Choosing the best investment opportunity for wealth management is a matter of concern for all income groups; the middle class aims to save for security; however, the upper class aims to generate more by investing it aggressively. Although accumulating money is crucial for a financially secure future, it does not make sense that you rely on savings alone.
Instead, opting for some of the top investment options in India is one of the ways to grow your money grow over the years.
Investments are often considered synonymous with the stock market or equity money which is only partly correct. Apart from these, some of the best investment opportunities in India include Liquid funds, fixed deposits, Unit Linked Insurance Plan (ULIP), and government bonds.
Some of the top Investment Options in India
Listed below are some of the best investment options in India[1]:
1. Fixed Deposits
2· Mutual Funds
3· Direct Equity
4· Post Office Saving Scheme
5· Bonds
6· National Pension Scheme (NPS)
7· Unit Linked Insurance Plans (ULIP)
8. Liquid Funds
9· Public Provident Funds (PPF)
10. Senior Citizen Savings Scheme (SCSS)
Stocks
Buying shares of companies is a one-time investment plan. It is one of the easiest ways to invest your money in any business. These are part ownership units of the company which each investor buys. You can trade these shares in a stock market marketplace, where all trades are made electronically. It is one of the most lucrative and riskiest investment options to buy.
Fixed Deposits
These are the safest investment where you are assured fixed interest at fixed intervals of time. Fixed Deposit is offered by banks and NBFCs (non-banking financial companies). It provides options for investing and flexibility to pay. Short term investment plans with Fixed deposits can help you protect your funds against inflation.
Mutual Funds
These are collective investment vehicles managed by a fund manager that pools people’s money, invests in stocks and bonds of various companies, and creates a return. They are in the same category of risk as stocks, though slightly less.
Public Provident Fund
Public Provident Fund is one of the most common and trusted investment plans in India. It pays an interest rate annually and requires a minimum of Rs 500 per annum investment. It has a life of 15 years, with partial withdrawals allowed of the corpus at various points. This option also pays a high and steady interest rate as prescribed by the government from time to time.
Bonds
Like individuals, companies and government bodies need funds for infrastructural development and social programs, for which they issue bonds to the public markets. The interested investors then buy the bonds to help these entities raise money.
In other words, bonds are fixed-income investment options that cover the loan made by an investor to a corporate or governmental borrower. What makes them one of the best investment options in India is that the terms for fixed interest payment, loan principal, and tenure are all included in the bond details. Hence, it assures you of the safety of your investment along with an additional return. Also, bond prices are inversely proportional to the offered interest rates. It means that these prices fall when interest rates increase and vice versa.