Top 5 Investment options in India
In an ideal world, everybody would have enough money to do the things they want to do. However, most people settle for working throughout the day, when really they’d much rather be doing something else altogether. Wouldn’t it be nice if somehow it were possible to make money without working all the time?
How, you ask?
Well, this is why some of the most successful people in the world spend time building avenues for passive incomes - through writing books, home rentals, or stock markets. This is the magic of investments correctly made. When you invest your money, you don’t have to work for your money - rather, it works for you. The tricky bit is to navigate the labyrinth of options available at your disposal; there are so many ways to invest, that if you try to learn thoroughly about all of them, you might as well lose your mind!
So here’s what we’ve done for you. We’ve made a list of the 5 best ways to invest - you can pick one method for every day of the week! - so that you better understand all scenarios and can plan accordingly.
1. Unit Linked Insurance Plans
It would be a grave injustice if we talk about best investment options and don’t mention life insurance. After all, with this we can get a monthly income as well! They are a great option not only to make your money grow but also to secure your and your loved ones’ futures. More and more people are recognizing and appreciating the benefits of these life insurance plans and are taking that route.
ULIPs are unique investment plans that combine the best of both worlds - life insurance policy and a market-linked investment. If you love living on the edge, uncertain about your future at all times, then a Unit Linked Insurance Plan (ULIP) is the best mode of investment for you! While other modes of investment only offer monetary returns, this mode of investment also provides you the mental security of knowing that, should any untoward circumstance befall you, your family will receive money on your behalf.
In a ULIP investment, your money goes into certain stocks and bonds which you can determine, and in addition, you also get a life insurance cover. This is the cover that facilitates the death benefit which your family - or a nominee, in the strictest sense - will receive. A ULIP plan usually does not have as much risk as certain other forms of investment, but again, this is specific to the policy of your choosing.
2. Guaranteed Savings Plans
In today’s financial markets, where everything is uncertain, it can be a boon to know that you’re sure to make a certain amount of money without fail. And this is where guaranteed savings plans come in. Let’s say you invest x amount of money in y number of years. At the end of your plan, you are guaranteed to get double the money back! Of course, this only happens, if you pay all your premiums on time - but why wouldn’t you, if you’re a discerning investor?
So without doubt, if you’re a risk-averse investor, go for a guaranteed saving plan - since after all, no matter what comes or goes, your money is sure to come back to you, and that too exactly double!
3. Child Plans
If you have a child - or are considering becoming a parent - then a child plan should definitely be on your investment radar. Not only does a child plan offer guaranteed returns, it also offers tax benefits as well! Given that the cost of education is going up constantly, you should invest for the future of your child just as soon as they are born. Losing time in this regard is not advisable - in fact, the earlier you invest, the sooner you’ll be able to ensure that they never meet any financial obstacles, whether they want to pursue higher education, or want to have enough money to begin a startup of their own. Of course, the scenarios are endless, so it’s a wise move indeed to start early!
4. Mutual Funds
The holy grail of investments, mutual funds are often considered (arguably) to be the be-all and end-all of investing. This is a great way to generate wealth - but being hasty here will not be an option, since there is significant risk involved. You will have to study the markets carefully, whether you choose to do it on your own or with the help of a financial advisor. It offers 2 types of advantages - a diverse investment portfolio that reduces risk, and stable returns..
5. Public Provident Fund
If you’re in it for the long haul - 15 years to be precise - and want a stable rate of return each year, then a Public Provident Fund (PPF) is the way to go! The best thing about a PPF is that all the income you generate is completely tax-free, so you can invest as much money as you want!
Well, that isn’t true in the strictest sense - there is a cap INR 1,50,000 each year. But still, who doesn’t love tax-free income?! If you’re okay with your investment being capped at that amount, be sure to consider a PPF! After all, you get compound interest on this - and that’s really something, isn’t it? One of the disadvantages of investing in a PPF though is that your money gets locked for a period of 15 years - and in addition, you also can’t withdraw any money before at least 6 years. In case you’re desperately in need of a loan, you can borrow a loan from the bank against the balance you have in your PPF account as collateral.
So these according to us were the ones that made it to the top 5! Let us know if you think you agree with our options, or if you want us to write about anything else that interests you, by commenting below!