Where to Invest Money in India?: Most of the investors want to make lots of money by investing but the problem is the majority of the investor do not have an idea regarding the best option for investment available to them with the capital they want to invest. In this blog, we are stating different schemes and options available for the money investment. In the start of the investment, you should define your risk appetites that how much risk you can take for investment purpose.
There are majorly these 8 options available for investment that will give you returns and will save your money.
Best Way to Invest Money in India
In India, there are lots of investors who have good income source and are also interested in earning extra passive income by making investment. But most of the people don’t know the best option available to them for investing and growing their wealth. There are many types of options available to them for investment purpose but due to lack of knowledge and advisory people end up losing their capital.
So, in the below of the remaining blog we had explained the various major options that are available for the citizens of India to make investment and safe their capital. Always take the proper guidance and knowledge about any of the investment options or schemes in which you are making your investment. Think Wisely and act accordingly to it.
1. Direct Equity
Investing in stocks might not be everyone’s cup of tea as it is a volatile quality category and there’s no guarantee of returns. Further, not solely is it tough to select the correct stock, temporal order your entry and exit is additionally tasking. The sole bright side is that over long periods, equity has been ready to deliver over inflation-adjusted returns compared to any or all alternative quality categories.
At an equivalent time, the danger of losing a substantial portion of capital is high unless one opts for stop-loss technique to curtail losses. In stop-loss, one places associate degree advance order to sell a stock at a particular worth. To scale back the danger to sure extent, you’ll diversify across sectors and Market Capitalisations. Currently, the 1-, 3-, five year market returns are around 13 %, 8 % and 12.5%, respectively. For investment in direct equities, one must open a demat account.
2. Equity Mutual Funds
Equity mutual funds preponderantly invest in equity stocks. As per current Securities and Exchange Board of India (SEBI) Mutual Fund investment company’s rules and regulations equity mutual fund investment company should invest a minimum of 65 % of its assets in equities and equity-related instruments.
Equity Mutual fund may be actively managing or passively managing. In an actively listed fund, the returns are majorly keen on a fund manager’s ability to get returns. Index funds and exchange-traded fund (ETFs) are passively manage, and these track the underlying index. Equity schemes are categorized in step with market-capitalisation or the sectors within which they invest.
They are also categorized by whether or not they are domestic (investing in stocks of solely Indian companies) or international (investing in stocks of overseas companies). Currently, the 1-, 3-, 5-year market come back is around 15 %, 15 percent, and 20 %, respectively.
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3. Debt Mutual Funds
Debt funds are ideal for investors need steady returns. They are less volatile and, hence, less risky compared to equity funds. Debt mutual funds primarily invest in fixed-interest generating securities like company bonds, government securities, treasury bills, cash equivalent and different market instruments. Currently, the 1-, 3-, 5-year market return is around 6.5 percent, 8 percent, and 7.5 percent.
4. National Pension Scheme (NPS)
The National Pension System (NPS) may be a future retirement – centered investment product managed by the Pension Fund restrictive and Development Authority (PFRDA). The minimum annual amount (April-March) contribution for an NPS Tier-1 account to stay active has been reduced from Rs 6,000 to Rs 1,000. It’s a mixture of equity, fixed deposits, company bonds, liquid funds and government funds, among others. Based on your risk taking ability, you’ll be able to decide what quantity of your cash may be endowed in equities through NPS. Currently the 1-3-5 year market return of fund is approximately 9.5%, 8.5% and 11%.
5. Bank Fixed Deposit (FD)
Bank fixed deposit (FD) could be a safe selection for investment in India. Under the deposit insurance and credit guarantee corporation (DICGC) rules, every investor in an exceedingly bank is insured up to a most of Rs one Lakhs for each principal and interest total amount. As per the requirement, one might pick monthly, quarterly, half-yearly, yearly or additive interest possibility in them. The interest rate earned added to one’s financial gain and is taxable as per one’s financial gain slab.
Possessing gold within the type of jewelry has its own issues like safety and high value. Then there is the ‘making charges’, which generally vary between 6-14 per cent of the price of gold (and might go as high as twenty five just in case of special designs). For those that would wish to shop for gold coins, there is still another choice left with them. An alternate means of owning reserve gold in a very less expensive manner is through gold ETFs. Such investment (buying and selling) happens on the exchange with gold as underlying assets.
7. Senior Citizen’s Saving Scheme (SCSS)
Probably the primary alternative of most retirees, the Senior Citizens’ Saving theme (SCSS) could be a must-have in their investment portfolios, because as the name suggests, solely senior voters or early retirees will invest during this theme. SCSS are often availed from a post workplace or a bank by anyone higher than sixty. SCSS incorporates a five-year tenure, which may be more extended by 3 years once the theme matures. Currently, the rate of interest which will be earned on SCSS is 8.3 per cent every year, collectable quarterly and is absolutely fully taxable. The investment with more than limit of Rs 15 lakh, might be necessary to open more than 1 account.
8. Real Estate
The home at which you live is for self-consumption but the second property you opt to buy is the part of investing money for long term in the asset which will provide you a fixed income generation over the years. The location of the property is termed as the most important thing to define where the prices of the property will go up or not in the near future.
There are two types of income generation in real estate: – Rentals and Capital appreciation. This investment in real estate is relatively to be highly illiquid.
Through this blog the main motto is for the readers or the beginners to know the best investment option available in the market which will save their invested capital also get them some returns. We at Trading Fuel provide various blogs therefore, it is informative materials on the stock market and that is free of cost and is only for the educational purpose. Regarding this blog, if you have some doubts you can contact us and resolve your doubts via e-mails.We hope that’s you like our blog of “Where to Invest Money in India?” & “Best Way to Invest Money in India”.