Individuals who are planning to opt for the best investment plan in India might have several queries and confusion. While everyone wants to invest in the best scheme, they also want to avail of big returns with minimum risks. Their objective behind investing might be different for everyone, from achieving financial security to meeting investment goals. With all this put together one important factor for an investor to determine before choosing to invest in their investment horizon, risk appetite, liquidity needs, and financial goals. The reason behind all the confusion is the fact that it is hard to find the right investment plan.
When choosing an investment plan, matching the risk profile with that of an investor is a must. While some plans come with high risk, they also have the potential for profitable gain. On the contrary, the low-risk investments will have low return. The right investment plan will provide a cushion of financial security. Therefore, it is always advisable to look for the best investment options as an investor to meet the desired financial goals.
The Best Investment Plan in India for the Year 2022
An ideal investment plan: Mutual Fund is a prominent option in India. This market-linked investment enables investing in financial instruments like stocks, equity, money market fund, debt, and several other areas. Based on market performance, the return for their investment is generated. Though they come with high-risk exposure, the return is also comparatively more. The major investment options under Mutual Funds are – Equity Mutual Fund and Debt Mutual Fund.
Features of Mutual Funds
• It allows to have a diversified portfolio of investment and attain investment objective.
• The investment is transparent which allows investors to make an informed decision.
• This is one of the best investment plans in India that provides tax exemption.
Bank Fixed Deposits:
When it comes to fixed pay ventures, Bank Fixed Deposits are quite a popular option. Also known as FD, this investment plan offers fixed returns throughout its investment tenure. The profits are either paid monthly, quarterly, yearly, or based on the rules set by the bank. The interest rate of this plan is quite attractive and can be opened from a minimum tenure of one year to a maximum of 10 years.
Features of Fixed Deposits
• It is not affected by the market fluctuations, which allows it to pay a fixed return.
• FD can be easily renewed. In the case of certain banks, they also provide the facility of overdraft against their fixed deposits.
• This is a safe financial investment tool that allows earning high returns with surplus fund
National Pension Scheme (NPS):
This is one of the best investment plans in India, which has also been backed by the government along with pension solutions. The fund is invested in government securities, bonds, equities, and several other investment alternatives. It comes in two options namely, active, and auto. While active, investors can invest in their preferred scheme, the auto option invests funds in assets automatically.
Features of the National Pension Scheme
• By investing in NPS, people can enjoy financial independence even after their retirement
• It provides the flexibility to invest in either active or auto NPS
• One of the biggest benefits of NPS is the fact that it allows partial fund withdrawal
Though it is a high-risk investment, Direct Equity is also considered one of the best long-term investment options. It offers high returns than any other investment in the market. Investing in Direct Equity requires the investor to have appropriate knowledge about the right stock and the information on the market entry and exit. Initiating this kind of investment requires an individual to open a Demat account.
Features of Direct Equity
• It allows investors to get in legal terms to purchase the company ownership
• As lucrative is the investment so much higher are the returns
Initial Public Offerings
It is the offerings that new companies make to invite the public into buying the shares of a company, before listing it on the exchanges. The best part of such an option is that the rates are low. Though a high-risk scheme, over time in the long, it could get high returns.
Features of the IPO:
• It is a great option to have a significant share of a company in the initial days itself.
• IPO has proven beneficial for founders as well investors
• The returns on this kind of investment are high and can assure meeting financial goals
Gold Exchanged Traded Funds is a combined investment in stock as well as in gold. What makes it special is the fact that investors can buy and sell them easily. The risk factor is high, but the returns are significant which makes it a very good investment option.
Features of Gold ETF
• Investing Gold ETSF provides individuals with the security to get loan approval and make an instant transaction
• People can enjoy the advantage of selling and buying quantum as per their requirement
• It provides investors high liquidity than can be traded in the stock exchange easily