In this article, we will discuss some investment options in India with good returns.
Many questions arise when discussing the finest investment alternatives available in India. Every investor seeks out the best investment options in India, where they may get the highest return within a given time frame with the least risk. Some people invest to reach their investment goals, while others do so out of a desire for financial security. Your risk tolerance, investment horizon, financial objectives, and liquidity requirements should be considered when selecting an investing strategy. This is why savvy investors are constantly searching for the finest investment opportunities in India, where they may quadruple their money over a set period with little to no risk. However, it can be challenging to discover an investment strategy that offers both high returns and low risk.
In fact, returns and risks are directly inversely correlated, meaning that the likelihood of returns increases as risk increases. Financial and non-financial assets are the two basic categories into which investment opportunities in India can be divided. We can further categorise the financial assets into fixed income products like bank FDs, public provident fund (PPF), bank RDs, and other market-linked securities like mutual funds, live stocks, etc. Real estate, Treasury notes, and gold investments are examples of non-financial assets. You may reach your financial objectives and build a financial cushion for a secure future by choosing the top investment alternatives in India.
Six investment options for good returns
Public Provident Fund (PPF)
One of the safest long-term investment alternatives available in India is the Public Provident Fund (PPF). It is tax-free, and you can open a PPF account at a bank or post office. The invested funds are locked for a 15-year period. Additionally, this investing choice allows you to receive compound interest on the money that has accrued. The next five years’ time frame may potentially be extended. The fact that you can withdraw the money you put in a PPF account before the end of the sixth year is its only drawback. You can borrow against the remaining balance in your PPF account if you ever need the money.
The perfect investment strategy that provides high returns on the investment over the long term is mutual funds, one of the popular investment options in India. It is a market-linked investment alternative that makes investments in a range of financial products, including equities, money market funds, debt, and many other types of securities. The returns are produced in accordance with the fund’s market performance. When compared to other top investment options on the market, mutual fund investing gives superior returns despite having a larger risk exposure.
For investors who are knowledgeable about the market and are willing to take on a lot of risks, commodities, shares, and derivatives can be successful options. Depending on the investors’ financial goals, stock market investments can be undertaken for the short term or the long term.
Real estate offers enormous opportunities in a variety of industries, including retail, housing, manufacturing, commercial, hotel, and much more. It is one of India’s fastest-growing industries. One of the best investment choices in India is to purchase a flat or a plot of land. Due to the property’s rate increase within a six-month period, the risk is extremely minimal. One of the best investment strategies with high returns over a long time horizon is real estate investing, which functions as an asset.
The RBI Taxable Bonds have a seven-year term and a 7.75 per cent annual interest rate. These bonds are exclusively provided in Demat mode and are credited to the investor’s Bond Ledger Account (BLA). Bonds are issued for Rs. 1,000, and investors receive a Certificate of Holding as verification of their investment. In contrast to the cumulative option, which offers the re-invested interest, the non-cumulative option allows access to the interest as regular income. This makes these bonds among India’s top investment choices.
Postal Office Monthly Income Scheme
The Post Office Monthly Income Scheme, as its name implies, is a programme that encourages regular savings and is administered by Indian post offices. The programme supported by the government allows users to save each month. A Post-office MIS account can be simply opened by any Indian citizen for as little as Rs 1,500. The account’s five-year maturity period officially starts on the day it is opened. Additionally, the investors may open a POMIS account either singly or jointly. The programme does not offer a tax break on either the investment amount or the maturity amount; thus any investor seeking a scheme that provides a tax-saving option should not choose this instrument.