10 Best Investment Options in India

When you have met all the expanses and still left with surplus money raises the desire to savings. Instead of just saving it, you can opt to invest in various investments options which can earn you good returns. 

Listed below are the List of investment options where you can invest your extra money and earn good returns. 

Bank Fixed Deposits:-

Fixed deposit in banks form a major vote in terms of the safest investment in India. The most important reason for this is its ability to provide reasonable returns & the money invested is locked in safely. You can always be assured of the returns. The time period for an FD may range from 15 days to more than five years.Many Indian banks provide good interest rates on fixed deposits ranging from 8 percent to 9.25 percent per annum. You can fixed your money for 1 to 5 years as they are considered to be very safe investments. Currently, 1-2 year FD offers a rate in the range of 9.10-9.50 percent and 3-4 year FD 8.75-9.25 percent. Tax-free FDs with tenure of more than five years fetch you 8.25-9.25 percent.The good thing here is that your money invested will be safe & you don’t have to worry about it all till the maturity period.

Insurance Policy Investment:-

After fixed deposits in banks, another popular choice of people is Insurance Policy Investment. An excellent feature about this option is that you can get profits which are risk free. Insurance policies range from a variety of types & provide different types of coverage. Insurance policies like LIC, Home insurance, car insurance & Health insurance are few examples of such type of investment options.

Public Provident Fund (PPF):_

Public Provident Fund is also a good option to invest money securely for future periods. The primary reason is the high rate of returns mainly for people who are under 30% tax brackets. The rate of interest returns on PPF can be as good as 9%. However, the time span of investment can be as high as 15 years. However, with almost no risk options & good returns makes this a pretty feasible option to choose.  

National Saving Certificate (NSC):- 

National Saving Certificate is another favorite investment options of people in India. This investment option comes with six year time span & with the ease of Government subsidies. Hence, all these characteristics make this option secured in every sense. A person can begin with as small as Rs.100/-. The rate of interest is 8% which is calculated two times in one year. You can benefit from tax deductions till up to Rs. 1- lakh on NSC returns.

Mutual Funds:- 

Mutual Funds are also very popular among people. They can prove to be very fruitful if you make limited investments & generate a diverse portfolio which can give high returns. If you want to enter into stock markets & don’t wish to take unnecessary risks then this is viable option. Also you can generate higher profits. It is an ideal way investment if you want to diversify your risks & get good returns. A diverse portfolio reduces the risk factors & prevents you from complete loss of your investment.

Stock market:-

Investment in stock market is an ideal way to generate higher profits faster. We consider it as one of the most risky investment options. However, there are high risks involved & you cannot be assured of the returns every time. Hence, it is very important to understand the market properly. Also you should have a sound knowledge about the various factors that affects the stock market. If you know all this then no one can stop you from earning good amount of high returns.These profits are referred to as dividends. However share market is volatile and you may gain or lose your money.

Gold investment:-

Investment in gold is a good option for both long term and short term time period. It is observed that investment in gold has provided almost 24 percent yearly returns in the last 5 years. There are various options to invest in gold.. People who cannot think beyond gold as any investment option then 5% to 10% should be the general investment limit.

Real Estate investment:-

Real estate investment has always been a favorite of investors. Real estate investment has already attracted high-escalated rates which makes it even beyond the capabilities of rich people. This situation is particularly true for cities like Delhi, Mumbai & Bangalore. The state of affairs is comparatively better in the two or three tier cities. You should carefully consider the prices of the property before you invest. If the prices seem pretty good to you then go ahead. Otherwise you have many other options to invest. 

Private Equity:-

Private Equity is another good investment option. It does not depend on the traditional stock market scenario. Private equity investments consist of equity securities of a private company. These equity securities are offered by privately owned equity firms, angel investors or venture capital organizations. The concept of private equity investments is on the increase in India. The returns are satisfactory & there are above 365 firms that function under Indian equities currently. 

ULIP

Unit-linked insurance policies (UILPs) have both life insurance and investment components. Your premiums are used to pay for units in investment–linked fund(s) of your choice. Some of the units you buy are then sold to pay for insurance and other charges, while the rest remain invested.

Non Resident Ordinary or NRO investment:-

Non Resident Ordinary or NRO investment funds are also a favorite of people when it comes to invest in a good investment option. It is especially preferred by Non-resident Indians. Any NRI can invest the wealth earned on foreign shores in Indian currency safely.