Nowadays, Investment comes to the top in the market. Every earning citizen wants to earn more from their work. Investment is important in today’s world because earning money by the job is not enough, every person wants a comfortable life and fulfills the dreams. You want your money will work hard for your profit, that’s why you invest. Smart uses of anything make you profitable, money-saving on homes is not a good Investment Options and extremely worst too. Work smartly with your money and invest them to make a profit and to get returns from the investments.
WHAT IS AN INVESTMENT PLAN?
While investing, there is a need for a proper plan, this is known as an investment plan. You have to focus on the following points while making the investment plan:
- RISK: Amount of risk available on that platform on which you are going to invest.
- TIME: Another important aspect of an investment is the time period; it means how to long your investment will run on that platform.
- RETURN POLICY: Return policy is the most impotent thing in investment. Percentage of return after investment maturity on that platform.
- KNOWLEDGE: Knowledge about that platform means how to invest in that platform etc. It is important to keep in mind.
WHY AN INVESTMENT PLAN?
You cannot just invest your valuable money anywhere. You have to invest them with a proper plan. Work smartly; make a plan for your investment. Know every detail about the platform on which you are going to invest. Some investments are related to higher risks too and you surely do not want to take any kind of risk related to your valuable money and investment. Some investments are linked with so many risks. You invest for profit, not for loss, that’s why there is always a need for an investment plan while investment.
TOP INVESTMENT OPTIONS
Mutual funds are a market-related investment. In mutual funds, money is collected from so many investors and invest in securities like bonds, stocks, debt, equity, etc. The returns of mutual funds are generated as per the market performance of the fund. Many investors think mutual funds are risky, yes it is because it is a market-linked investment, it depends on the market. Best Investment Options With Low Risk
All mutual funds are not risky; there are low to high risk in mutual funds because of it categories:
- EQUITY FUNDS: Equity funds are an investment of high risk. Equity funds are an investment in the long term. It is a better option for tax saving investment.
- DEBT FUNDS: Debt funds are risk-averse investments. In this, about 3-4 years of the time period is required for making an investment.
- HYBRID FUNDS: Contain low-risk factors in mutual funds. Investors can invest for a long period of time in hybrid mutual funds.
- PUBLIC PROVIDENT FUND
Public Provident Fund (PPF) is a risk-free investment plan because it is back by the central government. As you know, it is a government program so the interest rate on a PPF account reconsiders and paid to your account every quarter. PPF is for those investors who want to invest for the long term; the maturity period of an account is 15 years. PPF is also for who would like to enjoy tax refund under section 80C of the Income-tax act.
One of the most popular investment platforms in India is Bank fixed deposits. Fixed deposits are made with banks. Fixed deposits guarantee returns over a fixed period of investment Fixed deposits are for those investors who would like to invest in low risks; actually fixed deposits contain no risk factor. The fixed deposit time period varies from bank to bank. Fixed deposits are also useful for them who want a long term investment plan; it varies from 7-10 years. Fixed deposits are also tax rebates. An investor can opt for tax saver options available for 5-10years of the time period. Low-Risk Investment Options and most popular investment Option
SENIOR CITIZEN SAVING SCHEMES (SCSS)
Senior citizen saving schemes is totally risk-free. It is a better option for people above 60 years. Investors who invest in senior citizen schemes can get a profit of up to 8.6% of the total amount of investment. The most important factor about it, that it a central government backed-scheme overall, that’s why investing in this scheme is totally risk-free. These schemes are available through post offices as well as certified banks too. The maximum amount of investing is 15 lakhs. Another advantage is in investing in SCSS is a tax rebate, which is a great option for senior citizens.
NATIONAL PENSION SCHEME
National Pension Scheme offers your investment higher returns National Pension Scheme is a long term investment plan for individual retirement. NPS is not risk-free but it is scams free because it is back by the central government. Its investors can invest in many different market institutions, the return from these depends on the market-linked instruments. NPS is with tax benefits under section 80C and section 80CCD NPS is a successful scheme and deliver 8% to 10% returns to the investors. NPS is a long term investment plan you cannot withdraw your returns before you turn to 60. If you investing from at least 3 years, you may withdraw up to 25% for certain uses like children’s wedding/higher studies, building/buying a house or medical treatment.
In Recurring Deposits, the investors have to make regular monthly deposits to the bank and the investors can earn good returns from this. One of the important factors of RD is tenure, which can be chosen by the investor from themselves. Recurring Deposits can belong as well as short time period investment, usually, 1-10 years is the range of Recurring Deposits. Recurring Deposits are completely risk-free and one of the safest platforms for invests. The return interest rate varies from 7%-8%. You can only access the interest earned at the time of maturity.
POST OFFICE MONTHLY INCOME SCHEME
Post office monthly income scheme controlled by the post offices of India Post office monthly income scheme is one of the best investment schemes for monthly income. It is a government-backed scheme that helps the investor to save some amount every month. The post office monthly income scheme is one of the safest platforms of investment options and contains no risk. The interest rate is the source of income for the investor in this. You can start with a small amount like Rs 1500. It is a long term investment with a minimum of 5 years.
UNIT LINKED INSURANCE PLANS (ULIP)
Unit linked insurance plan offers two in one deal Unit Linked Insurance Plans is a deal for both investments as well as insurance. Both investment and insurance are available in one deal for the investors. Under, Unit Linked Insurance Plans the investor gets both secure life plans and as well as earning secure returns. Unit Linked Insurance Plans are also good for those who want a long term investment option. It minimum gives you the time period for 10-15 years of investment. It is not popular but it is a premium paid for ULIP is the age for a term of tax deduction under 80C.
Gold Exchange Traded Funds, based on the ever-fluctuating rate of gold, Gold Exchange Traded Funds makes a good profit for their investors in the gold market Gold Exchange Traded Funds are not about to buy physical gold, you can buy it online and can place in your account to keep it safer Gold ETFs are an investment for a long term and for a good period of time, Gold ETFs are the best investment plan due to the rate of the gold in the gold market.
Real estate is an investment contains physical property like buildings, hospital, land, etc Real estate is one of the most growing businesses nowadays, and it is becoming the most investment platform. Geographical location and surrounding is the most important factor of real estate investment, geographical conditions decide the amount of that real estate business because facilities near the property increase its rate in the real estate business. Real estate properties should have good facilities like transportation hubs such as railways and other basic things increase the rate of them in the real estate market. Real estate is not a long neither a short term investment it depends on the situation of the market. High-Risk Investment Options.