What is Investment planning and what are the best invest plans in India?
Investment planning is the process of identifying financial goals and converting them through building a plan. Investment planning is the main component of financial planning. Investment planning begins with the identification of goals and objectives. Most people do an investment plan to secure their wealth in the future so that they can become financially independent after retirement. In this article, we will talk about India’s 14 best investment plans where you can invest your money to get a better return in the future.
Public Provident Fund (PPF):
PPF is considered to be the best and safest investment mode in India, it is one of the most popular small savings schemes. The highest investment amount by a PPF holder in a financial year is 1.5 lakh whereas the minimum deposit is Rs. 500.
Deposits can be made in lump-sum or 12 installments. PPF deposits qualify for deduction from income under Section 80C of the Income Tax Act. In terms of income tax implications, PPF accounts also qualify for the EEE (exempt, exempt, exempt) tax category, which means an investor is not liable to pay tax at all three levels – investment, earning, and withdrawal.
PPF is considered to be the best and safest investment mode in India, it is one of the most popular small savings schemes. The highest investment amount by a PPf holder in a financial year is 1.5 lakh whereas the minimum deposit is Rs. 500.
Mutual fund dealers allow you to compare the funds based on different metrics, such as level of risk, return, and price. Also, as the information is easily accessible, the investor will be able to make wise decisions. Besides, Mutual Funds offer benefits in liquidity and professional management.
Direct plans help you to save money on commissions and marketing-related expenses. This small saving is invested in the scheme and it may help you to make extra returns over a long period.
Real Estate Investment
Investment in real estate is one of the most lucrative and beneficial in India, as the potential for development is huge and the market is growing.
Traditionally considered to be among the best options, gold investment schemes offer you the chance to convert a blocked asset into high-value liquidity.
Post Office Saving Scheme
Ideal for retired people who need regular income, it comes with the option of account conversion.
Company Fixed Deposits (FDs)
Company FDs offer higher interest rates than bank FDs and are ideal for long-term investments.
Initial Public Offerings (IPOs)
IPOs, launched by reputed companies are an ideal long-term and low-risk investment option.
ULIPs (Unit Linked Insurance Plans)
ULIPs offer a range of benefits and provide the joint benefits of investment and insurance. Known for tax benefits, ULIPs are among the top investment mediums in India.
Bonds are often liquid – it is often fairly easy for an institution to sell a large number of bonds without affecting the price much.
Bank fixed deposits are extremely popular in India. Coming with cumulative/non-cumulative options, bank FDs offer fixed returns over the investment tenure and the returns are payable on a monthly, annual, or bi-annual basis, depending on the bank policy.
Senior Citizen Savings Scheme (SCSS)
SCSS’s are tax-free and risk-free investment options for senior citizens above the age of 60. They offer big interest rates and are quite lucrative.
RBI taxable bonds
These RBI bonds have a tenure of 7 years and are issued in Demat format (they are credited to BLA or Bond Ledger Account of the holder).
National Pension Scheme
It is a government-organized pension product for the employees of all the sectors in India and offers plans based on equity debt, corporate debt and government bonds. In NPS a minimum contribution of Rs 6,000 a year is required while there is no upper cap.
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