risk
- Reinvestment risk
- Inflation risk
- Longevity risk
- Horizon risk
- Foreign Investment Risk
Q What are the steps in the investment process?
- Understanding the client
- The decision of asset allocation
- Strategic portfolio selection
- A decision of asset selection
- Evaluating the performance of the portfolio
Q How can I avoid money-losing mistakes?
- Don’t put all your money in the same place, diversify your funds
- Don’t test the market
- It is advised to set long term financial goals
- Start investing through SIP( Systematic Investment Plan)
Q What are the things to be kept in mind while doing any investment?
- Investment goals
- Risk appetite
- The time frame of investment
- Who are you investing in
- Are you making a diversified investment
Q What investment haphazard should I look out for?
- The investors should first evaluate the needs and then make investment accordingly
- Monitor on managing your investment
- Set long term financial goals
- Don’t rely on a shortcut to make money
- Invest in a fund in a disciplined manner to avail maximum returns
Q What is the impact of taxes on my investment?
The net profits earned on the stock sales are taxed as capital gains. The tax advantage is given on mutual funds, ELSS funds under section 80c of the income tax act.
Q What are derivatives and options?
Derivatives can be described as investment options whose value is created in underlying stocks such as stocks, bonds, currencies, commodities, market index, and tax rates
Options, on the other hand, are kinds of derivatives and are great investment instrument which gives an edge to your investment portfolio and reduces the risk.
So, this is all about investment options in India.
Q When should I start Investing?
Before stepping your feet in the share market make sure you are knowledgeable, surrounded by experts to seek guidance and sufficient funds available with you.
You can gain returns and generate wealth as long as you stay invested.
Always remember that
“When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.”
Final Words
It is aptly stated that “Risk comes from not knowing what you’re doing.” – Warren Buffett
It is suggested to make a well-informed decision. Do not get influenced by the decision of others. Set your own realistic goals and invest your money.
I hope you fund the information provided above on the investment option in India of great help.
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“The secret to investing is to figure out the value of something – and then pay a lot less.”
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